"The Federal Reserve has been trying to prevent deflation, writes George Melloan, but the federal government has been “engineering its cause, excessive debt.”
Global debt of all types has soared above 300% of GDP, notes Mr. Melloan.
Near-zero interest rates not only enabled government spending but also “encouraged consumers and business to releverage.
Cars are now financed with low or no-interest five-year loans.
With the 2008 housing debacle forgotten, easier mortgage terms have made a comeback.
Corporations also couldn’t let cheap money go to waste, so they have piled up debts to buy back their own stock.
Such ‘investment’ produces no economic growth, but it has to be paid back nonetheless.”"
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