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Friday 1 May 2015

Are we Facing an Economic Disaster?

I strongly believe that central bankers’ actions have put the global economy today in a very dangerous position.

Interest rates are too low. As a result, we’re seeing a replay of the mid-2000s – when interest rates were too low given economic growth, and as a result, the bubble in US subprime property was inflated. And when it blew up, it triggered the global financial crisis.

I am afraid a similar thing is happening today. Even though the US economy is growing, interest rates are lower than they’ve ever been. It’s hard to argue that current conditions justify that level of emergency intervention.

For More:  Are we Facing an Economic Disaster?

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