symmetric.world – equal access to information creates wealth
Sequoian | Shield Your Investment Risk
Description: Shield Your Investment Risk
Since Greenspan’s 1987 FED appointment, G7 central banks began signaling an interest rate policy that visibly favored using debt, instead of cash, to promote economic growth. A monetary policy that “achieved” a trinity of incompatible goals: 1. Persistently low prices & wage inflation at the suitable expense of 2. Promoting asset-price inflation, which in turn, spurred consumption, private investment, government spending, and thus: 3. GDP growth. This led us to a “ debt trap ,” as debt-to-GDP ratios must cl
This debt-driven pyramidal GDP growth scheme took $20 trillion of G7 debt to $305 trillion from 1986 to 2022. As the rollover loop grew by 1,500%, real interest rates were cut by 1,000%, from +4% to -4% , while attempts to normalize them were always retracted, as soon as higher discount rates impaired GSIB loan books upon repricing the NPV of loan collateral, whose owners could not provide the difference vs registered value.
The G7 then chose to spiral its already unsustainable rate of monetary expansion, at orders of magnitude higher speeds by injecting ~$30 trillion of fiscal and monetary stimulus into the global economy from Q1-2020 to Q4-2021, while expressly interfering with the global production process. This sent CPI to rates not seen since 1974: over 7% and PPI to over 20%. Yet, once the Ukraine war began in 2022, the G7 simultaneously stopped QE, began normalizing interest rates, and weaponized the global reserve statu
symmetric.world – equal access to information creates wealth
Sequoian | Shield Your Investment Risk