from King World News
Here is Alasdair Macleod’s take on the final crack-up boom.
The Final Crack-Up Boom
April 9 (King World News) – Alasdair Macleod: Commentators routinely confuse the deflationary effects of a contraction of bank credit with the inflationary effects of central bank policies designed to offset it. Central banks always ensure their stimulus is greater, so inflation, not deflation, is always the outcome.
In order to understand bank credit, we must enter the mind of a banker and understand how it is created, why it is expanded and why expansion is always followed by a sharp contraction.