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Here Come The Money Helicopters!
Submitted by Bill Bonner of Bonner & Partners (anntated by Acting-Man.com's Pater Tenebrarum),
$10 Trillion Goes to Money Heaven
We interrupt our series on what to do if you have no money to bring you an update on those who are losing it. (You can catch up on Parts I and II of that series here and here.)
What was the best place for your money so far in 2015? Cash! Compared to cash, almost everything is down. We are headed for the worst quarter for stocks since 2011, says the lead story in today’s Financial Times.
Global stock markets have lost $10 trillion of their value over the last three months. What? Where did all that paper wealth go? The old-timers say it went to “money heaven.”
One fine morning in money heaven….will it ever rain down again? Of course, no money has actually disappeared. Only make-believe values have.
We’re not so sure. But we stop. We stare. We look at it as we would at a corpse. What happened to its life force? Where did it go? Why is it no longer there? We have no answer. But looking at a stock market sell-off is like standing over an open coffin: We are in awe at the power of the gods to take as well as to give.
They ask no one’s permission. They follow their own playbook (which they never reveal to mortals). And they are as much a law unto themselves as the NSA. But what’s $10 trillion that never actually existed anyway? Easy come, easy go, right?
Well… yes… and no. It’s usually a pleasure to welcome a baby, but a funeral can be painful. And every one of those dollars – now headed for heaven or hell – will be missed by someone.
On Wednesday, the Dow rose 154 points to 16,049. That left the stock market overvalued by about 8,000 points. At least, that is the assessment of billionaire investor and Wall Street legend Carl Icahn. The current price-earnings ratio for the Dow is 15, he says, and “half of that is bulls**t.”
The ½ bulls**t index, daily – click to enlarge.
“Money talks and bulls**t walks,” is the old expression. And sometimes the bulls**t walks out the door… taking the money with it. That is what has been happening in this quarter. And not only in the U.S. The biggest losses have been suffered abroad. Japan, for example, deserves special notice.
Our Trade of the Decade Sours
As you might remember, our “Trade of the Decade” was to sell Japanese government bonds (JGBs) and buy Japanese stocks. After a quarter-century of a bear market, we figured Japanese investors were sure to catch a break. And Japanese bonds had been so overbought for so long, the market in JGBs was bound to run into trouble.
This trade looked pretty good a few weeks ago. Japanese stocks were up almost 20% this year alone in dollar terms. That was largely thanks to Prime Minister Shinz? Abe’s plan to devalue the yen… one of his so-called Three Arrows. But like all macroeconomic engineering by public officials, the plan soon revealed itself as just more bulls**t.
Tripping over a lack of third arrows – the Nikkei Index – click to enlarge.
Instead of stimulating the economy, Abe’s first two arrows – monetary and fiscal easing – struck vital organs, draining away what little life was left. Japan is now on the verge of a technical recession. Its economy shrank in the second quarter. And it’s on the verge of repeating the trick in the quarter just ending.
In fact, so disappointing were the results that Abe forgot his third arrow – structural reform – and instead picked up a new quiver with the usual assortment of crooked and twisted policy claptrap.
But the bulls**t walked out the door anyway, with Japanese stocks giving up all this year’s gains. Japan’s economy is shrinking. And deflation came back to life the day after Abe proclaimed it dead.
Abe’s economics textbook – it’s not working, so maybe they should do more of it?
Cartoon by Li Feng
And now cometh Etsuro Honda, a special advisor to Mr. Abe and often described as an “architect” of Abenomics. Mr. Honda says it may be premature to say Japan is in recession. Instead, he describes the economy as “static.”
In yesterday’s interview with the Financial Times, Honda took no blame for the slowdown, even though he, as much as any living human being, is clearly responsible for it. Instead, he proposes to go “full retard,” with even more imbecilic policies.
Japan has a nigh endless supply of insane Keynesians doing the same thing over and over and over again – here is one more, Etsuro Honda. His proposal? Let’s go full retard. Doesn’t he know that no matter what you do, you should never go full retard?
QE for the People
This, we fear, is not just a freaky sideshow. It is more like the coming attractions. Japan has led the world for the last three decades – first with an unsustainable bubble economy in the 1980s… then with a meltdown… followed by a long on-again-off-again recession.
The Japanese feds tried every trick in the book to revive the economy – except for the one that would have worked. The government borrowed and spent (as a percentage of the economy) more than any nation had ever done. And it invented ZIRP and QE as policy tools.
