Thought provoking interview of Russell Napier –
- The power to control the creation of money has moved from central banks to governments
- The great problems we have – energy, climate change, defence, inequality, our dependence on production from China – will all be solved by massive investment; this capex boom could last for a long time
- By telling banks how and where to grant guaranteed loans, governments can direct investment where they want it to, be it energy, projects aimed at reducing inequality, or general investments to combat climate change. By guiding the growth of credit and therefore the growth of money, they can control the nominal growth of the economy.
- Engineering a higher nominal GDP growth through a higher structural level of inflation is a proven way to get rid of high debt levels; that was the way it was done in the decades after World War II
- 15-to-20-year phase of structurally elevated inflation and financial repression
Source: The-world-will-experience-a-capex-boom
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