'The [UN] report ought to be a wake-up call against the extremely counterproductive policies of central banks.'

'Instead, the report blames a free market that ought to exist, but doesn't.'

'A UN report .. mentions central bank liquidity.

..

Liquidity Driven Bubbles

Unlike their progressive MMT brethren, the authors understand some things:
<ul>
<li>There's an unsustainable buildup of debt</li>
<li>There are huge asset bubbles</li>
<li>Cheap liquidity stretched valuations to extreme levels</li>
</ul>
Explosion of Debt

<blockquote>'Private debt has exploded, especially in emerging markets and developing countries, whose share of global debt stock increased from 7 per cent in 2007 to 26 per cent in 2017, while the ratio of credit to non-financial corporations to GDP in emerging market economies increased from 56 per cent in 2008 to 105 per cent in 2017.' - UNCTAD</blockquote>

..

Synchronized Property Bubbles

<blockquote>'The synchronized movement of equity markets across the globe is one indicator of this. While property price movements in different countries have been less synchronized, they have also turned buoyant once again after some years of decline or stagnation after the Great Recession.' - UNCTAD</blockquote>

..

Unsustainable Levels

<blockquote>'While asset prices have exploded to unsustainable levels, nominal wages increased by much less, and stagnated in many countries. This has led to further increases in income inequality, which implied that sluggish household demand could only be boosted through renewed debt bubbles.' - UNCTAD</blockquote>

..

The authors look at symptoms of problems as if they are in fact the problems.

Instead of blaming central banks and the lack of a gold standard to enforce trade, the authors blame "hyperglobalization" a symptom of the problem that escalated the moment Nixon closed the gold window.

Shortly after Nixon ended gold convertibility, global credit exploded as did deficit spending, and monstrous never-ending trade deficits.

..

Damning Blast of Central Banks

The report ought to be a wake-up call against the extremely counterproductive policies of central banks.

Instead, the report blames a free market that ought to exist, but doesn't.'

- Mike Mish Shedlock, UN Report Cites Central Bank Liquidity Bubbles, Loose Money, Debt Expansion, October 2, 2018



Context

'..Dalio said the next crisis won't be a big bang-type affair..'

'When the next recession arrives, they’re not going to know what hit them.'

'A global crisis in the current backdrop would make 2008 seem like a walk in the park.'


'..monetary knowledge .. of currency reform under difficult conditions you have to go to Carl Menger.'

(Haptopraxeology) - Humans Are Underrated '..the skills of deeply human interaction .. Learning to be more socially sensitive..'