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This Is What The Global Economy Got For $11,000,000,000,000 In QE
Eleven trillion dollars: that’s how much of so-called Quantitative Easing the world’s central banks have done since the 2008 crisis. To put that in perspective, with eleven trillion dollars you could pay off pretty much all U.S. household debt – all mortgages, all car and student loans, credit cards – you name it.
So what did the global economy get for $11,000,000,000,000 in QE?
Following a post-recession pop, we got collapsing world trade growth, and that’s even with prices falling over the past three to four years.
Why is this happening?
It’s not because this time around things are different. To the contrary, the song remains the same.
For a long time, nearly four decades, growth has been getting progressively weaker during each recovery from recession. Of course, the U.S. is a major contributor to world trade and QE, but its trend of weaker growth is present in all major developed economies.
There are two key drivers behind this declining trend: demographics and lower productivity growth. Yes, it’s true that we’ve seen pretty good U.S. jobs growth recently, but that comes with productivity growth slamming down to zero.
Japan, with its “lost decades,” is at the leading edge of this long-term trend. But make no mistake, Europe, and as we see, even the U.S., are not far behind. Knowing this, will a trillion or so of more QE from the ECB make the trends in these charts turn and go the other way?
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kinda looks like the frost heaves around here.
this is why we need to invade russia
"Falling GDP growth during expansions"
See how it starts in '73? I could make the case we haven't had ANY long term growth since 1973. From about 82-on it's actually pretty damned easy to make that argument.
So it started just a little more than a year after the US abandoned the redemtption of dollars for gold...and moved us to paper backed by paper.
Definitely a coincidence.
1 trillion to 7 billion and 10 trillion to 100,000; yup, that is what happened...
With 11 trillion dollars, we could likely have a colony on Mars with a few thousand people living there. You laugh at me, but it would prove extremely useful to have humans there after the wars to come.
why can't they invade us?
i'll go pick some flowers ... just in case they show
We need to invade Granada
There fixed it for ya
Nope.Too big. We can handle Catalina Island though. Milestones
MMM now THAT was a Tasty Burger! now Greece behave!
http://hedgeaccordingly.com/2015/03/ecbs-mario-draghi-warns-greece-to-ho...
11,000,000,000,000 got us this:
http://billmoyers.com/2015/03/18/deep-end-wall-street-bonus-pool-low-wag...
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
You know what these means!
MOAR QE!!!
Yeah, if you don't happen to feel the kick, double the dose.
we need more population growth. which is impossible because the population is straddled with debt. thus, the bubble economy the fed created in the late 90's to hide the truth.
"Give me control of a nations money supply, and I care not who makes its laws."
-- Mayer Amschel Rothschild, bitchez
Lotta 'popes' got richer ~ That'z all I can say... It must have been one of those impossible mathematical multi sigma abberations again... Jhoocoodanode?
Joo know what's up.
He be [jeebie] sendin' his kid 2 Cornell to study Zombie Apocalypse scenarios...
QE/ZIRP is disinflationary .... deflationary when asset bubbles burst
years from now - maybe - "experts" will figure it out
you need to chart the ,001%ers assets or Wall Street bonuses.. Or Obama future payoff amount
EIA crude inventory out tomorrow morning
expected (icn) build of +3.8 million barrels
Yes, and imports of crude at the same high level.
add Bentley, Rolls Royce, Ferrari, Lamborghini, Bugatti sales to the charts
it would look prettier
The banksters and politico's could give a fuck. They are only concerned with keeping you in debt and the next election.
If that's all you get for $11 trillion these days, we should probably think about printing $92 heptasextillion next time. Maybe THAT will "solve" the problem.
Do not share the following information with the Federal Reserve.
http://en.wikipedia.org/wiki/Names_of_large_numbers
There is a ridiculously passive clicker game called Adventure Capitalist (complete with angel investors, and massively inflated prices for monetary producing assets.) It reminds me a lot of the Federal Reserve.
"This Is What The Global Economy Got For $11,000,000,000,000 In QE"
Zion got the wheat, and we got the chaff.
The banksters need to repay us.
One day soon we will give them the shaft.
As I predicted on May 2013.
QE is the CAUSE of the economic disaster and it was done on purpose in order to bail out insolvent bank lobby oligarchs starting with Warren Buffett
Now that military complex has control of congress after republican win, things are changing.
Congress will assert itself on the Fed, not the white house.
there is some bill in congress now (following recommendation of dick fisher) to strip some power from NYFRB ... i think take away permanent FOMC vote and rotate vice chairmanship (always been held by prez of NYFRB) ... Sen Shelby (head of banking committee) seems to be on board
we'll see
You can't put a value on the Q99X2's studys of how 18th century young London girls learned to protect thier chastity.
Even so, the Q99X2 did put a value on it and part of that 11 tril. is what kept those q99x2 suckers FED. Up my FAFSA Yellen Mutha Fuckka. Oh and thanks for this quarter's check which happened to come in today. Got to study the Moby Dick you know.
I didn't go to Harvard but it's pretty simple to see what's happened. Globalization/labor arbitrage has taken many people out of abject poverty into regular poverty. At the same time many formerly affluent middle class earners have slipped into moderate poverty. Either way you have no spending. "Free trade" only works among nations at like stages of development. Anything else is purely labor arbitrage at the expense of the developed nations. Our politicians have fucked us and they all need to be hung from a lamppost. Every fucking one of them
let us spend MOAR,
certainly that will solve it.
Give me Spielgeld for Wallstreet, and
I care not who debts it way into QE - Baron Chlamydia III
Keep Voting Democrat.
Straight Ticket!
voting doesnt do shit.
More people collecting benefits and welfare than voters.
You know this. I know this, but a great deal of the American people think the dems ar efor the little guy.
Ridicule these motherfuckers into a shallow grave I say.
Meh
Lets take Ted Cruz for example
Says he would "abolish the irs" pffft
His wife:
http://heavy.com/news/2015/03/heidi-nelson-cruz-ted-cruz-canadian-nation...
Works at goldman sachs.
Without the IRS to fear monger clients, goldman sachs would have half the thieving power it has.
So the guy is obviously a puppet.
There are no real candidates, even Rand/Ron Paul could be make believe for all we know.
No matter who anyone votes in, they are voting in the same group of people.
are you so stupid no not know Nixon or Reagan started this ball rolling REPUBLICANS num nuts. Democrat-Republican same same on the important foreighn policy economic issues. bumbu sauce your a dullard.
At least I'm not a fucking retard like you. :)
The new graph should show the increase of the 1% in weatlh, the increase in luxury item sales, mansions and cars.
The valuations of artwork reek of counterfeiting and corruption.
It didn't "trickle down" and it only helped the ones who didn't need it.
I love the graph. Now lets see one comparing the rise in QE, with the rise in incomes of the top 1% income earners. I bet that graph would be very instructive!
I didn't go to Harvard but never met anyone who did that I'd want to share a duck blind.
Common sense is dam near extinct these days.
What part of the Bankrupted Criminal Fraud UNITED STATES, CORP. INC & The Emergency Banking Act of 1933 doesn't anyone understand?
Plus the broke US "Citizen" Slaves are now FDIC on the hook for the BANKSTERS Derivatives losses.
This is beyond, for lack of a better word Fucked.
“It is an established fact that the United States Federal Government has been dissolved by the Emergency Banking Act, March 9, 1933, 48 stat. 1, Public Law 89-719; declared by President Roosevelt, being bankrupt and insolvent. H.J.R. 192, 73rd Congress m session June 5, 1933 - Joint Resolution To Suspend The Gold Standard and Abrogate The Gold Clause dissolved the Sovereign Authority of the United States and the official capacities of all United States Governmental Offices, Officers, and Departments and is further evidence that the United States Federal Government exists today in name only.”…
United States Congressional Record, March 17, 1993 Vol. 33
The Legislative Act of February 21, 1871, Forty-first Congress, Session III, Chapter 62, page 419, Congress chartered a Federal Company entitled "United States," a/k/a "US Inc.," a "Commercial Agency" originally designated as "Washington, D.C.," in accordance with the 14th Amendment which the record indicates was never ratified (see Utah Supreme Court Cases, Dyett v Turner, (1968) 439 P2d 266, 267; State v Phillips, (1975) 540 P 2d 936; as well as Coleman v. Miller, 307 U.S. 448, 59 S. Ct. 972; 28 Tulane Law Review, 22; 11 South Carolina Law Quarterly 484; Congressional Record , June 13, 1967, pp. 15641-15646). A "citizen of the United States" is a civilly dead entity operating as a co-trustee and co-beneficiary of the PCT, the private constructive, cestui que trust of US Inc. under the 14th Amendment, which upholds the debt of the USA and US Inc. in Section 4.
Bankruptcy of U.S in 1933 & State of Emergency, War Powers & Trading with the Enemy Act of 1917
The United States went "bankrupt" in 1933. [President Roosevelt Executive Order 6073, 6102,6111, 6260; Senate Report 93-549, pgs. 187 & 594, 1973]. In 1950, declared "bankruptcy and reorganization." Secretary of Treasury appointer receiver in the bankruptcy [Reorganization Plan, No. 26, 5 U.S.C.A. 903; Public Law 94-564; Legislative History, Pg. 5967
To reinerate. The Criminal Fraud UNITED STATES, CORP. INC. Is Bankrupted. The Emergency Banking Emergency Act of 1933 put the Bankrupted US into receicership to the IMF, World Bank & BIS.
Criminal. 14th Amendment made "Citizen" Slaves out of every single man, woman, child & future childdren. All assets, land (making Americans Tenants on our own soil) labor, future labor & American Souls Aka birth certificates were securized & put up as collateral to pay back a Criminal Loan the BANKSTERS know can never, ever be paid back.
In addition, the Act made de facto all "Citizen" Slaves Enemies of the newly formed Criminal UNITED STATES, CORP. INC.
It’s not because this time around things are different. To the contrary, the song remains the same... The Song Remains the Same Song by Led Zeppelin
Anything I wanted to know, any place I needed to go Hear my song. People won't you listen now? Sing along.
You don't know what you're missing now.
Any little song that you know
Everything that's small has to grow.
And it has to grow! California sunlight, sweet Calcutta rain
Honolulu Starbright - the song remains the same. Sing out Hare Hare, dance the Hoochie Koo.
City lights are oh so bright, as we go sliding... sliding... sliding through.
https://www.youtube.com/watch?v=LWYiddSs4wk
A bank could buy a couple of politicians with that kind of money.
QE is the FED (a private corporation) creating money on their keyboard. That money then finds a debt instrument; first it was bonds, then mortgage backed securities. (MBS were fraud, but that is another story.)
Initially, these debt instruments were TBills (really a bond), held in banker reserve channels. The FED bought private bank TBills, trading out money for this financial “asset” - really a debt instrument.
Money then goes into banker reserve loop in trade for said TBIll, and then what happens? IT GETS STUCK!
There is no real transmission path of money from banker reserve loops into the real trading economy.
Knock on effects: TBills price goes up as money is chasing this asset (debt instrument). Price goes up and hence interest rate goes down.
With low bond price, then interest rates are low. This means that YOU the sucker, should show up at a private bank to take out a new loan. This hypothecation debt creation event then will put money into the economy. This is credit money that must be paid back, and upon payback it destructs. You put credit money into the working economy when you spend your new credit.
But, people don’t show up to take out new loans, except for subprime car loans and student loans. They are still in debt depression, because the lower loop of wage earners is being drained of purchasing power. This drain is credit that is going into debt ledger and being destroyed.
Is there a QE transmission path. Yes, but it is a weak one. Private Banks can make loans to themselves, and then buy debt instruments out of primary or secondary market. This loan is then canceled when the instrument finds its way to a reserve channel. Former debt holder really didn’t need the money; otherwise they wouldn’t have been holding debts. Former debt holder spends his new money channels into more debt formation, or buying Oligarchy goods. Private bankers also did a carry trade on other economies, where much of the QE dollars went overseas trading for their debts, or funding new loans.
In other words, none of this QE money goes into the productive laboring part of the national economy. It circulates in a path that chases financial instruments – it creates a false financialized economy.
A real path would be government deficit spending, acquiring new credit money, and then spending into families or the commons. This would then go on to pay down private debts. The same 12T spent this way would have rebuilt the country, but would not have enriched the financial class, as there would have been little usury involved, and the wealth would have multiplied. (Fed rebates to Treasury interest paid on public debts.)
This QE mechanism has also been juiced by the fact that FED pays for “money” held in banker reserve loops. So, the private debt spreading banks are now fully capitalized and are paid for holding money in reserves.
MEFOBILLS
There you are trying to shed some light on all the nonsense and misinformation’s.
It’s always an enjoyment reading your posts. Please never stop writing.
I also would like to add this. I find it very telling, too.
By Ron Patterson: “When water tables are dropping by meters per year, when rivers are running dry, when forests are being clear cut, when species are going extinct by the tens of thousands per year, when most fish have already disappeared from the ocean and when the human population of the earth is about three times the long term carrying capacity of human flesh, it don’t take a Nostradamus to figure out something has to give.”
http://peakoilbarrel.com/jodi-iraqi-reserves-and-ghawar/comment-page-1/#comment-506767
like to see the second chart re done with a consistent rather than increasingly fake GDP deflator.
They would need to do it log.
What have noticed since QE:
price of labor has not gone down
Price of food has increased
the price of housing and stocks has gone up.
wages remain stagnant.
the rich getting richer
HOW THE HELL ARE US REGULAR FOLK SUPPOSE TO BUY ANYTHING TO STIMULATE THE ECONOMY IF WE DONT HAVE THAT MUCH IN THE WAY OF DISPOSABLE INCOME.l?
This Is What The Global Economy Got For $11,000,000,000,000 In QE"One percent of the global population owns half of total global wealth", an all time unprecedented achievement for lil ole misunderstood QE. Sheesh! Sounds like a smashing success!
......for some.
Ya and what would the line look like without QE? I will tell you what - there would be no line -because we would all be dead.
One of the key benefits of QE + ZIRP is that they enabled shale oil. Conventional oil had peaked in 2005 and without all those millions shale oil barrels of oil to delay Total Peak Oil we would all be dead.
And now we are between a rock and a hard place. High priced oil destroys growth. Low priced oil means production drops.
In summary, WE ARE FUCKED.