12.3 trillion of QE has added up to… this?


national debt

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 the brink of a recession, despite bargain-basement interest rates and trillions in liquidity.

It’s all part of a phenomenon that Michael Hartnett, chief investment strategist at Bank of America Merrill Lynch, terms “quantitative failure”.

Opinion: We have hundreds of posts on Quantitative Easing (QE). It began in 2009 as a cure-all for an economy that  refused to grow. Since there is a Democrat in office, you won’t hear how QE hurts the poor and middle class and makes the rich uber wealthy.

Simplified QE Formula: Create money – give it to banks – banks buy stocks and bonds, and whamo, Batman, the bull market is on.

mountainThe problem is that the newly created money is like counterfeit, it is literally borrowed from ourselves and has to be paid back. Globally, QE debt is over 12 trillion, which, of course, does not factor in the national debts of each nation, making the world awash in debt.

Solomon knew better: “The rich rule over the poor, and the borrower is slave to the lender.” Proverbs 22:7

So, here we are 7 years from the recession that never really ended, and we are on the verge of another one. If we look back to Genesis 41:25-27, Joseph warned Pharaoh that at the end of 7 years of plenty there is 7 years of famine.

This time the central bankers have a new idea: negative interest rates (NIRP): literally paying a bank money for the privilege of making a deposit.

After that fails, will come the end of cash, which will only work temporarily because the DEBT problem is still there and there will be non-stop economic reports to sell the world on the benefits of a cashless society.

That is the reason we created BPTnews.org, since our staff consists of me and Editor (with help from Vason), it is not possible for us to do commentary on all the news, it reminds me of the I Love Lucy show with the chocolates.

In the next week or two, we will combine the sites and either URL will take you there. We received several emails regarding keeping the commentary on the blog posts, the only change will be a prompt to “read more” (expand) when the commentary exceeds a certain number of words.