The problem is the debt cycle. All of the material problems from the 08 crisis still exist, and in fact have been exacerbated by the remedial actions of the West -- mainly the QE.
Ours is a very unusual time. Quality is a bigger problem than quantity for the first time in history ie, macronutrient starvation is eradicated but micornutrient starvation is at an all time high.
The foundation of the post war West is resting on the equality assumption that violates all laws of nature, which is basically that all groups are equal in abilities, wants and deficits. This assumption can only be sustained with massive expenditure and at some point an unsusaintable ideology like ours will collapse under its own weight after trading partners will no longer trade with us because they don't believe they will be repaid.
The debt of the West already exceeds our ability to repay it. The machinations at the ECB are basically doomed because no amount of central bank policy can make the debt load repayable. Perception is everything with fiat currency so no one can say when the cracks in the system will cause a total collapse. But the cracks are spreading.
2008 was a small preview of what can happen. The BIG one may still be decades away. The cause of 2008, at its most base, is the idea that heretofore accepted laws of the universe aren't laws at all and are better understood as prejucides. This is the bedrock principle of keynesian economics and postmodernism generally.
In the end though the laws don't care that we don't believe in them anymore, if they are laws we must abide them. No exceptions.
This may sound too tin foil hat, so be it. I wish we were in a nice stable time or reasonableness. However, wishing for a thing does not make it so.
Ours is a very unusual time. Quality is a bigger problem than quantity for the first time in history ie, macronutrient starvation is eradicated but micornutrient starvation is at an all time high.
The foundation of the post war West is resting on the equality assumption that violates all laws of nature, which is basically that all groups are equal in abilities, wants and deficits. This assumption can only be sustained with massive expenditure and at some point an unsusaintable ideology like ours will collapse under its own weight after trading partners will no longer trade with us because they don't believe they will be repaid.
The debt of the West already exceeds our ability to repay it. The machinations at the ECB are basically doomed because no amount of central bank policy can make the debt load repayable. Perception is everything with fiat currency so no one can say when the cracks in the system will cause a total collapse. But the cracks are spreading.
2008 was a small preview of what can happen. The BIG one may still be decades away. The cause of 2008, at its most base, is the idea that heretofore accepted laws of the universe aren't laws at all and are better understood as prejucides. This is the bedrock principle of keynesian economics and postmodernism generally.
In the end though the laws don't care that we don't believe in them anymore, if they are laws we must abide them. No exceptions.
This may sound too tin foil hat, so be it. I wish we were in a nice stable time or reasonableness. However, wishing for a thing does not make it so.