But now it’s become “urgent,” says Honda, to do more. Hasn’t he done enough already? you may ask. But no… He now proposes more QQE (for “qualitative and quantitative easing”). What grotesquerie lies ahead?
Our mouth hangs open. What is this strange beast slouching towards the Eccles Building (the headquarters of the U.S. Fed)…waiting to be born? The idea behind Japan’s quantitative easing was to INCREASE the quantity of money in the system so as to DECREASE the quality of each unit.
It was expressly meant to devalue the yen so that consumers would want to get rid of their currency faster. QQE makes no sense… even in the perverse terms of modern central bank meddling.
Here is how the money will come back from its hideout in money heaven – via helicopter! Look how happy the peasants are!
Illustration via adamsmith.org
But wait. There’s more. Honda says it will be accompanied by a “supplementary budget, focusing on the real income shortage of mid- and low-income households.”
Right now, this proposed extra spending is being funded out of taxes. But support is growing around the world for such spending to be funded by “People’s QE.” The idea behind “People’s QE” is that central banks would directly fund government spending… and even inject money directly into household bank accounts, if need be. And the idea is catching on.
Already the European Central Bank is buying bonds of the European Investment Bank, an E.U. institution that finances infrastructure projects. And the new leader of Britain’s Labor Party, Jeremy Corbyn, is backing a British version of this scheme.
Ah-ha! That’s the monster coming to towns and villages near you! Call it “overt monetary financing.” Call it “money from helicopters.” Call in “insane.” But it won’t be unpopular. Who will protest when the feds begin handing our money to “mid- and low-income households”?
We wait. We watch. We wonder how the Japanese will attempt to bring back to life the economy they have worked so hard to kill. And now, all over the world, central planners, bankers, and politicians are watching too. “Where goest the Bank of Japan, there too I shall go,” they tell themselves.
Stay tuned…
Somewhere in a dungeon in Tokyo, a crack team of Abe’s economic advisors is working around the clock on a secret project that will save us all!
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QE for the sheeple huh?
You watch, if the banskters do this...it won't be "money" dropped on them. It will be "stawks" so they can enjoy the "wealth effect" too.
Innovation you frauds!
Does this mean Russia will completely defeat ISIS and the USA will keep bombing hospitals?
That ain't workin' that's the way you do it
Money for nothin' and chicks for free
Now look at them yo-yo's that's the way you do it
The key metric to follow is the premium on physical gold and silver, and with silver approaching 50%, it's the gold premium that is most important. When that hits 25%, all hell will break loose.
dimmedat munny
Most people are tuned to the same station...WIIFM. What's In In For Me
Makes me wonder how much of this scheme will really just turn into yet another bank bailout. While some people will no doubt spend their helicopter money on pointless shit they don't need(the back bone of the 'consumer' economy ), many people will just use their helicopter money to pay down high interest debt. In fact, id bet a lot of people will do that. So the govt hands money to people so that they can just hand it to the banks who loaned them money.
When they start printing money and putting it in peoples accounts, I don't know what you guys would do, but I'd pay off debt, mortgage, etc. On the other side of the ledger, debt holders get paid off w/Monopoly money.
Rumplestiltskin-san. Where art thou?
@Cog WIIFM - no static at all.
https://www.youtube.com/watch?v=7AzMim9jZ-I
- HT Steely Dan
debit cards not accepted by financial institutions for debt repayment.....only accepted by national retailers and chains for consumer purchases
**can be used as down payment on car or house
"Who will protest when the feds begin handing our money to “mid- and low-income households”?
Where have you been?
This has already been going on for decades:
http://www.irs.gov/Credits-&-Deductions/Individuals/Earned-Income-Tax-Credit/EITC,-Earned-Income-Tax-Credit,-Questions-and-Answers
http://www.in.gov/fssa/dfr/2684.htm
http://www.fns.usda.gov/snap/supplemental-nutrition-assistance-program-snap
http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/hcv/about/fact_sheet
http://www.cdss.ca.gov/cdssweb/pg78.htm
https://www.healthcare.gov/medicaid-chip/getting-medicaid-chip/
I almost cracked my toof I laughed so hard!
A real money helicopter couldn’t get off the ground but a credit copter, as it is all smoke and mirrors is light as a feather.
That is why is any printed money won't go to the deeply indebted middle class.
The cash drop will only be designated for the investor/Wealth sequestoring classes that trade amongst themselves for high priced assets aka QE/Wealth Effect, or for the lower/pure consumption class aka WIC/EUC/obama phone.
