Every summer we can rent a cottage
In the Isle of Wright
If it's not too dear
We shall scrimp and save
As noted many times on these pages, capitalism is not possible without capital. Capital is not possible without savings.
The world is drowning in debt. By definition, this means that there are no savings on the net. Such a situation would be impossible under capitalism.
The primary culprit is central bank policy focused on suppressing the natural rate of interest to zero or even negative levels.
Bill Gross is among the investors who are beginning to figure out the catastrophic potential of this policy.
No savings, no capitalism.