At the high level, our global economic plight is quite simple to understand says noted Australian deflationist Steve Keen. Banks began lending money at a faster rate than the global economy grew, and we’re now at the turning point where we simply have run out of new borrowers for the ever-growing debt the system has become addicted to.
Once borrowers start eschewing rather than seeking debt, asset prices begin to fall – which in turn makes these same people want to liquidate their holdings, which puts further downward pressure on asset prices. From Chris Martenson via YouTube. Visit Steve Keen’s page at the University of Western Sydney. Visit Chris Martenson’s website.