Next big crash?

[sptrawler]

The books are always balanced. The reserve bank creates a liability and buys the asset

That is o.k until your national debt far exceeds your GDP, then your currency should devalue, however when it is linked as in the EU it becomes problematic.
Also when your currency isn't floated, it becomes an issue, as with China.

 

[Value Collector]

This is a great video, by Ray Dailio.

It explains how the debt cycle affects the economy, it goes for 30 mins, So you have a chance sit down with a cup of tea and watch it.

 

[noirua]