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Bank Reserves Are The Key To A Stable Economy
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Today, our financial outlook is guarded; preliminary indications are that the economy is slowing, which generally means lower income. Combined with those higher debt payments as old low-interest debt is rolled over to new higher debt, this will squeeze many highly leveraged corporations and individuals into falling behind in their monthly payments. This combination of lowered income combined with higher interest expense is a sure-fire formula for a banking crisis.
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