Helicopter money is officially on the table. Dow 36000? Better keep stacking phys while you still can.
http://www.zerohedge.com/news/2016-0...fter-helicopte
Last edited by devil21; 07-11-2016 at 01:15 PM.
"Let it not be said that we did nothing."-Ron Paul
"We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book
"In opening remarks at a two-day conference on monetary policy, Mr Kuroda said the power of conviction was among the best tools in a policy maker’s tool kit.
“I trust that many of you are familiar with the story of Peter Pan, in which it says, ‘the moment you doubt whether you can fly, you cease forever to be able to do it’,” he said.
“Yes, what we need is a positive attitude and conviction. Indeed, each time central banks have been confronted with a wide range of problems, they have overcome the problems by conceiving new solutions.”
His remark is the latest in a series of unusual analogies he has used to illustrate the BoJ’s fight against deflation."
Pfizer Macht Frei!
Openly Straight Man, Danke, Awarded Top Rated Influencer. Community Standards Enforcer.
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The Federalist Papers, No. 15:
Except as to the rule of appointment, the United States have an indefinite discretion to make requisitions for men and money; but they have no authority to raise either by regulations extending to the individual citizens of America.
Japan is certainly in a different situation than the US. Their economy is much more highly controlled than ours is and they rely much more on exports. Their population is also shrinking- expected to be half its current size if trends continue by 2082- by one third by 2060. They have been fighting deflation for a long time too. Proposals for them will not necessarily come to or help the US.
Bernanke on Japan in 2010: http://www.wsj.com/articles/SB100014...46084161525708
More at link.Mr. Bernanke urged Japan to commit to keeping interest rates low until it got more inflation, and he defended novel ideas like buying government bonds with the understanding that fiscal policy makers would use the money thus raised to finance tax cuts to boost consumer demand.
The analogy between the U.S. economy and Japan's isn't perfect. Japan has an older population, less-profitable banks that didn't get quick capital or attention from regulators after the property bust, low job-market turnover and many industries shielded from international competition.
Other differences: Japan is a big exporter, while the U.S. is a big net importer; Japan wasn't a big debtor to the rest of the world, as is the U.S.; and Japan has a high savings rate, so its deficits have been funded internally. While Japan has experienced many years of deflation, the U.S. hasn't had any in the modern era.
But the similarities between the two economies are striking. Both countries went through stock and real-estate busts that severely damaged financial systems, Japan in the early 1990s and the U.S. in 2007 and 2008. Both saw unemployment rise and developed much slack in their economies.
Both ran up large budget deficits and pushed interest rates to zero. Both have important globally traded currencies that didn't dramatically weaken after their bubbles burst. That meant their exports didn't soar, as happened in some smaller economies after financial crises.
Mr. Bernanke's first significant brush with Japanese officials was in 1999. Consumer prices had started falling, and the Bank of Japan had already pushed short-term interest rates to near-zero.
Falling prices meant that real interest rates—nominal rates minus inflation—were rising. Household and business debts, in other words, were growing harder to pay off. Officials were stumped over what else the central bank should do, if anything.
It could purchase Japanese government bonds, the academics said—a money-pumping approach now called quantitative easing. But having just gained independence from the Ministry of Finance, Bank of Japan officials were reluctant to start funding the government. And buying bonds exposed the central bank to big losses if private investors starting shedding the investments.
At a conference at sponsored by the Boston Fed in Woodstock, Vt., that October, Kazuo Ueda, then a BOJ policy member, issued a warning to the largely American audience: "Do not put yourself into the position of zero rates," he said. "I tell you it will be a lot more painful than you can possibly imagine."
Mr. Bernanke shot back that Japanese policy makers might be making the same "extreme policy mistakes" Americans made in the 1930s—being too timid about reversing deflation. A few weeks later, in a blistering research paper, he said even though conventional tools were expended, there was plenty the Japanese could do to boost consumer demand, business spending and prices.
