The government must increasingly borrow and spend because private sector actors refuse to borrow in deflation; companies won't take new credit when they can't invest money at positive real rates; households won't borrow when prices are falling and cash hoarding is rational.

causalpending

Speaker

Brian McCarthy

Evidence Quote

any non-government actors don't want to take new credit because they're in deflation so the government's going to have to step in and borrow so fiscal policy is going to have to expand or the place will implode

Source

China’s Economic House Of Cards Is Collapsing | Brian McCarthyThe Monetary Matters Network
Created: 8/10/2026, 11:05:04 PM

My Notes

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