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What Really Causes Recessions | Chris Casey On How Central Banks Trigger Every Economic Downturn

7 snips
Jun 2, 2025
Guest
Chris Casey
In this engaging discussion, Chris Casey, founder and managing director of Windrock Wealth Management, unveils the surprising role central banks play in triggering recessions. He argues that their artificially low interest rates create malinvestment, often leaving economists blind to impending downturns. Casey also highlights key indicators to watch, such as money supply and credit spreads, while advising on smart investment strategies in uncertain times. His insights challenge conventional wisdom and emphasize the need for a deeper understanding of economic cycles.
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INSIGHT

Central Banks Trigger Recessions

  • Recessions are primarily caused by central banks expanding the money supply and artificially lowering interest rates.
  • This distorts interest rates, leading to malinvestment, which triggers inevitable economic downturns.
INSIGHT

Fed Actions Perpetuate Cycles

  • Federal Reserve economists often lack a coherent theory of what causes recessions.
  • Their policy responses, like bailouts and printing money, perpetuate the cycle and ensure future recessions.
INSIGHT

Fundamentals Trump New Trends

  • Despite technological and financial changes, the fundamental cause of recessions remains unchanged.
  • Economic fluctuations in specific sectors don't affect the overall recession caused by distorted money supply and interest rates.
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