Among his suggestions: Cheapen the yen by selling it in the currency markets; or buy long-term debt from the Ministry of Finance to finance tax cuts, something he said was akin to just dropping money from a helicopter.
One objection at the time was that Japan's economic problems weren't the result of too little stimulus by the central bank but of structural problems in Japan's banking system and in protected industries.
Mr. Bernanke said structural problems didn't negate the need to find ways to push up consumer demand and business spending.
"Japanese monetary policy seems paralyzed, with a paralysis that is largely self-induced," he concluded. "Most striking is the apparent unwillingness of the monetary authorities to experiment, to try anything that isn't absolutely guaranteed to work."
Mr. Bernanke was particularly troubled by Japan's emerging deflation. He argued that Bank of Japan officials had to aggressively manage the public's expectations, because convincing households and businesses that deflation wouldn't persist would help to spur economic activity.
holy hell
'We endorse the idea of voluntarism; self-responsibility: Family, friends, and churches to solve problems, rather than saying that some monolithic government is going to make you take care of yourself and be a better person. It's a preposterous notion: It never worked, it never will. The government can't make you a better person; it can't make you follow good habits.' - Ron Paul 1988
Awareness is the Root of Liberation Revolution is Action upon Revelation
'Resistance and Disobedience in Economic Activity is the Most Moral Human Action Possible' - SEK3
Flectere si nequeo superos, Acheronta movebo.
...the familiar ritual of institutional self-absolution...
...for protecting them, by mock trial, from punishment...
"Like an army falling, one by one by one" - Linkin Park
Why not just let people keep more of their own money to begin with?Originally Posted by Seraphim
Pfizer Macht Frei!
Openly Straight Man, Danke, Awarded Top Rated Influencer. Community Standards Enforcer.
Quiz: Test Your "Income" Tax IQ!
Short Income Tax Video
The Income Tax Is An Excise, And Excise Taxes Are Privilege Taxes
The Federalist Papers, No. 15:
Except as to the rule of appointment, the United States have an indefinite discretion to make requisitions for men and money; but they have no authority to raise either by regulations extending to the individual citizens of America.
I am keeping all of mine .
Certainly wouldnt want deflation. That would be just horrible.
- Kim KardashianIt's all about taking action and not being lazy. So you do the work, whether it's fitness or whatever. It's about getting up, motivating yourself and just doing it.
Donald Trump / Crenshaw 2024!!!!
My pronouns are he/him/his
That is a interesting point... it made me laugh when I thought about the logistics of that. I think the answer is so obvious and right in our face that its easy to overlook, this will cause a creation of new money where lowering taxes would just keep it out of the hands of the government and in the hands of the people.
Deflation is not associated with growing economies.
Yes, its very important, to maintain 1-3% inflation,
or people's jobs will disappear, and homes will no longer be built.
I cannot imagine, how anything ever got done, before we had central banks, to keep our economies healthy
- Kim KardashianIt's all about taking action and not being lazy. So you do the work, whether it's fitness or whatever. It's about getting up, motivating yourself and just doing it.
Donald Trump / Crenshaw 2024!!!!
My pronouns are he/him/his
Yes, jobs do tend to disappear during deflations. The deflation is usually caused by people not buying things. That means fewer sales by employers who decide the need fewer workers since they are selling less stuff. Now more people have less to spend and the cycle goes another round. More layoffs. If you are one of the lucky ones and don't get your paycheck cut, lower prices are nice.
What would you consider a healthy economy? There is never low inflation, continuous job growth forever. All economies have booms and busts. No- I don't claim a central bank can prevent that either. No monetary system can.
Last edited by Zippyjuan; 07-13-2016 at 11:04 PM.
High/increasing prices is the hallmark of a healthy economy.
If prices are going down, that's a really, really, bad thing. We wouldn't want that.
- Kim KardashianIt's all about taking action and not being lazy. So you do the work, whether it's fitness or whatever. It's about getting up, motivating yourself and just doing it.
Donald Trump / Crenshaw 2024!!!!
My pronouns are he/him/his
High price inflation is also not desirable.
