from Dollar Collapse
From J Taylor’s Gold, Energy and Tech Stocks newsletter:
I am indebted to former Federal Reserve economist Lacy Hunt for his insights in a recent interview he did with Adam Taggart that I used in my presentation on March 10 at the Metals Investor Forum. Lacy explained that massive federal debt taken on by policymakers not only cannot stimulate growth, as the Keynesians believed, but in fact beyond a certain point actually starts to result in significantly slower growth than would otherwise be the case. In his talk, Lacy provided several academic studies that documented that truth. What it means is that the United States and the Western world in general are facing a dramatic decline in our living standards. The simple explanation is that because we enjoyed so much consumption in the past through debt financing, we will be paying for it in years to come by a dramatic decline in future consumption.