Deadly Japanese Carry Trade Resumes Piling On Debt
All the pirates, all our G7 allies, the army of people playing with Funny Money™ are ecstatic today. The stupid, useless and destructive game of buy-ups, buy-outs and wild lending with no consequences has returned. Both the US and Japan have created conditions whereby lending is far, far cheaper than the real rate of inflation. And this means lots of easy money will resume flooding the planet but not in commodities any more. It returns to hiding deep inside people's pockets. All these deals do is create unemployment since all these deals pay for the interest rates from these useless loans by firing people. This is why we see expanding stock markets running right alongside collapsing incomes and rising unemployment. All the dire economic problems I rage about will get worse, not better.
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