We live in an age of economic shocks, or an Age of Turbulence if you ask Alan Greenspan. Households have been encouraged to take on record amounts of debt during an historic low in interest rates. Now, as interest rates are set to rise, the value of assets purchased with debt will fall. There are going to be an awful lot of very upset former homeowners in the Anglo Saxon world.
It’s especially vexing when the “surprise” interest rate shocks come from central bankers themselves, the men who are charged with maintaining price stability. They seem to be doing anything but maintaining stability lately. What gives?
To answer that question, we point you to an interview Alan Greenspan recently did with American comedian John Stewart. Greenspan was accidentally candid in answering Stewart’s fundamental questions. Greenspan casually revealed the great swindle that is modern central banking.