The carrot of self-sustaining recovery will remain out of reach, for the policies presented as the path to recovery preclude the “virtuous cycle” everyone desires.
by Charles Hugh Smith, Of Two Minds:
The enduring myth of the post-2008 era is that central-planning money printing and deficit spending would soon spark a self-sustaining recovery. Once consumers and businesses stepped up their own borrowing and spending, the central bank and state would then pare back money printing and deficit spending, as the increase in private-sector spending would fuel further borrowing and spending, i.e. become self-sustaining.
The reality is the mythical self-sustaining recovery is the carrot dangled in front of a credulous public: though we’re constantly reassured “we’re almost there” (the promised land of self-sustaining recovery), the mythical recovery remains out of reach, no matter how much money is printed or borrowed and blown in fiscal stimulus.
There are several key reasons for this.
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