IF the middle class were provided with fresh printed money it would pay down debt which would negate the whole reason for printing in the first place as the money would be destroyed as soon as the debt is paid off resulting in ZERO asset price inflation or service/perishable consumption multiplier effects.
Well, that initial money drop would definitely pay off debt, but then I'd have more disposable income each month.
While not admitting any guilt, they are returning a tiny fraction of the "many thousands of Trillions of US Dollars" which they have stolen from us over the last 100 years.
They will forgive all mortgage debt student loans credit card debt for everyone making under 200 per year
Suddenly household budgets can spend full retard
Bonds will blow up GM style
The Social Security/pension systems counterparty those mortgages.
The only way that debt is ‘forgiven’ is if the Social Security crowd gives up their checks and replacement hips… along with the pension crowd.
What’s the odds of that?
The solution is old people Soylent Green. /sarc
More likely- health care rationing. Once you reach a certain age, sorry. Nature will be allowed to run it's course. There are already calls for this in some circles(usually the same circles who believe all healthcare should be govt run, which should tell you something).
Nature will be allowed to run its course for everyone but the ultra-rich and anyone in government.
Gimme gimme gimme, gimme some more.
H. Rollins
Keith Morris was the singer when Black Flag recorded Gimme Gimme Gimme - Henry came later.
Well... no.
Your age is the most important factor and when somebody who's for example 30 or 35 years old and up to his or her ears in debt
and don't have the means to pay it back...
the banks look to such a person and say:
THAT PERSON STILL HAS 30 TO 35 MORE YEARS OF POSSIBLE INCOME POTENTIAL.
They'll never forgive that debt for as long as that person can or could work.
Even 1 dollar of downpayment is a income stream.
And they don't care if the interest keeps piling up, they'll sell that debt at 50% or lower when it gets to high to impounders who will make your life a living nightmare and you actually end up being a slave to those people who will squeeze you for the rest of your life.
And banks don't sell the entire debt, they just sell the owned interest at 50%. So if your interest is 12%, they'll sell that at 6% and make a nice profit. And the initial sum is kept at the banks who keep in their books and they don't have to write anything down. So either way, the banks get their money and it's a beautifull investment for them, even if you don't pay them back.
Those people are sociopaths and they don't care about your quality of life. They want money and if the law would permit them to cut you up they would do it.
We live in a society that prays on the weak and people in debt are the weak. Easy pickings. And people in debt don't have any real rights in our society.
That's why I avoid debt like it's the plague. If I can't pay for it, I don't want it or it can wait untill I do have enough money.
>>if the law would permit them to cut you up they would do it.
If the law does not permit them, they will change the law.
Kalki
I have not followed anything about gold coins, mostly because I don't understand them.
For the last month, I have been following the premium on 1 KG Gold bars, and they have slowly moved from 1.85% to 2.11% or a little above that.
I like tracking the 1 KG gold prices because that is more of the wealthier investor.
http://goldprice.org/gold-prices/Gold-Bars.htm
$6 Million tax free to each household is a logical step after bailing out banks/corporations/insurers and juicing markets/banks/dealers with Trillions in QE - absolutely logical.
Bailouts and QE - and establishing Central Banks to begin with - is where the insanity started.
Now there, they may as well send us our checks and start the debt jubilee.
This insanity, tax refunds for 3 years, what insanity. Sheep lie will be super excited for "free money." Too bad the intersection of the velocity of money and the adjusted monetary base is lost on most people.
I walk around each day and see it...but just am in awe. I see now hiring signs everywhere, yet the homeless here in Portland just keep stacking up. I know it is nearly impossible for me to find good people to work....Again...I notice NOW HIRING signs in all kinds of places. Even Jimmy Johns has a huge banner out front staing "OPEN INTERVIEWS EVERY SUNDAY 2PM to 5PM"....granted a lot of these are service sector jobs, but as I talk to fellow business owners, they are in the same boat. To find good qualified people is next to impossible. Even if we are willing to train.... What is going on? 94 million out of work? You would think these jobs would be snatched up. I don't get it. And the price of everything except GAS...is through the roof. I am selling my toys....and took my car in to Dodge to be checked over before I sell it. $130 an hour is the shop rate. So...let me get this straight...we have 94 million out of work...I see "NOW HIRING" sign everywhere. There are no people that want to work? And prices for everything that we use is going through the roof. Hillary is still in the race ready to be President even though she commits multiple crimes that if were charged to you or I would bury us. Bizzaro world continues forward. Have a great day!!
Perhaps you can't find anyone because you probably pay them shit instead of real wages.
