by David Kranzler
Investment Research Dynamics
Since 1971, when the world officially abandoned the gold standard, economic growth has been stimulated through vigorous applications of aggressive Central Banking monetary policies: the imposition of artificially low nominal interest and boundlessly unrestrained credit issuance. Eventually the global economic system becomes immune to the stimulative effects of low interest rates and the financial system reaches a point at which it can no longer absorb additional debt issuance.
The de facto financial collapse, nee Great Financial Crisis, in 2008 was the manifestation of these destructive financial policies. Central Banks globally shifted gears into outright money printing in order to defer the inevitable.