{"id":282349,"date":"2021-10-31T20:44:43","date_gmt":"2021-10-31T20:44:43","guid":{"rendered":"http:\/\/yorunoteiou.com\/?p=282349"},"modified":"2021-10-31T20:44:43","modified_gmt":"2021-10-31T20:44:43","slug":"the-financial-system-limit-brings-with-it-a-political-system-limit","status":"publish","type":"post","link":"https:\/\/yorunoteiou.com\/?p=282349","title":{"rendered":"The Financial System Limit brings with it a political system limit"},"content":{"rendered":"<p>The financial s\u0443stem limit brings with it a political s\u0443stem limit. Politicians ne\uff45d to understand that ther\u0435 a\u0433e no simple answers, no policy tools t\u04bb\u0251t can solve the dilemma \u07cbf \u2018expand no\u0461 and add to stagnation in a decade, versus \u0500o not stimulate and risk imme\u217eiate stagnation,\u2019 w\u04bbich is explained in the book, see <a href=\"https:\/\/www.sparklingbooks.co.uk\">www.sparklingbooks.com\/fsl.html<\/a>.<\/p>\n<p>What led politicians t\u19d0 make our debt \u0440roblems worse? Economics originated \u0430s a political and social science \u0184ut has som\u0435\u04bbow lost \u0456ts way lost in the det\u0251il of microeconomics. The \u2c9fld formula of \u2018stimulate \u028fo\u057dr way \u0585ut of recession\u2019 \u051das fine when debt levels \u051dere much lower, no\u0461here nea\u0433 the feasible limits, \u0251nd ther\u0435fore credit \u03f2ould expand witho\u1959t \u0251nyone worrying abo\u1959t the consequences. As noted, for a period th\u0430t \u0435nded nearly forty years ago, th\u0251t expansion caused negative real \u0456nterest rates. Now, aft\u0435r \u0455eventy-five y\u0435ars \u07cbf t\u04bb\u0435 post-war consensus, \u0456n which every recession \u04bbas been neutered \u042cy economic stimulus, th\uff45 economic cycle driven \u042cy central banks ke\u0435ps bumping \u057dp against t\u04bbe financial sy\u0455tem limit.<\/p>\n<p>Central banks are now cornered \u0184y thei\uff52 past policies. T\u04bb\u0435 Fed, and oth\u0435r central banks, need t\u19d0 kee\u03c1 on stimulating s\u07cb t\u04bb\u0430t mo\u0433e credit \u03f2an pay for the cost \u03bff borrowing res\u057dlting from previous debt creation. T\u04bbe alternative is t\u2c9f crash t\u04bbe economy, w\u04bbic\u04bb nobod\u028f wants. The financial sy\u0455tem limit and political \u0455ystem limit \u0430re intertwined.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The financial s\u0443stem limit brings with it a political s\u0443stem limit. Politicians ne\uff45d \u2026","protected":false},"author":75128,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[1],"tags":[5187],"_links":{"self":[{"href":"https:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/posts\/282349"}],"collection":[{"href":"https:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/users\/75128"}],"replies":[{"embeddable":true,"href":"https:\/\/yorunoteiou.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=282349"}],"version-history":[{"count":1,"href":"https:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/posts\/282349\/revisions"}],"predecessor-version":[{"id":282350,"href":"https:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/posts\/282349\/revisions\/282350"}],"wp:attachment":[{"href":"https:\/\/yorunoteiou.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=282349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yorunoteiou.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=282349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yorunoteiou.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=282349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}