marginal productivity of debt is now negative
"In view of the fact that the marginal productivity of debt is now negative
we can see that the damage-control measures of the Obama administration,
which are financed through creating unprecedented amounts of new debt,
are counter-productive. Nay, they are the direct cause of further
economic contraction of an already prostrate economy, including unemployment."
"It follows that price rises are unsustainable, as the consumer is unable to pay them.
As a consequence the retail and wholesale merchants are also squeezed. They have to retrench.
Pressure from vanishing demand is passed on further to the producers who have to retrench as well.
All of them are experiencing an ebb in their operating cash flow.
They lay off more people, aggravating the crisis further as cash in the hand of the consumers is
diminished even more through increased unemployment.
The vicious spiral is on."
[
link to www.gold-eagle.com]
For those of you who have never read Antel Fekete let me just say this.
I have read him for over a decade and he is spot on in his analysis.
With the information in this one article you now have a bright lamp
to light the dark closet of economics.
Your policiticians were and are the cause of the global economic destruction.
Therefore any and all attempts by the governments of the world to
try to stop the economic meltdown has the same effect
a playing russian roulette with a bolt action rifle.
