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Will the Debt Crush Powell’s Volker Dreams?

The Breakdown

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Stock Market Wealth Effect

When interest rates hit zero % we still didn't want to solve the debt problem, so we started quantitative easing. So interest rates declined and asset prices recovered because the debt was easier to service. But the debt load still remained, suppressing economic growth and thus wage growth. Asset holders make it out alive, while workers suffer the consequences of the debt. Pursuing the same policies will result in the same outcome, ever increasing debt, lower economic growth, falling rail wages,. but potentially higher asset prices at the decline in growth is met with lower rates and more liquidity. I think you should give eric a follow at e p p research on twitter.

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