Debt Melting Pot, Steam and The Lid of Central Bank
But the problem is the liquid inside the #cesspool pot, that can not #evaporate (we call it #inflation under the image of the #steam) because of the #lid of the CBs (what they call properly #ZIRP and #NIRP),but only reduced via higher #tax and lower #expenditure, what we call a #surplus … or #restructuring
- A larger State means 2 basic and real things: more debt more tax
- The #bill is fully on the shoulders of the country’ #residents
- and the #inflation is in the #currency #debasement
- Heavily indebted countries are “on a bed of nitroglycerine”
- The governments’ #borrowing and #deficit and #debt in the first five months of 2020-21 are many times higher than the previous record for the same point in the financial year.
- That is another reason that bets on higher interest rates are likely to come unstuck: the sheer scale of government borrowing all but forces central banks to keep a lid on bond yields
