{"id":51906,"date":"2020-03-22T19:16:31","date_gmt":"2020-03-23T00:16:31","guid":{"rendered":"https:\/\/olduvai.ca\/?p=51906"},"modified":"2020-03-22T19:16:35","modified_gmt":"2020-03-23T00:16:35","slug":"doug-noland-theres-no-new-bubble-coming-to-save-us","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=51906","title":{"rendered":"Doug Noland: There’s No New Bubble Coming To Save Us"},"content":{"rendered":"\n

Doug Noland: There’s No New Bubble Coming To Save Us<\/a><\/h3>\n\n\n\n

In this week\u2019s Credit Bubble Bulletin<\/a>, Doug Noland points out the ominous truth that the world\u2019s governments have run out of new financial bubbles to inflate.<\/strong><\/p>\n\n\n\n

The result, as John Rubino sums up perfectly<\/a>, “This time is different, in a very bad way<\/strong>.”<\/p>\n\n\n\n

Here\u2019s an excerpt from the much longer article,<\/a> that should be read in its entirety:<\/em><\/p>\n\n\n\n

Please Don\u2019t Completely Destroy\u2026<\/strong><\/a><\/p>\n\n\n\n

I\u2019ve been dreading this.<\/strong> In the midst of all the policy responses to the collapse of the mortgage finance Bubble, I recall writing something to the effect: \u201cI understand we can\u2019t allow the system to collapse, but please don\u2019t inflate another Bubble.\u201d It was obvious early on that policymakers had every intention to reflate Bubbles.<\/p>\n\n\n\n

There was a failure to grasp the most critical lessons from that terrible boom and bust episode:<\/strong> Aggressive monetary stimulus foments market distortions, while promoting risk-taking, leveraged speculation and latent risk intermediation dysfunction. Years of deranged finance ensured unprecedented economic imbalances and deep structural impairment. There was no predicting a global pandemic. Yet today\u2019s acute financial and economic fragility \u2013 and the risk of financial collapse \u2013 are directly traceable to years of negligent monetary management.<\/p>\n\n\n\n

I have to adjust my message for this post-Bubble backdrop: I understand we can\u2019t allow the system to collapse, but Please Don\u2019t Completely Destroy the Soundness of Central Bank Credit and Government Debt. <\/strong>Does anyone realize what\u2019s at stake?<\/p>\n\n\n\n

I don\u2019t see another Bubble on the horizon. Each reflationary Bubble must be greater in scope than the last. <\/strong>Mortgage finance was used for post-\u201ctech\u201d Bubble reflation. Policymakers unleashed the \u201cglobal government finance Bubble\u201d during post-mortgage finance Bubble reflation. Massive international inflation of central bank Credit and sovereign debt went to the heart of global finance \u2013 the very foundation of \u201cmoney\u201d and Credit.<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Doug Noland: There’s No New Bubble Coming To Save Us In this week\u2019s Credit Bubble Bulletin, Doug Noland points out the ominous truth that the world\u2019s governments have run out of new financial bubbles to inflate. The result, as John Rubino sums up perfectly, “This time is different, in a very bad way.” Here\u2019s an excerpt from the much […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1806,16861,3920,4318],"class_list":["post-51906","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bubble","tag-doug-noland","tag-financial-bubble","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51906","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51906"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51906\/revisions"}],"predecessor-version":[{"id":51907,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51906\/revisions\/51907"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51906"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51906"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}