Governments and central banks have reacted to the crisis in what they
view is the correct manner, but, in my view, it is an artificial manner,
and they are only making the crisis worse. The reason it is stretching
out as a problem is that they never let the problem cure itself.
For instance, in 2001 and 2002, there were economic problems in the world and they hurt, but they were not that bad. The next one came in 2007-08 and it was much worse because the debt had risen by then. Central banks, especially the American central bank, started printing money and everything felt better for a while. Then the problem came again and central banks led by the Americans, and governments led by the Americans, again ran up even more debt and continue to do so. Many of us feel better, especially the ones getting the money, but, overall, it is worse now and the situation continues to deteriorate because the debt is so much higher now. The next time we have a slowdown, it is going to be a lot worse. In America, the debt quadrupled and a lot of it is garbage—we are floating on an artificial sea of liquidity, and it is wonderful if you are in the right boat.
Problems always come no matter what governments say and we have always
had slowdowns in America after every six or seven years even in good
times. Be very worried because the next time around, things are going to
be much worse, especially in countries where the debt is much higher.
In the 1920s and 1930s, the centre of the world moved from the UK to the
US, primarily due to financial problems and mistakes made by the
politicians. The same thing is happening now, and the centre of the
world is moving from the US to Asia, exasperated due to the financial
crisis and mistakes made by politicians. In the 1930s, US was a creditor
nation, but it suffered badly, but not as badly as some of the European
nations. Asia will suffer the next time around, but the West will
suffer even more. I would rather be with the creditors than with the
countries (that) have huge debts." - in Live Mint
For instance, in 2001 and 2002, there were economic problems in the world and they hurt, but they were not that bad. The next one came in 2007-08 and it was much worse because the debt had risen by then. Central banks, especially the American central bank, started printing money and everything felt better for a while. Then the problem came again and central banks led by the Americans, and governments led by the Americans, again ran up even more debt and continue to do so. Many of us feel better, especially the ones getting the money, but, overall, it is worse now and the situation continues to deteriorate because the debt is so much higher now. The next time we have a slowdown, it is going to be a lot worse. In America, the debt quadrupled and a lot of it is garbage—we are floating on an artificial sea of liquidity, and it is wonderful if you are in the right boat.
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