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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (103576)	11/1/2013 9:34:55 AM
From: dvdw©	Read Replies (1) \| Respond to of 217749

From your report....this outtake represents its most important point. Want to comment on why but don't have time now, so am adding the outtake which can be later replied to. Thanks BTW for posting it, Fisher was able to make this connection because he understood Eugen von Böhm-Bawerk’s brilliant insight that debt is future consumption denied. Also, we have the benefit of Hyman Minsky’s observation that debt must be able to generate an income stream to repay principal and interest, thereby explaining that there is such a thing as good (productive) debt as opposed to bad (non-productive) debt. Therefore, the decline in money velocity when there are very high levels of debt to GDP should not be surprising. Moreover, as debt levels increase so does the risk that it will be unable to generate the income stream required to pay principal and interest. Unintended Consequences