Jul 142016
 

sheister

Zero Hedge: “Think “helicopter money” is/will be confined only to Japan, which has been sending conflicting trial balloons about this unprecedented next step in monetary policy for the past two days (first Japan’s Senkei reported that the government will be adopting “helicopter money” followed by a government spokesman denying the report, then followed by a separate Bloomberg report about a 10T yen stimulus plan, the concluding with Abe advisor Koici Hamada saying that “boosting fiscal and monetary stimulus at the same time would be effective” in Japan)? Think again.

Speaking overnight in Australia, the Fed‘s Loretta Mester said helicopter money” could be considered to stimulate America’s economy if conventional monetary policy fails.”

ddrop

Opinion: That from the same Federal Reserve that says the economy is doing well enough to consider raising interest rates.

Time to review some definitions:

  • Inflation – a general increase in prices and fall in the purchasing value of money.
  • Deflation – a general decline in prices, often caused by a reduction in the supply of money or credit.
  • Hyperinflation – price increases are so out of control that the concept of inflation is meaningless.
  • Quantitative Easing (QE) – monetary policy/printing money that is  used by central banks to stimulate the economy when standard monetary policy has become ineffective.
  • Helicopter drop, also known as helicopter money, is a hypothetical tool of monetary policy that involves printing large sums of money and distributing it to the public in order to stimulate the economy.

Helicopter money was first coined by famed economist Milton Friedman in 1969, and repeated by former Fed Chairman Ben Bernanke in 2002 as a tool to fight deflation.

So three rounds of QE didn’t work, a decade of zero interest rates didn’t work, and negative interest rates are not working in Europe; instead of fixing the problem by making government spend only what it takes in, another scheme of giving away money is making the rounds.

It won’t work either. It will create an even bigger mountain of debt that cannot be paid back and make existing money worth much less.

At the risk of repeating myself, these schemes are setting the stage for an economic shock. I don’t mean to run out and sell assets because I really don’t think that when the big collapse comes we will be here.

Revelation 6:5-6 comes after Revelation 3:10, 4:1, 6:1-2, 6:3-4.

Maranatha

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Global markets lose $2.1 trillion in Brexit rout

 Antichrist, Bible prophecy, End Times, EU, Finance, GEO POLITICS, GLOBAL ECONOMY, ObamaCare, QE  Comments Off on Global markets lose $2.1 trillion in Brexit rout
Jun 252016
 

bathday

BREXIT, The Times of Israel: “Britain’s shock vote to pull out of the European Union wiped $2.1 trillion from global equity markets Friday as traders panicked in the face of a new threat to the global economy.

Investors fled to the safety of gold, the yen and blue-chip bonds as the seismic shift in the structure of Europe left many huge questions hanging, including who will lead Britain following the resignation of Prime Minister David Cameron.

The Brexit vote sparked eight percent losses in the Tokyo and Paris bourses, nearly seven percent in Frankfurt and more than three percent in London and New York.”

Opinion: The financial markets have been supported by central banks since the first quantitative easing program began in Japan in 2001.

The Federal Reserve joined in the money printing party in 2008-9 in an effort to hold down interest rates and inject inflation to a dead economy.

QE1 led to QE2, and QE3 followed, leading to 4 trillion in debt and a still lifeless economy.

By 2014, all that fresh new money that was supposed to lead to 2% inflation only managed to get to 0.o4%. In the meantime Obamacare and tens of thousands of onerous new business regulations created the 30 hour work week complete with part-time jobs with no benefits.

As of now 94 million Americans have left the work force while unemployment reports paint a false picture of 4.7% employment. The Bureau of Labor Statistics does not count those who stopped looking for work when calculating the unemployment numbers.

Wages have not grown in the US in 40 years.

It is very early to rank BREXIT with the failure of Lehman in 2008. Central banks still have a few tricks up their sleeve and it could well be that QE4 is just around the corner.

At the end of the day, it is becoming clear that a massive global economic collapse is coming on the order of the Black Horse rider of Rev 5:5-6.

But before that happens the Church is taken up to meet Christ in the air (1 Thess 4:16-18) and the White Horse rider(Antichrist) of Rev 6:1-2 will step on to the world stage.

As Paul said, comfort one another with those words.

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Why the Fed rate talk was 'a bunch of nonsense'

 End Times, Finance, GLOBAL ECONOMY, National security, New World Order, QE, US Economy  Comments Off on Why the Fed rate talk was ‘a bunch of nonsense’
Mar 312016
 

abuela

CNBC: The Federal Reserve was never hiking rates four times this year. Investors didn’t believe it, and now Fed Chair Janet Yellen has all but explicitly acknowledged it.

Indeed, Yellen‘s blockbuster speech Tuesday assuring that the central bank would go slowly on future adjustments to monetary policy only caught some of the market by surprise. Others realized there was virtually no chance of a hawkish Fed in 2016.

Central bankers at the Fed bark but they won’t bite,” Peter Schiff.

Opinion: The economy is built on counterfeit money. Let that sink in for a moment…

The Federal Reserve borrowed/printed $4 trillion dollars that was used to buy mortgage bonds from major banks. The banks, flush with cash, bought stocks and bonds and wham-o, Batman, the third biggest bull market in history and the first bull market built on bull p..p was born.

The only way the Fed will raise interest rates is if/when foreign banks stop buying US Treasury bonds because the rate of return is not worth the risk. That happened before under Jimmy Carter when interest rates were as high as 22%.

Then, there is the matter of the $200-250 billion that the US pays to finance the $19 trillion in national debt. A rise in interest rates would further bankrupt the nation.

 

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Feb 132016
 
12.3 trillion of QE has added up to... this?

CNBC: “Central banks have been pumping money into the global economy without a whole lot to show for it other than sharply higher stock prices, and even that has been on the downturn for the past year. Growth remains anemic, and worries are escalating that the U.S. and the rest of the world are on

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Jan 222016
 
Did Mario Draghi Stop the Market Crash?

Bloomberg: “Stocks rose around the world, extending Thursday’s rebound from a 2 1/2-year low, on speculation that central banks will expand stimulus measures to counter turmoil in financial markets. Oil surged with emerging-market currencies, while haven assets retreated. European shares headed for the biggest two-day gain since 2011, the euro approached a two-week low and Spanish

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After 6 Years Of QE, And A $4.5 Trillion Balance Sheet, St. Louis Fed Admits QE Was A Mistake

 Bible prophecy, Finance, National security, New World Order, QE, US Economy  Comments Off on After 6 Years Of QE, And A $4.5 Trillion Balance Sheet, St. Louis Fed Admits QE Was A Mistake
Aug 202015
 
After 6 Years Of QE, And A $4.5 Trillion Balance Sheet, St. Louis Fed Admits QE Was A Mistake

Zero Hedge: “As you’re no doubt aware, the Fed is fond of using the research departments at its various branches to validate policy and analyze away bad economic outcomes. For instance, earlier this year, the San Francisco Fed came up with an academic justification for the now infamous double seasonally adjusted GDP print – they

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Aug 132015
 
The Fed Is Out Of Options, "QE Is All It Can Do Here" Art Cashin Predicts

Zero Hedge: “Weakness in commodities “is not transitory,” Art Cashin tells CNBC, if you look at things like copper, “this is really a deflationary push… where things can get a little out of control.” The Fed says they must get off zero interest rates because,, as Cashin notes, “they can’t do anything else.” However, as

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