“While it may appear the post-Bretton Woods covenant is a win-win pact, there is a massive cost accruing to everyone involved. The U.S. has too much debt. As such, it has become increasingly dependent on low-interest rates to spur debt-driven consumption and to pay interest and principal on existing debt.”
USAGOLD note: Liebowitz lays out the dangers to a global economy of a Fed held hostage by the high level of debt – public and private. This analysis offers a good explanation as to how that became the case…… and why time is running out.