A child’s story which glosses over costs. It is a lossy system, and does not illustrate or show who bears the ultimate cost. Implicit is the assumption that the transfer of wealth is warranted by those costs.
IMO normally it has been, recently it has not been. Keeping the banks afloat “at all costs” has become the TBTF mantra, and intermediaries like JPM have clearing operations at are nothing short of zombies.
I like Poszar, but one needs to read everything he writes in order to get what he is really saying. Ultimately he is saying that the system is working for now, but that there are certain potential destabilizing events that could exceed its functional capacity.
No, not all money that is created contributes to creating inflation. Yes, inflationary forces might be offset by the huge credit destruction that we will soon see. I wish you guys would stop using the flawed CPI to represent inflation.
Igy I am surprised you haven’t yet linked to Gundlach on Real Vision: