“All cost of capital globally, eventually, will have to go negative and the reason is very simple: it’s the degree of leverage and financialization that we have globally. Pretty much every country now needs 3 to 4 dollars of debt for every incremental dollar of GDP that they generate“, which in turn is a function of the “real disease” – the collapse in global productivity, driven by the exponential spread in zombie companies kept “alive” by record low rates, thanks to 10 years in destructive central bank policies meant to preserve the wealth of the 1% at any cost.
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