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Harry Dent On 'kicking The Can Down The Road'

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I listened to an interview of Harry Dent by Michael Covel

http://www.harrydent.com/

http://www.michaelcovel.com/

it is podcast 150 on the second link - I did make a tiny url for it, but this site **** it out

He prefers debt forgiveness (by virtue of the lender being allowed to go skint rather than than being bailed out by the taxpayer) over QE

He cited some figures about the US: US$1trn QE + US$1trn additional federal debt has generated GDP growth of US$350bn

and, maybe unsurprisingly, suggested that wasn't such a good return and that without the US$2 trn being spunked up the wall at very low return, the US would still be very much in recession

further, that the US$2trn had simply kicked the can down the road, meaning that the next drama would be bigger, last longer and be more painful for more people than if 2008 had been allowed to play out without government interference.

hard to argue with the guy really

Edited by JPJPJP

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He prefers debt forgiveness (by virtue of the lender being allowed to go skint rather than than being bailed out by the taxpayer) over QE

But money is debt so if all debt was wiped out there would be no money. Only real assets such as land would exist and we would be back to medieval Europe all over again.

And if after the debt forgiveness banks were still able to lend money at interest we would be back in the same position in 60 years.

A complete reform of the monetary system is needed.

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And if after the debt forgiveness banks were still able to lend money at interest we would be back in the same position in 60 years.

A complete reform of the monetary system is needed.

Then why did the system work for hundreds of years before that?

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Then why did the system work for hundreds of years before that?

Isn't the point being made in the Podcast that the system was not allowed to work this time? There have been booms and busts in the past but it's only in recent times we have the Central banks who sit idle as the booms expand but rush in to stop them collapsing when their time has come.

So we no longer have a 'boom and bust' paradigm- we seem to have a 'boom and bailout' paradigm in which only expansion is permitted and no contraction will be tolerated.

Perhaps we can have an infinitely expanding universe of credit as the natural extension of the 'big bang' that marks the origin of this new era of astronomical money printing? So in the new paradigm debt is never really paid down, nor is it extinguished- it simply expands forever in all directions until the question of bubbles ceases to be relevant because the entire financial universe will be nothing but a vast bubble that encompasses everything, becoming the backdrop against which all transactions must be measured.

Certainly the present UK Government seem to have decided that all that de-leveraging/ default stuff is far too difficult and unpopular and instead opted for more credit creation via Help to Buy- so the direction of travel is set- 'to infinity-and beyond!'

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