{"id":64743,"date":"2023-01-15T07:57:18","date_gmt":"2023-01-15T12:57:18","guid":{"rendered":"https:\/\/olduvai.ca\/?p=64743"},"modified":"2023-01-15T07:57:18","modified_gmt":"2023-01-15T12:57:18","slug":"the-evolution-of-credit-and-debt-in-2023","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=64743","title":{"rendered":"The evolution of credit and debt in 2023"},"content":{"rendered":"<h3 class=\"text-2xl md:text-3xl heading\"><a href=\"https:\/\/www.goldmoney.com\/research\/the-evolution-of-credit-and-debt-in-2023\">The evolution of credit and debt in 2023<\/a><\/h3>\n<div class=\"mt-8 leading-6 prose max-w-none md:mt-12 prose-p:text-gmy-dark prose-strong:text-gmy-dark prose-headings:leading-snug prose-headings:tracking-tight prose-headings:antialiased prose-headings:text-gmy-dark prose-a:text-gmy-dark prose-a:underline prose-a:hover:text-gmy-dark-gold \">\n<p><span dir=\"ltr\" lang=\"EN-GB\">The evidence strongly suggests that a combined interest rate, economic and currency crisis for the US and its western alliance will continue in 2023.<\/span><\/p>\n<p><span dir=\"ltr\" lang=\"EN-GB\">This article focuses on credit, its constraints, and why quantitative easing has already crowded out private sector activity. Adjusting M2 money supply for accumulating QE indicates the degree to which this has driven the US tax base into deep recession. And the wider effects on credit in the economy should not be ignored.\u00a0<\/span><\/p>\n<p><span dir=\"ltr\" lang=\"EN-GB\">After a brief partial recovery from the covid crisis in US government finances, they are likely to start deteriorating again due to a deepening recession of private sector activity. Funding these deficits depends on foreign inward investment flows, which are faltering. Rising interest rates and an ongoing bear market make funding from this source hard to envisage.<\/span><\/p>\n<p><span dir=\"ltr\" lang=\"EN-GB\">Meanwhile, from his public statements President Putin is fully aware of these difficulties, and a consequence of the western alliance increasing their support and involvement in Ukraine makes it almost certain that Putin will take the opportunity to push the dollar over the edge.<\/span><\/p>\n<p><strong><span dir=\"ltr\" lang=\"EN-GB\">Credit is much more than bank deposits<\/span><\/strong><\/p>\n<p><span dir=\"ltr\" lang=\"EN-GB\">Economics is about credit, and its balance sheet twin, debt. Debt is either productive, in which case it can extinguish credit in due course, or it is not, and credit must be extended or written off. Money almost never comes into it. Money is distinguished from credit by having no counterparty risk, which credit always has. The role of money is to stabilise the purchasing power of credit. And the only legal form of money is metallic; gold, silver, or copper usually rendered into coin for enhanced fungibility.<\/span><\/p>\n<p>\u2026click on the above link to read the rest\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The evolution of credit and debt in 2023 The evidence strongly suggests that a combined interest rate, economic and currency crisis for the US and its western alliance will continue in 2023. This article focuses on credit, its constraints, and why quantitative easing has already crowded out private sector activity. Adjusting M2 money supply for [&hellip;]<\/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":[7772,63,175,951,195,5829,536,607,661,662,6879],"class_list":["post-64743","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alasdair-macleod","tag-banks","tag-credit","tag-currency","tag-debt","tag-goldmoney","tag-money","tag-pandemic","tag-qe","tag-quantitative-easing","tag-shadow-banks"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64743","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=64743"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64743\/revisions"}],"predecessor-version":[{"id":64744,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64743\/revisions\/64744"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}