remove
What do they know that we don’t?
Reality dawns.
Davos 2024

Oh blimey!
The debt fuelled growth model of globalisation never had a long term future.

Sustainable growth.
So easy to say, so hard for global policymakers to achieve.

What confuses global policymakers so much?
Banks create money and debt at the same time.
Banks create the money first and then they have to get it back again to balance the books.
The economy booms on the money creation of bank credit, but policymakers are oblivious to the claims on future spending power piling up in the banking system.
At 25.30 mins you can see the super imposed private debt-to-GDP ratios.

China has just reached the end of the road with the debt fuelled growth model of globalisation.
We got there in 2008, and have referred to it as the Productivity Puzzle ever since (UK).
Not considering private debt always was the Achilles heel of neoclassical economics.

How private banks create the...