Dougie93 Posted July 12, 2022 Report Share Posted July 12, 2022 3 minutes ago, Nationalist said: Well then it would be the government's fault for printing too much cash. This whole Covid panic has been handled poorly all the way through. Perhaps it was the excuse needed to get to this end game your speaking of? Either way, the governments cannot be trusted.! yes, the government is flooding the economy with cash but you are already seeing the limiting factor on that the inflation of the money supply is already starting to break things but the real problem is the massive debt because in order to contain the destructive effects of inflation you have to remove money from the system by raising interest rates the central bank raises its rates the banks then park their money at the central bank instead of loaning it out and that will stop the inflation it will however incite a catastrophic shock to the debt ridden economy you will get a cascading default effect and I mean sovereign defaults, whole countries going bankrupt then you will be into a spiralling deflation, otherwise known as a depression Quote Link to comment Share on other sites More sharing options...
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