>>But after 1980 we began to grow at a much faster pace and since 2000 the U.S. nominal GDP, the economy has expanded by $1.6 trillion but total credit market expanded by 7.6 trillion. In other words, more and more debt has to be created in order to maintain the American economic plane at the high altitude. And in this situation, a very large debt as a percentage of the economy's deflation occurred now. Then, obviously, bad loans would escalate and you would have defaults in the system.<<<
Dan, Isn't this crazy!! Economist 50 years from now will look at these times and say "what wre these guys thinking?"
Faber then says, "Now Mr. Greenspan was aware of the problems he, incidentally, created himself because since he has been the chairman of the Fed you can see the Fed expanded at a very rapid pace as a result of his easy monetary policies. Being aware of the problem he created after 2001, he cut interest rates massively. In other words, he manipulated the American economy..."
We have talked about this here before. Greenspan screwed over the American public for personal gain in recoginition. He did what many thought popular but he did not do was right for future generations.
Dan, Thanks for posting. Good read.
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