Edward Chancellor: "The Price of Time"
The Great Simplification with Nate Hagens
00:00
The Importance of Negative Equity in the Economy
The Reserve Bank of Australia has already announced that its equity has formally been wiped out. So either you get a situation where as far as I see it, the central banks just invert commerce, print money to operate with negative equity or the taxpayer must make good. The economy is entirely in the bubble economy, it's hooked on capital gains. And you can only produce those capital gains by ever losing monetary policy. It's not just enough to say, okay, we're not going to be as high as we would have been. We're going to have to have lower interest rates because you have to inflate the bubble.
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