When’s the Next Shoe Going to Drop?
Real Vision: Finance & Investing
00:00
The Dangers of High Inflation Recession and Financial Instability
We are entering a visual cycle between high inflation recession and financial instability, feeling on each other. And we're also in a world in which there is so much private and public debt that the attempt of central banks to raise interest rates to fight inflation causes not only the risk of a hard landing of the real economy, but it causes the risk of financial instability. If you're going to have financial instability, that's going to cause a credit crunch. It's going to make the recession more severe. The ratios that are already high become more unsustainable as incomes and ravages fall.
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