Entirely wondrous

And this time the prospect of anything positive coming out of that readjustment programme looks remote precisely because last time most sleep-walked into the crisis. This time we have no such excuse.

The trade wars are deliberate.

So too is Brexit.

As are inappropriate interest rate rises.

And a debt boom.

If we’ve a debt boom then interest rates aren’t inappropriate, are they?

6 thoughts on “Entirely wondrous”

  1. Anyone commenting on the extremely small, barely noticeable rate rises of recent times who does not seem aware that there is normally a much closer relationship between growth, interest rates and inflation than exists now is not worth reading. What a surprise that el capitán patata falls into this category

  2. Murphy wanders, nay blunders, blissful confident and strident, through all the fields of human endeavour, unburdened and untramelled by any of the heavy and inconvenient weights of expertise, competence or knowledge.

  3. If we’ve a debt boom then interest rates are inappropriately low and increasing interest rates is appropriate.


    I still blame Alan Greenspan for everything, but what do I know, not being a Professor of something or other at the University of Aldwych Tube Station (clsd.).

  4. The ‘ debt boom ‘ is a manifestation of the inability of labour to maintain any kind of equilibrium with capital which has been true for the last thirty years. If interest rates increase even the attempt to keep up with capital will be diminished. So RM is right . Monetary policy of the old school is long dead. QE saw to that. This is simple logic.

  5. @ Templar555510
    NOT in thev UK
    The debt boom is a result of encouragement to borrow and successive legislation to make life easier for those who have borrowed more than they are willing or (far less often) able to repay.

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