Fiscal Ruin
The Fed’s doctrine – New Keynesian Synthesis – has let it down time and again in this long saga, and there is scant evidence that Fed officials recognise the fact. As for the European Central Bank, it has let private loan growth contract this summer.
Lets hope not, but with deficits increasing, the debt load spiraling out of control, and no end in sight, it doesn’t look like it will end well.
