Enzio's Crisis Prescription

The global economy remains characterized by an excess demand for money (banks don't want to lend) and by an excess supply of goods. Crucially, this type of "excess demand for money" is dangerous, as bank lending is driven by profits, not by central bank policy, so the question then becomes: "When will banks start wanting to lend again?" Answer: the day that they cannot afford NOT to lend anymore.

Read →

Keep reading with a 7-day free trial

Subscribe to Asia Sentinel to keep reading this post and get 7 days of free access to the full post archives.