In her book Broken Money, Lyn also captures historical instances when eventually Debt leads to rising inequality. This then resolves either through violent revolution or govt actions to support the poor. "Some societies - whether it’s Babylon four thousand years ago, Athens in the sixth century B.C., or the United States in the 1930s and 1940s - manage to navigate these pivotal moments in a way that avoids violent revolution, partially resets the board, and keeps the existing incentive structures intact and functioning well. Other societies don’t, and failing to find that type of compromise often leads to much darker outcomes, such as the Russian Revolution of 1917." - Alden, Lyn. Broken Money: Why Our Financial System is Failing Us and How We Can Make it Better (pp. 270-271). Timestamp Press. Kindle Edition. .
At 19:43 onwards she says that in 1940s Govt did YCC. They made Fed buy their bonds at 2.5%. Same is likely this time as well--esp. when there is a risk of 10-year TRY going above 5%. This means Fed will buy govt assets this time (just like they bought private assets during 2008!). So Fed BS will increase again. Only that this time it will be done to support the govt, instead of the "private" segment..
In her book Broken Money, Lyn also captures historical instances when eventually Debt leads to rising inequality. This then resolves either through violent revolution or govt actions to support the poor.
"Some societies - whether it’s Babylon four thousand years ago, Athens in the sixth century B.C., or the United States in the 1930s and 1940s - manage to navigate these pivotal moments in a way that avoids violent revolution, partially resets the board, and keeps the existing incentive structures intact and functioning well. Other societies don’t, and failing to find that type of compromise often leads to much darker outcomes, such as the Russian Revolution of 1917."
- Alden, Lyn. Broken Money: Why Our Financial System is Failing Us and How We Can Make it Better (pp. 270-271). Timestamp Press. Kindle Edition. .
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At 19:43 onwards she says that in 1940s Govt did YCC. They made Fed buy their bonds at 2.5%. Same is likely this time as well--esp. when there is a risk of 10-year TRY going above 5%. This means Fed will buy govt assets this time (just like they bought private assets during 2008!). So Fed BS will increase again. Only that this time it will be done to support the govt, instead of the "private" segment..
www.citigroup.com/global/insights/back-future-lessons-u-s-fiscal-deleveraging-world-war-ii
www.linkedin.com/pulse/where-we-big-cycle-brink-period-great-disorder-ray-dalio/
ua-cam.com/video/BFa6etRCIog/v-deo.html