Doomed If We Do, Doomed If We Don’t
by Charles Hugh-Smith
ZeroHedge.com
02/12/2014
Trying to force simplistic results out of complex systems inevitably generates unintended consequences. Liquidity and credit expansion act like pressure in a closed system; central planners look at the site of the last financial break and see no leaks, so they assume they’ve got the system under control. But the next failure in the system will occur where no one is looking–the points in the system that everyone assumes are “safe.” The system is doomed if central banks continue creating trillions of dollars in new leveraged credit and liquidity to keep the system from imploding, and it is also doomed if they cease creating new leveraged credit (i.e. taper their geometric expansion of credit). Doomed if you do taper, doomed if you don’t taper.
The Rest…HERE
