“ Isn’t it strange that credit to business and individuals is soaring and GDP growth is slowing? Based on the latest official release, GDP growth is down to around 2% from 3% in 2014, and the real time tax data that we track suggests that real growth is now less than 1%…. According to economists, credit growth and economic growth go hand in hand. According to reality it doesn’t, and in fact, too much credit apparently is associated with slow or no growth… Unfortunately, bankers are always the last to learn that lesson and since there’s been no moral rectification of the last credit bubble, we’re having another one in rapid succession …”
previous post