Thread by @srinicaps

The #FED and all major Central Bankers in the world believe that relentless credit expansion fosters greater economic growth and full employment

The fact is Lower interest rates fosters more debt issuance

What #FED , #SNB , #Euro and #BOJ are been doing is that when economic growth falters for any reason the first action is to push rates lower

But the fact is that there is a limit to how much debt the household, business, and government sectors of the economy can tolerate

To give an example the national #GDP of USA has grown 21X since 1969 and the total Debt including households, businesses, governments, and financials is up by 51X

Also remember aggregate economic growth comes from the sum of labour hours employed and productivity improvements

Today USA is employing barely 60% of the available adult labour hours in the US economy, this means there are more than enough latent labor hours available to support pre1969 levels of growth

Most of the jobs in late 60’s and early 70’s were Full time & today most are parttime

Capital and technology have been misallocated and wasted, potential labor resources have been inefficiently deployed or not at all

That’s what the massive expansion of debt, the systematic falsification of interest rates, and financial asset prices confected by the Fed

Central Bankers has wrought

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