Another gem from Michael E. Lewitt, this time in his July, 2013 newsletter:
“The policies that are being employed to create the appearance of economic and market stability are not effectively addressing the underlying symptoms of economic malaise; in fact, they are exacerbating them. Debt is being used to cure a debt crisis in the hope that fiscal policies will be implemented that will foment sufficiently high economic growth to create the income necessary to service and ultimately repay that debt. But even in the best of all possible worlds such an outcome would be a long shot since the sheer amount of debt being generated to keep economies afloat is too large to be serviced or repaid. And as we are all painfully aware, we don’t live in the best of all possible worlds – we live in a world populated by corrupt and narcissistic politicians and business leaders who refuse to effect the necessary fiscal reforms that would at least give monetary policy a chance to work. As a result, the post-crisis world has been left more indebted and more interconnected than the pre-crisis world. The tails may be buried a little deeper than they were, but they are fatter than ever.”