Agreed! My whole life I've never once been paid real money. Only these worthless fucking Fed IOUs.
yep, the greedy tick and leech Free Shit Army gets 30K for sitting around smoking weed all day.....U gottsa payd dem wreel wage is...
How do you get a down vote for this, Why work for less than you can get in benefits. and if you do take that job, you better declare it properly or you are breaking the law. one of a million laws
Cowards down vote w/o attempting to refute the obvious facts.....
lets say you are on the tit and you will work for cash only (fraud) to keep the benefits... Their solution, eliminate cash. There is the fix.
Problem with that for them is they fund illegal ops bs with laundered illegal money.
Sam Kinneson...It never ends!!! Oh Oh OOOooo!
I think $10 per hour is plenty good for flipping a burger -- even if it is in FRNs.
I downvoted you, and am now posting this to disagree with your assessment.
Upvoting and downvoting -- they are just a way to express one's opinions.
It is not like we are using real name and interacting face to face.I don't think downvoting is any indication of cowardice.
But I think the way someone reacts to rebuttals and disagreements tells a lot about that person's confidence/insecurity level.
Here, here!
Don't care how many leftist up votes you get, your statement shows a stampeding reality disconnect. When the government becomes your largest competitor for wages, people will weigh the pros and cons of work and decide its simply not worth it. As a taxpaying business owner, I am forced to subsidize my own destruction. People will always be less willing to work when the consequences are simply a slightly retrograde lifestyle. Not sustainable as the dwindling number of producers also decide it's just not worth it. I'm getting there quickly. Going Galt is not just theory.
Agreed. This "shit for wages" meme just goes to show the degree of entitlement that is now seemingly everywhere in the US. Entry level jobs are not designed to support a family. Today, everybody wants to start at the top -- no matter their qualifications or job skills.
Today 5$ is equal to 5 cent in 1960. There is a story of a man working during the 1930s. He hired on to a job loading coal without asking what the job paid because he was desperate for work. After loading coal all day he went for his wages. He was offered 10c. He told the man to keep the money obviously he needed it more then him.
People who got laid off years ago have survied one way or another all this time without working. At this point they refuse to go back to work. I know these people. They rationalize it in all sorts of ways, but the bottom line is, if you give a man enough to survive, most men simply exist. They eat, sleep, fuck, play video games, read, fish, or whatever floats their boat. Not a care in the world. No boss. No schedules. No traffic. No stress. Everything is paid for somehow some way. Whether it's disability, welfare, WIC, EBT, mooching off of family, dealing drugs, or some combination - they have disconnected from the main stream economy and work force, forever.
The socialist transformation of America is now complete. Expect European level youth unemployment rates shortly and an overall degredation of society for man decades to come.
I agree. The big question though, is what happens when those benefits no longer flow? The people you describe, and there are tens of millions of them, no longer have the ability or desire to do anything productive other than exist. Once the system that allows them to exist on the backs of others can no longer support them, it is going to be a shit show of epic proportions.
There is a coworker lady who has a husband just like you described.
He decided he was going to start his own business. They live off her gig and the 401K withdraw.
Now she’s griping how he won’t work and they are almost flat broke.
Women received the emancipation and right to work they clamored for.
The fact that the available jobs per capita has declined for the last 30+ years means that if women take work then a corresponding man sits at home with the dishwasher and the tv.
What is so hard to understand?
Do the ladies have a problem with mathematics?
I up voted you - but it simultaneously gave you 3 down-votes - ?%^#@. How the hell does that happen?
It doesn't, you have one vote, either up or down.
Your browser is not updated every billionth of a second, so other people have voted in the time between your browser refreshes....
For the majority of Americans, the choice is this:
A. Barely survive and get by on a substandard wage while enriching megacorps and entrenched elites (the Jew) while they piss on your face, tell you it's raining, and that if you just work harder then you too will be a millionaire. This is a complete fabrication because their nepotism and corporate protectionism through OWNING THE FUCKING GOVERNMENT assures that only monopolies and cartels will ever exist. The entire lesson is that there's no sense competing because you will be crushed by those above you, and if you bow and scrape like a good goy, then maybe you'll get some table scraps.
B. Barely survive and get by while living on small cash jobs, help from friends, family and charity, while living a life without a boss, without restrictions, where you can spend time with your family instead of spending 27x3 hours a week at your three shitty jobs, none of which pay for health care and absolutely game the system. The system is trying to game the average American, so I don't blame the Average American for rebelling against it utterly.
The game is rigged, the system is rigged, the whole stock market is a rigged casino which favors the house (Jews, Wall Street, Government) and people are waking up to the fact that the rules don't apply to the elites anymore.
The Jews won, but that doesn't mean we still have to play the game. I'd rather they all sit on welfare, so this whole corrupt system can crash and burn because of the fundamental inequities built into the system over generations of corruption, and the whole time the cheerleading media lies with every breath, the schools indoctrinate, and everyone believes that they are temporarily embarrassed millionaires who just need to sacrifice their sanity, health and families on the altar of Moloch, and then they'll be truly happy.
In conclusion: Fuck you, bud.
The attempts to extend central banking beyond its well demarcated boundaries and limits(essentially 20th century technology) is what will lead to bloodshed.
Those running the show are the persistence of a 19th-20th century cartel mindset. They are proving themselves incapable of adapting and transforming into the expectations and demands of the 21st century. Their mindset-that of hierarchical control structures-has long since past them by. The debt those structures created is a testament to their obsolescence.
That kind of thinking -which liberated man from the agricultural world-is a liability in the way of men benefiting from the information age.
and everyone scoffs at the potential of hyperinflation, just because it hasn't happened yet.
patience, my friend. we are approaching the CBs last stand. they will never give up until the make the paper worthless.
At that same time, I am expecting something radical against Gold/Silver.
That is Fiat money's final stand.
Weimar world, forward ! MOARch !!!
Pay the good Germans, they will take orders.
Germany is a Muslim owned masoleum to the pending extinction of the German people from their native lands and eventually, the Earth. Another tribe of man scattered to the winds. Sure, a few Germans will survive in North America, South America, Australia, and even Europe - but their land is forever lost and they are no longer one people.
Oh no, there goes Tokyo, go-go Godzilla!
https://www.youtube.com/watch?v=jJoy_0dJEjY
"Godzilla"
With a purposeful grimace and a terrible soundHe pulls the spitting high tension wires down
Helpless people on a subway train
Scream bug-eyed as he looks in on them
He picks up a bus and he throws it back down
As he wades through the buildings toward the center of town
Oh no, they say he's got to go go go Godzilla
Oh no, there goes Tokyo go go Godzilla
History shows again and again
How nature points up the folly of men
Free trucks for small biz ala cash for clunker style. Keep the unions happy. IMHO is down the pike sometime
Autonomous Trucks are here. We’re fucked!
Try to have a paid off house. You’ll need to dip people for taxes.
So he says, Japan is the trialbaloon and if it is (not?) working there then everybody will do it.
The Japanese people must be in some kind of mind-fucked state of suspended animation to have allowed this to go on so long. Then again, Americans are equally docile, ignorant and passive. EBT cards for everyone!!
There you go.
Helicopter money has been in play for quite a while.
Keeping the Free Shit Army free for (your own number here) years.
Just proves 'money' isn't real.
Of course it's real...it's just not gold. I assure you that I can purchase almost anything with money. Give some to me and I will be happy to prove it.
All you can purchase is toys. For everything else you need an army.
Professor Paul Krugman (Nobel laureate) would vigorously squeal, squawk, clack and hiss menacingly at your apparent attempt to mock Abe's fierce battle against reality.
Good Goy. Let us chosenites print the world into prosperity.
Give the money directly to the people, not the bankers. Should have done that in the first place. Banks do two things with the money - gamble it away on the stock market causing a bloated, over-valued market, and 2) put it into property loans causing a bloated, over-valued property market. Almost none of it goes into the real economy - jobs, consumers, spending....
For those who say this is inflationary, fuck you. With the deflationary forces at work today as new credit dries up (the supply of money in our system is entirely dependent on credit), it would take a helluva lot of 'People's QE' to overtake that. We need increase money volume and increase the flow of money in the real economy - give it to the people - our entire economic system is based on one primary thing - consumerism. Consumerism requires consumers (a.k.a., people) with money to spend. They start spending the money, businesses increase inventory and expand and add jobs, jobs that enable people to get back to work and what? SPEND MORE MONEY! Yes!!!
And then what? You talk as though if you do "QE for the people" that would finally make the economy reach so called 'escape velocity' and everything would be cured. It won't. Giving every household in the US 1000 or whatever number would indeed juice the economy, and we would no doubt have a great quarter or two. Then it would go back to how it was before. They would end up having to do it over and over again, with larger amounts of money and more frequently until it all blew up, Weimar style.
The ONLY solution is to let capitalism run it's course. Allow all these institutions to collapse, resulting in a long and hard depression, which would flush out all the zombie institutions dragging the world economy down, namely central banks and their beneficiaries. Eventually, we would recover and actually grow again, hopefully learning our lesson about debt and fiat money.