Right. The ideal inflation rate is around 1-4%. No more, no less.
It is known.
- Kim KardashianIt's all about taking action and not being lazy. So you do the work, whether it's fitness or whatever. It's about getting up, motivating yourself and just doing it.
Donald Trump / Crenshaw 2024!!!!
My pronouns are he/him/his
God forbid we have lawful money that doesn't lose value every year and one could actually put a nest egg away for retirement.
Pfizer Macht Frei!
Openly Straight Man, Danke, Awarded Top Rated Influencer. Community Standards Enforcer.
Quiz: Test Your "Income" Tax IQ!
Short Income Tax Video
The Income Tax Is An Excise, And Excise Taxes Are Privilege Taxes
The Federalist Papers, No. 15:
Except as to the rule of appointment, the United States have an indefinite discretion to make requisitions for men and money; but they have no authority to raise either by regulations extending to the individual citizens of America.
But then we would lose so many jobs. Mostly banker jobs, but still!
- Kim KardashianIt's all about taking action and not being lazy. So you do the work, whether it's fitness or whatever. It's about getting up, motivating yourself and just doing it.
Donald Trump / Crenshaw 2024!!!!
My pronouns are he/him/his
Losing Banker jobs may not count. They were not looking for work anyway .
I know a guy that has some REAL money , he would sell you some .
I don't think the Peter Pan "believing you can fly" is the proper analogy here. Close, but perhaps it's closer to this:
And quite scary by the way, that Governor of BOJ is consulting Fairy Tales for talking points.
When a trumpet sounds in a city, do not the people tremble?
When disaster comes to a city, has not the Lord caused it? Amos 3:6
So... about those crashes you predicted... this past April and this coming August, right?
This. None of this is about relieving our pain. It's about the Fed and the fat banks which own it making money the old fashioned way--by printing it.
Of course it isn't--the propaganda on the subject is fierce. But that does not mean deflation prevents growing economies--especially if you adjust the numbers for that deflation.
Agreed. The real reason for QE and QE-like programs is that in this debt based system MORE debt is required to pay EXISTING debt. You know this already, I'm quite sure.
In this debt-based system deflation derails the banks and government as their profits and ability to spend are reduced.
The reality is that taxing the general population is actually used as collateral posted by governments to the banking system to ensure they can keep "printing" and keep the fraudulent siphoning of wealth into the hands of the politically connected banks/corporations/individuals.
The fact that "helicopter" money is actually being verbalized for huge economies like Japan and the USA by certain "high ups" tells you that the ENTIRE system is on it's last legs and the hyperinflation (at least the enormous devaluation) of currency is DESIRED.
"They" are hinting to us in plain view that this is the 9th inning of this sham and that the reset of the system is coming MUCH sooner then later.
The debts are mathematically impossible to pay back without major currency devaluation. This process will create the single largest wealth transfer in HUMAN HISTORY. This isn't one big country. It isn't a couple of counties. It is now then ENTIRE "West" and nearly the entire "East" - that includes China. China in the short run is in big, big trouble.
My view is that the USA will be the last domino. The entire world right now is flocking into quality and perceived quality. Gold, certain equities, US dollars and US Treasuries. It is why in a rare turn of events the US dollar AND gold are both rising at the same time.
The European block and it's currency are dissolving before our very eyes (the Euro as a currency will NOT exist soon). The Yen WILL hyper inflate. These events will occur before the day of reckoning comes for the USD and the US economy - which means in the short run the USD will continue to strengthen as foreign capital flocks to something "better".
"Helicopter money" is better (as perceived by the ruling elite) then tax relief for the masses. Tax relief means the collateral to their system vanishes. Collateral is the backbone of any debt...but when the whole system is debt based, the way to post such enormous collateral is to TAX TAX TAX.
Helicopter money allows for wiping out the value of real debt and as a bonus creates CHAOS.
Last edited by Seraphim; 07-14-2016 at 04:36 PM.
