Source: Cobden Centre
by MarkGB
“The Federal Reserve, along with the other CBs, has spent the past 8 years desperately trying to create inflation. This is because the thing that scares the hell out of them is deflation. Deflation is the ‘monster’ because in a debt based monetary system new debt has to be constantly created to keep asset values expanding. When asset values shrink, the debt acquired to ‘buy’ them doesn’t – revealing what was hidden all along – insolvency – which leads to contagion – which leads to bailouts – and the process starts all over again. Except that this time the CBs are afraid the monster will be too big to bail out. For once they are right.” (09/02/25)
https://www.cobdencentre.org/2025/09/how-the-world-really-works/