.
Good plan. It has always worked that way in the past.
Can you print oil? Water? Food?
No?
Didn't think so.
bankers! a little beery tribute!
https://thatguybloke.wordpress.com
This is just correcting this trend and this trend.
Basically, capitalism didn't return its gains in profit and productivity to the workers (i.e. the 99%) for 20+ years. Our wages are dried up -- hence 'demand' is dried up, hence markets are crashing.
This is a public sector correction of that fact. I think it will be a very good thing. Inflation is a possibility, albeit very overhyped in most people's minds. See this video by Warren Mosler. There are ways of correcting inflation if it gets out of hand -- taxation and indexation are ways of pulling money out of an overheated economy.
However, speaking honestly, how bad would inflation have to get before it was as bad as our current predicament/system/never-ending quagmire? It would have to get pretty bad. We can start off small and watch what inflation does, but there is no way forward now without public sector investment in the lower end of the wage curve.
What is this capitalism thing of which you speak? All we have here is various forms socialism all rolled up into a hideous and strange empire.
ucde is just a bot programmed with standard Keynesian Klown talking points.
So we wont have to work anymore? They will just direct deposit money into our checking accounts?
How cool is that!
Yes, you too can become a trust fund baby. Just like the banksters...
Except when everyone gets it, it will have no value....
An infinite supply of worthless fiat trash.
Hate to say it but what alternative is there? The world has 6B too many people and more than half will never have jobs because those jobs don't and won't ever exist. In ten years time there will be 1B more people and 30% less jobs. Bill Bonner is one of the best writers out there but he's also part of the problem. He had four kids when even one per family is a luxury we can't afford. The options are mandatory birth control, disease, war, money handouts for all. Or all of the above.
I think it's very noble of you to volunteer to kill yourself for the good of mankind.
Thanks.
Fuck off shovelhead. I didn't have kids. You did. You're the problem, not me. Ignorant people should be sterilized at birth.
People are ignorant at birth, by DEFINITION! However, some, like you, do have the opportunity(s) to correct ignorance.
Where have you been Tyler ? We have been handing out money to people for years. How do you suppose 94 million people in the US can eat without having to work ?
Welcome to the beginning of the end. There is no fucking way they will hand out money. Inflation would skyrocket and their own wealth will diminish. I gotta call bullshit on this one.
You don't pay attention much do you? The FED WANTS INFLATION
That's something that pisses me off every time I'm in a grocery store. The quality of food is not good and the prices just keep going up...a lot.
And if the prices are somehow close to the same....check out the container sizes. Shrinking fast. Ever seen an average cereal box these days? Any more shrinkage and we'll be buying cereal 'envelopes'.....for $4 each.
How about those half-gallons of juice? When did a half-gallon become 59-60 ounces? Man, they're even screwing with beer bottles now. I've seen certain brands producing 11 ounce bottles. Coffee pouches are no longer 12-14 ounces, but are now hovering in the 10-11 ounce range for many brands.
Lots of creative ways to hide inflation from the sheeple.
While this article seems to make sense, we have to agree it’s an illusion.
Abenomoics is working great.
It's been a cliffhanger for how long now - and the systems keep going? That's the intent. One more day....
Money from helicopters ..... billions for terrorists in Syria ..... government employees need another day off to spend their pay increases .... 94 million "kneegrows" (all races) paid generously to not even look for work .... but, "Social Suck" falls relatively further and further behind in the pack .... our only crimes were being white dupes and paying into the system ?
Oh what the fuck, it will be QE infinity anyway. Therefore, the banksters had better shower the people too if they wish to keep their heads.
Are you kidding me? I want inflation. I would love nothing more than to see central banks print trillions and give it away- finally an end to worthless fiat and all that silver and gold suddenly would look pretty hot.The only one not paying attention is you. If they wanted inflation pardner, they could have it by Tuesday.
The Fed(s) keep pouring gasoline (i.e., Munny!) into the carbuerator, when the crankcase has no oil (interest rates) in it! WHO's got a match?
Giving money to the people is a genuine Keynesian solution. Giving money to criminal banks and oligarchs to hold off the day of reckoning for their gambling losses is crony capitalism. If ZH knew anything about economics, they'd know this; but hey, it's so much easier to call crony capitalism "Keynesian," or "communist," or "socialist," or "liberal," or whatever mislabel pops into your head that day. And since when has accuracy ever counted for anything anyway? Fostering understanding of opposing views and salvaging what's good from an ideology you don't like has never led to progress, right? Let's just demonize and scapegoat a target group. That will fix it!
