- With corporate debt levels higher than before the financial crisis and the quality of much of this pretty low, the last we need is a sudden retreat in cash flow.
- But that is exactly what is happening and this could lead to a financial crisis and a Fisherian debt-deflationary spiral.
- Under certain specific circumstances it could even morph into the opposite, accelerating inflation.
- None of this is inevitable but we require bold action and/or luck on the medical front.
Source: The Mother Of All Cash Flow Retreats | Seeking Alpha