US & Europe Headed For ‘Japanificaton’
4/29/19
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By John Mauldin,
from Maudlin Economics,
4/26/19:
How I Learned to Love the Debt.
The US, Europe, and most of the developed world on are the road to Japanification. Like I wrote last week, we will see financial repression, ever increasing deficits, slower growth, etc. Essentially, the rest of us will begin to look like Japan with its astronomical deficits and ultra-dovish monetary policy.
I tried to emphasize this is not the end of the world. It’s not the best world, either, but we’ve gone too far to come back now. There is no significant constituency for any of the things it would take for the US government to balance its budget. Neither party wants to reduce the deficit, and the MMT fans want to make it even bigger.
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