Is the hen coming home to roost?
The next recession will be caused by structural imbalances that build over time. These are situations that are often overlooked by mainstream economists since it does not fit the agenda they are trying to promote.
As we see the economy teeter, the central banks answered this by injecting massive liquidity. This coupled with low interest rates caused the economy to be propped up. It cannot remain that way forever.
Like a junkie, the challenge is that every injection losses some potency. After a decade of this, we are seeing little impact with each move. The lack of effectiveness is only moving us closer to a time when things could turn south.
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