The main reason the Western economies have no ability to tolerate interest rates above zero percent is because the GDP has become a “pecuniary driven based existence.”
Finances have to flow constantly from point A to point B, which I akin to the old well know process of, “Beating the check to the bank!” or “Robbing Peter to pay Paul!” The system would grind to a halt, as it did in 2008 as banks started to hoard money and other assets…
Another implication of a pecuniary existence is that most GDP’s inordinately depends upon feigned asset bubbles, which can only be nurtured in the negative interest rate environments, these have been set up very much like a greenhouse growing vegetables in the winter. As soon as interest rates climb, the asset bubbles implode or as per veggies in the cold, open the door and they wilt and die…
The over-evolved based economies of the West can never increase interest rates because pecuniary Armageddon will result from the crushing interest payments that would ensue. Though without a doubt, even at zero interest, the debt load has already maimed the social structure and destroyed the monetary base beyond repair…
Simply put; raise interest rates by the fed and the interest payments soon will exceed even the military budget of the U.S.A., not including the rest of the western world doing the same. It would be true financial Armageddon…
Thus the dollar and more so the petrodollar can never be defended. Thus it is already dead – they just haven’t laid out the carcass yet…
Post by Kyle Keeton
Windows to Russia…