We have seen raging inflation in many a sector during this long ZIRP central bank money printing depression. This peculiar depression with so much inflation and bubbles has resulted in the rich getting filthy rich and the lower classes hammered to the point of rebellion and destruction. The central banks who created this disaster are frantically trying to fix it but of course, the banking disaster is part of the free trade disaster. They are hitched to each other like Santa’s reindeer. And the European Union is now a sled drawn by one lame reindeer, one shot in the chest, one drugged up, one on strike. So it is skidding to the earth. No surprise. Boycott a major buyer/supplier is destroying the EU economy. Thank you, NATO. Thanks a million, Bilderberg gang.
Right on the heels of the Swiss franc shooting up in value against the euro, we have this headline in Germany: Economists Say Handing Out Cash Could Help Euro Zone Economy – SPIEGEL ONLINE
The logic behind the idea is that recipients of the money will head to the shops, helping to turn around a paralyzed economy in the common currency area. In response, companies would have to increase production and hire more workers, leading to both economic growth and a needed increase in prices because of the surge in demand…
One thing, after all, is becoming increasingly clear: Draghi and his fellow central bank leaders have exhausted all traditional means for combatting deflation.
The failure of these efforts can be easily explained. Thus far, central banks have primarily provided funding to financial institutions. The ECB provided banks with loans at low interest rates or purchased risky securities from them in the hope that they would in turn issue more loans to companies and consumers. The problem is that many households and firms are so far in debt already that they are eschewing any new credit, meaning the money isn’t ultimately making its way to the real economy as hoped.
Wading deep in red ink the last thing you can do is dump more printed money on the bonfire. All it does is wreck savers who are not in debt. But it can’t let the debtors take on more debt, that is lunacy and it doesn’t work. The US gets away with this because the vast majority of our money printing flows off to the EU, Middle East and Asia where we have endless trade deficits. The EU doesn’t have that luxury. The EU is a collection of often hostile language/states that hate each other so much, every 30 years or so, they tear each other apart in wars.
The US has a lot of interior hatred but the last time this led to a vast war was in 1860, over a hundred years ago. Europe has a terrible track record for intramural mass murder total destruction wars. By the way, speaking of the US, the guys who claim not using NASA but private business to go into space are doing this via a Billion-dollar deal: Russia to sell space rocket engines to US company. They are offshoring our space program! HAHAHA. And then selling this to our government. So much for ‘winning the space race’.
Swiss fallout drives euro to 11-year low against dollar as the Pound Gains Most in Two Years Versus Euro as ECB Weighs Stimulus and so far the Swiss franc jumps nearly 30% after euro cap is scrapped.
Saudi Arabia to build 600-mile barrier to defend Kingdom from ISIS which is their own creation. Like a Frankenstein monster, it is turning its hive mind towards attacking the Saudi royals who are infamously corrupt and evil not to mention fat. The Saudis are also losing money as the spigot of oil profits plummets. I predict they will fall faster and more furious than Putin, by a long shot. This wall won’t stop ISIS from penetrating from within.
Violent Anti-African Race Riot Rocks Israel, Black Men and Women Beaten: news totally hidden from view in the US. We are not allowed to know that Jews are persecuting, murdering, lynching or abusing African blacks and Palestinian natives. Israel is one of the most racist nations on earth.
Residents of a low-income Tel Aviv neighbourhood descended to the streets, waving Israeli flags and chanting “Deport the Sudanese” and “Infiltrators get out of our homes” to protest against the increase of African migrants moving into the area and the country.
The protest rapidly turned violent and police arrested 17 people with charges ranging from assault to vandalism. Some of them were still beating up migrants when they were arrested.
Japan asks U.S. publisher to change ‘sex slave’ reference in textbook as the Japanese fascists rewrite WWII crimes to hide Japanese viciousness. Note how this news barely appears in the US or is mentioned by anyone here. China notices! The Japanese still run trade surpluses with the US. We should hammer them on this issue and punish Abe and his gang, not enable them and encourage them. This is another sign that US diplomacy has collapsed into a sorry heap.
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I am confused by ZIRP, TARP, QE. I assume I am not alone in my confusion.
Lou I will try to make it murkier.
ZIRP is the belief that the future holds no risks for the lenders of money.
QE is the belief that more paper money given to banks and other speculators will immediately translate into more spending by the folks that were not given the money.
TARP is the belief that if the government prints money and uses that new money to buy valueless old shit held by failing speculators, the old shit is magically transformed into something valuable.
All three of these concepts are part of the Magic Printing Press theory of being re-elected.
None of them are healthy for folks who try to save, or create value or to prepare today for a risky future.
However, if you are among the billions who wish for something for nothing, who wants the production of others without the effort to produce something equally valuabe, then Qezirptarp is for you.
Okay, Lou, I’m gonna give it a shot. Feel free to correct me (as I know Elaine and her followers are not shy to do 🙂
ZIRP- Zero Interest Rate Program (policy?) A program/policy set forth by central banks, having been directed by the government, to set the interest rate banks pay for cash deposits at their institutions, as well as what they charge to lend money. For example, lowering a mortgage rate to 3.40% brings down the monthly payment on a $150K house to entice more people who finance the purchase of a house (that would include most people) to acquire one. The fact that manipulating the rate lower actually INCREASES the price of a home is lost on a majority of people. Indeed, prior to the 1930s, most homes were purchased either outright or with a “balloon” loan; usually 50% of the home’s value to be paid initially, with the entire balance due in five years. By 1932, many people lost their homes as well as their shirts due to the Great Depression. The by now familiar 30 year mortgage was instituted during FDR’s reign. Thus, the phrase “amortization of a mortgage” entered the vernacular of the middle class for the very first time 1935-1940). Thus, the pay-as-you go society America was born, allowing many of us lowly shmucks to become first time homebuyers.
TARP-Troubled Asset Relief Program (policy) A program set up by the government in which productive taxpayers (that would be you and me, and other formerly gainfully employed suckers) having their public funds RAIDED in order to bail out irresponsible lenders who speculated wildly in real estate ventures, stock purchases, etc. (see ZIRP).
QE- Quantitative Easing A fancy phrase for money printing. Devaluing the currency by issuing more of it temporally creates a false sense of financial soundness. Imagine someone handing you $50,000, “free” of charge. Sounds great, huh? That is, until a little down the road you find that a loaf of bread went from being $5.00 to $25.00. As Elaine correctly points out, if you can export the money you’ve printed to foreign shores, the scenario I just described isn’t as blatant or readily detected as it would be if we were, say, Zimbabwe (which we are rapidly becoming, minus their richness in natural resources).
Anyways, I hope this all helps. The bottom line is, I think, the gradual transformation from being a self-reliant, accountable, sound-banking, sovereign society and being a flashy, vinyl-clad casino (with apologies to vinyl-clad casinos) is well under way and damn near complete. Others should feel free to chime in and correct me, call me “rayciss”, an old fuddy duddy, “corn-fused” or the like. Lawd fohbid you call out the Jewish crime syndicate and the negro, its favorite pet de jour.
For what it’s worth, I like CK’s response better than mine. 😀
How about ‘printing paper money like crazy to save a bunch of bastards’ program rigged up by ‘rich often foreign owners of our national money printing presses that destroyed the value of the 1919 dollar making it less than a penny in value’?
All systems going to that outcome. 😦 My grandfather is spinning in his grave over this. He was anti-Federal Reserve before WWI.
In the UK the government has printed £379 billion and given it to the banksters hoping that trickle down will revitalise the economy.
Surprise surprise it has not revitalised the economy one iota. It would have been better to have kept the reduced rate of VAT and given every one £100-00 a month in cash.
At least 85% of all that was handed out would have gone straight into the economy.
Rule of thumb: money in at the bottom of the pile gets spent immediately. Money in at the top gets hoarded by misers.
But I do agree that printing money is a mistake as you say look at Germany in the 1920’s. I will add the UK in the 1970’s under Heath and Barber.
aint you glad they reinstated the charter of the fractional reserve national bank the federal reserve when its charter expired in 2014 and maintained the enslavement of the nation and the nations destruction created by the super rich JP Morgan for his profit to “save” the nation and prevent collapses of his banks.. without one news article……..yehaw………
What we are watching is the end-part of the monopoly game, when most of the money, hotels, houses, Park Place, and Boardwalk belong to one player, and the rest of them are getting $200 for passing ‘Go’.
And, it doesn’t really matter if we change the rules so they get $300 when passing ‘Go’, if there’s no more property to buy, and if it costs $10,000 or something every time they land on Boardwalk.
In the game, that is when you just put the iron and shoe and racecar and dog and tophat and all the hotels and money and deeds back in the box and put the box in the closet. In life, this stage is usually marked by a nice world war.
Some more Charlie Hedbo media spin. Even if (where big if) the elites had nothing to do with the attack on Charlie Hedbo (yeah, right) at the very least they are utterly shameless liars:
http://www.zerohedge.com/news/2015-01-17/truth-behind-cherlie-hebdo-solidarity-photo-op?page=1
That space article really gets on my nerves. Again, the article istated that Russia could do the rockets cheaper and better than the US.
Who landed on the moon first again?
Global BS is still global BS-and selling your country out never did work.
ΩΩΩ
ELAINE: Yes, we made it to the moon and then…did nothing! Tossed it aside. I was there at NASA (via my dad!) and watched the money disappear and the place fall apart rapidly after getting to the moon.
I was at the Space Colonization Meeting at Princeton and spoke there when Will Safire announced we didn’t need any space program except the missile intercept system so we could ‘destroy Russia’. I was aghast.
Argued hard against that!
The second story getting on my last nerve is at denninger’s site today- about the banks and the movement of money for smuggling illegals into the US-there seems to be nobody looking out for the citizens in any country anymore, -though I will say that the house republicans did just pass a few anti-illegal bills
But who knows what the more liberal senate and Obama will do about them–keep track of the people selling you out in both parties..
Floridasandy, your country was sold out a long time ago, arguably during the 1980s … that ‘first to land on the Moon’ business is a single data point in a tortoise-and-hare story waiting to be completely told.
There’s all this war-drum beating going on, while we get most of our rare earth metals from China and rocket engines from the Russian space program.
And that is the current state of ‘Progress’. Somebody used to say it is our most important product. We shall see how this plays out …
After watching the show on the USS Liberty, I realized the lying never ends.
I wouldn’t have a problem with printing money if it was actually directed to a multiplier effect, like small business creation—but that never happens, nor is it intended to. What we need is a partnership between the private sectinstant the private sector, instead of a competition, and a better balance between the two entities. Instead, pelosi and cronies are trying to find a way to raise the gasoline tax, to punish the working class more than any other group. Workers finally get a little breathing room, and the stranglehold starts again.