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When Market Meltdown? News of the Money-World #45

NZ Everyday Investor

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The Endty Financial Stability

Central banks are responsible for this mess, putting aside whether they were justified or not. They create more demand by inflating the money supply during a time where there's a reduced supply of so many goods. If you go through door one arm and you ease up on financial conditions,you potentially end up in a world of high inflation and high longa inflation. Door two is a significant tightening in financial conditions. That means that people are going to lose their demand or dry up as the money supply dries up. People ar ging to start spending less, and then it’s going to go throughat a bit of a cycle. It's pretty hard to see how now it doesn

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