- Become majority lender in an economy of people with assets you want.
- Encourage indebtedness by loaning generously while securing on assets of interest.
- Loosen lending standards until the assets you seek to capture are attached. (this makes the economy debt dependent)
- Once debts are significant for the bulk of the population, sharply tighten lending standards. < — Economic shock – Onset of deflation
- Backstop losses with public guarantees if possible. This is gravy if one can get it. (Fannie and Freddie guarantees, for example)
- Permit default ‘without risk’ on the assets you wish to sieze to maximize wealth transfer. (stall foreclosure, stay repossession orders etc)
- Stall the economy to maximize default positions and deplete private liquidity. < — We are here
Continue reading To Foretell The Future, Think Like a Banker