Hidden Forces cover image

How to Survive in the New Economic & Financial Order | Russell Napier

Hidden Forces

CHAPTER

Why Is Leverage a Problem?

When we get a recession, cash flows decline and the ability to service debt declines. If you then get mass defaults on debt, you take you towards bank bankruptcies. We all want to avoid depressions, obviously because ofth just human consequences of depressions. But i think central bankers it seared into their memory that what came after the great depression was a world war. So there are great fears of social, political dislocation associated with a great depression. And that is why governments will talk of this. It is just worth saying to meto that we had very high debt o gt p ratios afterward war, too, and the government decided to inflate those away. This was

00:00
Transcript
Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner