Global debt enters terminal velocity mode: Why central banks have no intention of slowing their public and private debt binge.

Sunday, May 11, 2014
By Paul Martin

Mybudget360.com

Central banks around the world are following one core mission. That mission revolves around expanding debt to goose equity markets and attempting to solve a debt crisis with more debt. Even the more conservative European Central Bank bowed down to easy digital money printing by announcing they too would follow in the footsteps of the Fed and Bank of Japan. Global banking is now fully addicted to non-stop debt. Every dollar of debt is having a smaller impact on what it can do to the real economy. The Fed’s balance sheet is now well over $4.3 trillion and while talks of tapering are made in public, there is no visible action being taken to show this is the intended goal. At the core of the global crisis was an expansion built on too much debt. Banks attacked this issue as one of liquidity but in reality this was a crisis of solvency. Banks never dealt with writing down assets but have decided to use modern day inflation methods to boost banking profits at the expense of working class families. Global debt has now reached a terminal velocity mode and central banks have no choice but to continue to expand their balance sheets.

Central banks follow one mandate

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