12/20/2014 - Financial Repression Creating System Bias and Noise
“The current capitalism suffocating regime of Keynesian central banking and extreme financial repression has created systematic bias and noise .. These distortions are the result of mis-allocations and malinvestments reflecting artificial sub-economic costs of debt and capital. The resulting bubbles and booms, in turn, cause highly aggregated measures of economic activity to be flattered by the unsustainable production, spending and investment trends underneath at the sector level .. Bubble finance does not create growth; it funds phony booms that end up as destructive round trips .. The meaning of the oil crash is that the central bank fueled bubble of this century is over and done. We are now entering an age of global cooling, drastic industrial deflation, serial bubble blow-ups and faltering corporate profits.”
– David Stockman
