A “paradigm,” as defined by Ray Dalio, is a time period all the way through which “Markets and marketplace relationships function in a definite means that the general public adapt to and in the end extrapolate.” A “paradigm shift” happens when the ones relationships are overdone, leading to “markets that function extra reverse than very similar to how they operated all the way through the prior paradigm.”

Previous to 2008, there have been 4 such paradigm shifts, every recognized by means of a subject matter exchange within the Federal Reserve Board’s financial coverage framework based on unsustainable debt enlargement. In 2008, we noticed the 5th and most up-to-date paradigm shift, when former Fed Chair Ben Bernanke presented quantitative easing (QE) based on the Nice Recession. Since then, the Fed has been running in uncharted territory, launching a couple of rounds of an already unconventional financial coverage with destructive results.

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