Zero Hedge: As Morgan Stanley’s Michal Wilson writes today in his Weekly Warm Up piece, “in recent marketing meetings, several clients have asked if we think the Fed’s $60B/month balance sheet expansion is QE or not.” In response, Wilson gives the podium to MS interest rates strategist Matt Hornbach who says that it’s “Q” but not “QE.”
While semantically Wilson and Hornbach are correct, the outcome is obvious: whether it is Q, QE, or NOT QE, the money is clearly making its way to the market when the Fed’s balance sheet expands, and vice versa.
And quite a bit of money it is, because it’s not just the Fed.
As Wilson further elaborates, “we continue to see the 3 largest central banks in the world expand their balance sheets. Read More …
Opinion: It is a race to the bottom. The Federal Reserve (Fed), European Central Bank (ECB) and Bank of Japan (BOJ) are caught in a hamster wheel as even thought of paying down debt is non-existent.
It is hard to fathom how a government can get its economic policy so wrong when there is a real-life disaster playing out right before our eyes in Venezuela. Money creation can keep inflation hidden for a while, only for it to show up suddenly by some unexpected shock.
It might be a slump in oil prices, as in the case of Venezuela, or a slump in farming output, as in the case of Zimbabwe. The shock sets off a chain of events. Tax revenues evaporate, leaving a hole in public finances. The government fills it by printing money. The increase in the supply of money pushes up inflation. That is bad enough. But what accelerates this process, turning a jump in prices into hyperinflation, is the impact of inflation on government revenue. source.
Revelation 6:5-6 predicts hyperinflation in the last days causing a man to work a full day to make enough money to buy food just for the day. The Apostle John did not leave out that the super-rich (oil and wine), would not feel the pain for a time.
The need for more and more prosperity has become so ingrained in the west that simple logic found in the Bible is also non-existent.
“For the Lord your God will bless you just as He promised you; you shall lend to many nations, but you shall not borrow; you shall reign over many nations, but they shall not reign over you.” Deuteronomy 15:6
Thanks VS for sending this article in