So what we thought we would do is take all the richest people who already have all the money and give them even more money. What? What was the next step? Oh, you know, they all start up businesses and pay wages to employees and stuff. Oh? That didn't happen? Hmmm, they just kept all the money? Well, surely nobody could have seen that coming!
"Keynesian solution" is one of the great oxymorons of the English language.
Let's just give people more of the inherently unstable and immoral debt-based money that caused this problem in the first place. That will fix it!
I hear this more and more....the free money......I bet we see it soon....but the politicians will give themselves 2 for everyone you get...the rich will still get richer....you can bet on that....and inflation to the moon...
The Japanese have literally all the time in the world on their side. 100 years from now Japan will still be Japanese. So long as nothing changes, 1,000 years from now Japan will be Japanese. Maybe they invent giant robot suits and conquer the world? Maybe they launch off into space to live in orbiting space stations? Who knows! But they are one people, one culture, and one nation united against the world.
Yes, AGAINST the world. Because man is inherently tribal and this cannot be changed, only suppressed. Every multi-cultural, multi-racial empire/nation descends into anarchy, genocide, and ethnic cleansing once the power of central government breaks down. Do not think whatever modern Western nation you live in will be exempt from this historical reality.
The best North America and Western Europe can hope for is to become Brazil. THE BEST case scenario. Worst? Rhodesia. All whites genocided.
Meh,
If you ain't smart or determined enough to save your country and your culture then you don't deserve to keep it.
There's always a Golden Horde waiting in the wings. The real dopes are the ones that invite them in.
After the money is devalued people will burn dollars for warmth.
You can't burn digital.
If you are NOT involved in white collar crime, why not? It works very well for the banks and insurance companies. Most AGs and DAs can not investigate white collar crime as their offices are owned by the....wait for it...white collar criminals themselves! Get it? They are looting to their hearts content so what are you waiting for?
The preceeding was brought to you by your local FBI office. (Whose pensions are heavily invested in...you guessed it...."financial stocks".) So the FBI could give a shit about white collar crime as well.
Yes, there will be some scapegoats, you know, the guy in the basement.
Why not pool your own MBS products and sell them on Wall Street? Bribe and get an A+++ rating and you are good to go! See BofA, Wells Fargo, Chase, etc. for lessons on how this is accomplished.
Then you can buy your own helicoptor.
Money for free financed by debt is already long amongst us it is called socialism/deficit spending.
FREE OBAMA MONEY FOR THE ENTIRE WORLD. WHAT YOU WILL NEED TO GET THE END OF A COUNTRY'S MONEY.
1. SWEAR YOUR ALEGIANCE TO SATAN.
2. RENOUNCE CHRISTIANITY
3. KILL UNBORN BABIES AND CUT THEM UP FOR MORE OBAMA MONEY.
4. SUPPORT AMERICA'S ENEMIES, AND RELEASE THE CAPTURE ONES BACK TO THE BATTELFIELD.
5. LIE AND DECIEVE TO ANYONE WHO QUESTIONS YOUR MOTIVES.
6. SUPPORT THE COMMUNIST DEMOCRATS, AND THEIR HATRED OF THE U.S. CONSTITUTION, AND 1ST & 2ND AMENDMENT.
7. PSYOPS & PROPAGANDA TO THE SHEEP DEPENDENT VOTING BLOCK.
8. START A RACE WAR
9. START A RICH & POOR WAR.
10 JUST STAND FOR NOTHING.
11. ENCITE A WAR AGAINST LEOs
12 . IMPORT 10S OF MILLIONS OF ILLEGAL AND DEPENDENT EVEN ENEMIES OF THE AMERICA AND THROUGH DICTATOR FIAT ALLOW THESE 10S OF MILLIONS TO BECOME AMERICANS TO VOTE FOR COMMUNIST DEMOCRATS, SO THAT FUTURE COMMUNIST DEMOCRAT POTUS CAN APPOINT ANTI-CONSTITUTIONAL SUPREME COURT JUDGES TO THROW OUT THE BILL OF RIGHTS, TO TURN AMERICA INTO A NWO.
The American people can not admit that the above list is what 50% of Americans have embraced.
The American people need to turn away from everything that the democrat party stands for, or this country will not survive.
The Republicans will save us?
Let's run the Weeping Tan in a Can for President.
Should straighten things right out.
There are lots of Republicans in name only, and they support most if not all of the evil democrat programs.
