Business Insider: Top banker warns of looming wave of worldwide bankruptcies

This is perhaps one of the clearest article I’ve read on the issue that’s on everyone’s lips. In it William White, Chairman of the OECD’s Review Committee says the most relevant question relating to the looming reality is “whether we are able to look reality in the eye and face what is coming in an orderly fashion, or whether it will be disorderly.”

Contending that easy money policy settings from the Fed, the European Central Bank and Bank of Japan “brought spending forward from the future and in the process created a dangerous cycle that is now losing its potency to spur demand”, he says flatly that “By definition, this means you cannot spend the money tomorrow.”

So, while debt has ballooned and global growth slows, the strategic question is “If monetary policy, after creating the issue, is no longer in a position to solve it, what can possibly be done to address the situation?”

http://www.businessinsider.com/top-banker-warns-of-worldwide-bankruptcies-2016-1