Part 7/8:
Keen also emphasizes the critical role of credit in the economy, illustrating how the rise and fall of private debt significantly impacts economic activity. The historical parallels drawn between periods of economic growth and rising private credit highlight the necessity of maintaining an adequate flow of money, whether through government deficits or stable private borrowing.
A Cautious Outlook
As discussions evolve around economic strategies under Musk and Trump, the cautionary tale remains that cutting deficits without considering the broader economic context could trigger a recession. The complex interplay of public and private lending, alongside regulatory reforms, will be essential for navigating a potentially tumultuous economic landscape in the coming years.