"Like an army falling, one by one by one" - Linkin Park
Me? Your dates of my predictions are inaccurate but that aside I still expect some events that trigger large stock market selloffs in order to justify the use of helicopter money to "Save The System". Bankers won't just announce huge stimulus without a public reason. Market crashes and helicopter money aren't mutually exclusive. Just sequential steps in the process of stealing everything that isn't nailed down before the house burns in chaos and is rebuilt in the order that is desired.
Helicopter money is how to clear debts with cheap money, just as the 50th jubilee year dictates. Clearing of debt first by outright collapse and repudiation and then by printing the currency into nothing to mop up the rest.
"Let it not be said that we did nothing."-Ron Paul
"We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book
I mostly agree but there is one very large detail I must deviate from you on. It's is NOT the stock market that matters this time. It is the bond market.
The very nature of QE ought to signal that to you. It is a money printing operation to buy BONDS (some equities to prop stock markets up...but it's a bond buying program at it's core).
If equity markets crash it's painful, but manageable. If money stops flowing into the bond market, GOVERNMENTS COLLAPSE. In this case we are talking about the sum of Europe, Japan and the USA....just to name a few.
Over the course of a currency collapse/helicopter money cycle equities tend to actually do OK (not great but OK). At least many of the underlying companies provide something of VALUE. Bonds on the other hand see their value evaporate (cheapened currency makes the value of said bonds drop - in the case of outright currency crisis long dated government bonds become just as worthless as the hyper inflating currency).
IF central banks were to "helicopter money" because of a crash in the equity markets they would be making an ENORMOUS mistake that will lead to a bond sell off like the world has never seen (in the sense that the world economy is so tied together the SCALE has never been seen) and would PRECIPITATE hyperinflation instead of "just" a large scale devaluation.
Stuck between a rock and a hard place.
"Like an army falling, one by one by one" - Linkin Park
^^^^^
Stocks, bonds, whatevs. It's everything that is dollar (FRN, really) denominated. Stocks are the public reason. The public follows stock markets. The "smartest guys in the room" follow the bond markets. The public doesn't and few have any clue how it even functions.
Note Greenspan's comments recently that lack of productivity is why Venezuela conditions will come to America soon. Productivity=bonds. Central bankers don't care about equities except for PR reasons.
Also note the Saudi threat to dump their dollar denominated assets if the 9/11 pages, soon to be released even as soon as the next few days, implicate the Saud house. If bond and equities (all dollar denominated) are sold off, the Fed probably buys them and then prints the FRN into dust. From whence it came, no?
(btw, pro-tip - look for tipping point events to occur on calendar dates divisible by 7)
Last edited by devil21; 07-15-2016 at 01:22 AM.
"Let it not be said that we did nothing."-Ron Paul
"We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book
If none of this happens before the end of the jubilee year, will that at all cause you to re-evaluate your theories?
He did with the Shemetah which was going to trigger the "next crisis". Then it became "just wait- it was the Jubilee year!" What was that crash the last Jubilee year? How bad was it in 1966?
Saudis own about $400 billion in $US assets including US Treasuries. Even if they do dump them (unlikely), it won't crash the market or the dollar.
Every week has at least one date divisible by seven.(btw, pro-tip - look for tipping point events to occur on calendar dates divisible by 7)
Why do you care? Find another thread if you don't like the content. But trolling is your only purpose here so I won't hold my breath. I'll never forget that your handle was created immediately after I posted about the Protocols of the Learned Elders of Zion and your first post was in that thread. You gave yourself away from day one.
My problem is usually that I'm ahead of the curve and see what's coming too soon. Most would call that a good problem to haveSometimes it takes longer to play out than anticipated but play out eventually it does. I'm not alone though....the neocons thought they could overthrow 7 countries in 5 years lol.
Now, back to thread topic. 9/11 pages released....will the Saudi's punk out or follow through and effectively end the petrodollar peg?
Last edited by devil21; 07-15-2016 at 01:05 PM.
"Let it not be said that we did nothing."-Ron Paul
"We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book
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