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Print: The Central Bankers Bubble, by Lindsay David
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The biggest economic disasters always include the breakdown of an IZNOP business model.
Are the central banks in Japan, Europe, and America the new fiscal heroin dealers?
Since bottoming out in the 2008 Global Financial Crisis (GFC), the global economy has changed in a big way. The investment community once possessed a logical mindset that involved buying on the wings of good economic news and selling when bad news hit the headlines. And then it transformed into a world where the good news became bad news and bad news became good news for the global markets. More specifically, while the global economy has struggled to find its feet since the GFC, the value of assets across the globe have increased significantly relative to worldwide working wages. This has forced society to invest more . . . but receive less in income.
Enter our central bankers. We as global citizens are supposed to trust these individuals to make logical financial decisions. Lindsay David argues that while central banks have been printing trillions and driving interest rates down to feed the fiscal heroin addiction of investors, more retirees than ever have been forced onto government pension plans—and this has increased the debt profile of many governments. Alternatively, retirees as a group could have been an asset to many highly leveraged governments . . . if interest rates had been higher.
Furthermore, since 2008, central banks of the nouveau riche world, more particularly China, have adopted precisely the same economic strategy that got Japan, America, and many European nations into financial messes in the first place. They’ve adopted the IZNOP business model—a business model wherein toxic credit fuels a rising real estate market.
Can the American government achieve a budget surplus by 2017? Is France the country that will make or break Europe? Will China become a $77 trillion economy by 2027? Will the Japanese government ever repay its debts? Why does land in a small remote Australian desert town cost more than land in the hills of Malibu, California?
Lindsay David answers these questions, and he offers two key recommendations to stop future central bankers from ever having to print money again to buy up debt—a practise that leads nations to live beyond their means. Unfortunately for central bankers around the world, there is no easy fix for the mess they got this world into.
- Sales Rank: #763737 in eBooks
- Published on: 2015-02-27
- Released on: 2015-02-27
- Format: Kindle eBook
Review
"Print: The Central Bankers Bubble" is an outstanding read that is likely to be studied long after the next GFC hits regardless of its severity and scope. (Tony Locantro- Locantro Asset Management)In order to shape the future we need to understand the lessons of the past. An enjoyable and accessible read for practitioners and amateurs alike on a subject where an understanding of historic and practical/reasonable policy applications are both hugely important. (Chris Bailey, Financial Orbit)
About the Author
Lindsay David is the founder of LF Economics and a co-founder of clean technology company GreenRigCo. The former strategy & business development consultant holds an MBA from IMD Business School.
Most helpful customer reviews
3 of 3 people found the following review helpful.
This book is fantastic. Like his other book
By Brian ODonnell
This book , "Print: The Central Bankers Bubble" is fantastic. Like his other book, "Australia; Boom to Bust". Both books written by Lindsay David are a must read for anyone interested in learning how and why the economy got into the state it is in. . I just hope Lindsay writes others, from Brian ODonnelll, The New Zealand author of the books, "How to be Happy and Healthy": and "How to be Happy and Successful in Selling".
1 of 1 people found the following review helpful.
No nonsense take down of the never ending QE model of economic "management". Well worth the time.
By Travis Dowling
You really have wonder if the constant boom and bust cycle of housing prices is a choice made by the elite to keep the plebs under control. I don't buy the idea that they don't know what they are doing, I think they know. The system is working as intended. Anyway a great read - well worth the time.
0 of 0 people found the following review helpful.
By the end of 2017 there will be those who read it and those who wish they had.
By Xenon 6
This book provides a well researched and persuasive opinion on why the world, and especially raw material exporters like Australia and Canada, are heading for a crash. China has done massive over development of their real estate market that must come to an end very soon.
Chinese really don't understand real estate. Real Estate is only of value because of the rental income. The present day value of a property is the discounted value of all future rents less taxes and maintenance so not putting tenants in hoping for a capital gain is just misunderstanding.
The Central banks of the world have ruined much of the economy with their low interest rate policy and the financial distortions it creates. Millions of retirees are unable to live on their savings due to the low interest rates so are pushed on to the Government pensions and live in poverty due to this mis-guided policy. Is the low interest rate policy stupidity or corruption?
Read this book now. You will be glad you did.
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