"Wealth creation,' is the prevailing euphemistic American interpretation," writes Dr. Kurt Richebächer. "According to reports, American households are amassing wealth in this way as never before, vastly outpacing their soaring debt growth. For us it is scandalous that policymakers and economists can propagate this nonsense without a single voice of protest... This unmistakably qualifies as 'house-prince inflation' not as 'wealth creation.'"
The bank of Alan Greenspan lends money below the inflation rate...which sets in motion a boom in real estate.
Our houses go up in price so, mistaking it for an increase in value, we take some of it to spend. The additional spending creates the impression of healthy, growing economy - which gives us confidence to borrow more. Our houses rise again...we borrow more again...and again...and again...until the imperial nation owes a total of $36.2 trillion...with an annual debt service
bill of about $1.8 trillion.
We do not earn enough money to pay the $1.8 trillion, so we borrow it too! And now our debts rise on their own...until...finally, the "fin" of the bubble arrives. Will it end in a whimper or a bang? We don't know. But we have no doubt that it will end.
Until then, we continue to enjoy this delicious delusion....
The bank of Alan Greenspan lends money below the inflation rate...which sets in motion a boom in real estate.
Our houses go up in price so, mistaking it for an increase in value, we take some of it to spend. The additional spending creates the impression of healthy, growing economy - which gives us confidence to borrow more. Our houses rise again...we borrow more again...and again...and again...until the imperial nation owes a total of $36.2 trillion...with an annual debt service
bill of about $1.8 trillion.
We do not earn enough money to pay the $1.8 trillion, so we borrow it too! And now our debts rise on their own...until...finally, the "fin" of the bubble arrives. Will it end in a whimper or a bang? We don't know. But we have no doubt that it will end.
Until then, we continue to enjoy this delicious delusion....
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