The Financial System Limit
The world's real debt burden
by David Kauders
This title was previously available on NetGalley and is now archived.
Pub Date 23 Aug 2021 | Archive Date 7 Sep 2021
Sparkling Books Ltd, Sparkling Books
"Neither Keynes nor his disciples foresaw the eventual creation of unaffordable debt nearly a century later."
Why were economies sluggish before the pandemic arrived? Why have interest rates paid by businesses and households been rising even though deposit rates are nil? Does the policy of bailing out economies, now followed by most governments and central banks, bring any dangers?
In The Financial System Limit, British investment manager David Kauders FRSA puts forward three radical theories which together provide the answers to these questions. These theories show that Keynesian economics has gradually turned from a benefit to society, into a damaging scheme. Other economic policies are also not addressing the fundamental problem, which is the world’s inability to afford private sector debts already created.
The author challenges the existing academic and political consensus about how economies should be managed. The old arguments about sound money versus stimulus, as well as contemporary arguments that governments controlling their own currency can create as much credit as they wish, are fundamentally inappropriate to a world in which private sector debt far exceeds public debt and carries a higher, rising, interest cost.
Whether you are a concerned individual, an academic, politician, banker or even a policymaker, read about a different view of the current financial orthodoxies, one that will provoke serious debate and even action.
“Radical thinkers might have a point” was how the Financial Times described David Kauders’ first book The Greatest Crash: How contradictory policies are sinking the global economy. This new book offers further original thought.
A Note From the Publisher
"One of the most fascinating books I've ever read" - NetGalley reviewer
"The author provides a historical view of how we reached the point where the level of global debt is unsustainable and now compounded by a global pandemic. The book is understandable by those without a deep financial background.
"Kauders, who has decades of experience as an investment manager makes the case for the difficult situation we, as global citizens, are confronted with." - Librarything reviewer
"The book pleas to measure interest cost on total debt in relation to economic output. A deep recession and consequential financial upset were inevitable in a world that could not resolve the conflict between stimulus and austerity, a world that remained addicted to debt, a world that refused to admit the limit to the growth of debt caused by the cost of servicing it. That's what David Kauders wants to highlight." - Hank van der Klis, Netherlands
"Credit to Kauders for sharing his observations, experience and proposing solutions." - Librarything reviewer
There are three print editions, see notes
Australia and New Zealand edition has been published (9781907230783). This paperback edition is available outside US and UK
US edition has been published, 9781907230769
Average rating from 5 members
One of the most fascinating book I've ever read ! It is like a travel in time, the numerous extracts of letters from well introduced legendary people is cleverly linked to our emotions, as a reader. I am recommending this book, and will, It is a must in one's library and to be transmitted to next generations.
A very good book about the financial system. How debt works. How debt works and has worked for and against various countries at various times. Highly recommended!
This book by investment manager David Kauders, analyzes the current economic system, and offers some criticisms and suggestions. The book has four parts, with ten main chapters Part One describes the current problems with the world economic system, Part Two has some case study examples, Part Three reviews existing proposed solutions and their limitations, and Part Four describes the effects of the pandemic, and deflation. The book starts with a “Definitions and Explanations” section, which is helpful in clarifying some terms and concepts. I feel like I should stress that if you do NOT have some background in the financial sector, or if you haven't studied economics before, this might be a slow and difficult read. I actually found it beneficial to go back and reread two other economics for beginners books, before coming back and finishing this one. I wanted to make sure I had a firm grasp on the concepts, and what the conventional strategies were regarding the central banking system, before trying to digest Kauders' take on the matter. One of the author's main points seems to be that credit can not be created forever, because there reaches a point at which the debt level of a society makes repayment of the debt impossible. Kauders discusses this and other ideas, including the economic strategies of governments to deal with the pandemic, the true cost of debt, and economic cycles cause by central banking policies. His ideas about modern monetary theory and pensions are interesting, although some of his recommendations seem very unlikely to ever be adopted. The book is actually very short, but again, if you are not familiar with these economic theories then it could still take a while to get through. I thought that Kauders made some good points, but I also feel like I need to study a bit more before I'm informed enough to agree or disagree with him. If you do have a background in economics, and would be interested in hearing some unconventional ideas , then you might want to read this book.