Posted by Clive Maund

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The so called economic recovery since the 2008 financial crisis is not genuine – it is a veneer created by manufactured money. It is analogous to an individual who is already deeply in debt being suddenly granted a massive increase in his line of credit and going on to live the high life until he arrives at his new debt ceiling. The chief planks of this policy of precrastination are massive increases in the money supply coupled with rock bottom interest rates to mitigate the impact of ballooning debt. There are only two ways that this can end. One is that time is called on the debters by choking off the monetary spigot, the other is that the money supply is ramped exponentially to keep the party going and put off the day of reckoning as long as possible. The former will lead to an economic implosion, while the latter will lead to hyperinflation. Given the instinct of politicians for survival it is reasonable to conclude that they will choose the latter course