Republicans have always been that way. It's a propaganda coup that they got people to think of them as anything but a bunch of Nanny Statists who want to run your life.
i will eat dog shit if the fed ever gives the average middle class family anything. any free money would go to illegals, refugees, welfare, food stamp etc etc etc. the people that 'deserve' the money (if you can say that) would never get a penny....
And it would have to be over 10 grand per taxpayer to make any impact.
As God is my witness I thought gold eagles could fly.
On Wednesday, the Dow rose 154 points to 16,049. That left the stock market overvalued by about 8,000 points. At least, that is the assessment of billionaire investor and Wall Street legend Carl Icahn. The current price-earnings ratio for the Dow is 15, he says, and “half of that is bulls**t.”
Half of that is financial fraud.
"Ah-ha! That’s the monster coming to towns and villages near you! Call it “overt monetary financing.” Call it “money from helicopters.” Call in “insane.” But it won’t be unpopular."
It will be unpopular when the math hits home.
"Everyone" lovingly called Greenspan The maestro, until the collapse in 2008.
I don't suppose the money helicopters are the same as the black helicopters flying over my house all the time...
This is a great opportunity. The FED drops a shitload of money onto the public hoping they will spend it. The public goes out and spends every penny of it on gold and silver, and just sits on it and doesn't think about it again for 5 years. Think of it a savings plan, a gift for your children... whatever. Just buy it and forget it without a worry in the world.
That would be a win/win/win... all for the public. And a 'lose' for the bankers.
the simple answer is get rid of Central banks, the BIS & Ban usury.... Oh & Jail the CEO's & Owners of these Private institutions!
I'd bet the Chosen ones would be spitting blood at such a thought lol...They'll spit more than blood if i get the job of "restructuring "
I like the quote:
“A nation of sheep will beget a government of wolves.” ? Edward R Murrow
I would update it to
"A world of sheep will beget wolves with full stomachs breeding more vicious hungry wolves".
How is it "our" money, when it can be created at will out of nothing?
Buy real stuff before your money is worthless.
"What grotesquerie lies ahead?"
You gotta love 'ole Bill Bonner, if for nothing else, choice little nuggets like that...
This article is unreasoned, and indicates a large amount of ignorance. Since economic history is not taught, or large sections are left out, then most economists are blinded.
Even recent history, such as underlying reason for Japan’s property bubble, and subsequent debt depression is ignored in analysis:
Japan’s post war miracle economy was due to “credit window guidance.” BOJ (Bank of Japan) blew a giant bubble to transform her economy to become “Financial Capitalism.” This was on purpose and it looks like string pullers in the background were BIS, IMF, and Wall Street – the usual suspects. Fischer was also involved – no surprise that we would find a tribesman whenever double dealing is being done.
See the movie “princes of yen” to understand how a property bubble leads to a balance sheet recession (BSR).
https://www.youtube.com/watch?v=p5Ac7ap_MAY
BSR’s in turn are mostly private debts based on FIRE. FIRE is finance insurance and real estate.
If a money supply is 97 percent private bank credit, and 70% of that money supply is hypothecated into existence for FIRE, then the outputs should be obvious. Private debt instruments will have formed against real estate, and said debts will be held by bankers or on sold into markets. People on the hook for settling the debts will be those who need some place to live – usually labor.
For the U.S. to get out of its BSR pre WW2 and during the war, it had line items on General Budget. This would be NON TAXED money, or deficit spend. The line item money was spent via Reconsruction Finance Corporation. It was more than a trillion dollars in those days. This money then entered the economy on a path, where it went on to do something useful, and then further went into people’s wallets, where in made demand, and then further into paying off debts. At the end of war, most people were out of private debts.
Germany did not have a great depression. Scacht spent MEFOBILLS, which targeted exogenous money into 6 big construction concerns. After the goods were created, mefobills were discounted and this new reichsbank money then flowed outward into the economy. Later it was taken up in increased tax rolls. This is the primary way that Germany built up her economy and put people to work. Japan noticed this mechanism and employed credit windows for her war time economy, and later post war economy.
Canada turned BOC (Bank of Canada) into a crown bank where MOF (ministry of finance) wholly owned BOC bankstock. MOF then spent debt free money into productive channels. Some of it was spent into households as an allowance for children. There was little price inflation from 1938 to 1974 despite this so-called “helicopter money.” Why? Because it went into productive channels.
WW2 was an extension of WW1. WW1 was largely about sovereign countries DIRECTING their CREDIT to be useful. Finance, or private finance, otherwise known as financial capitalism (now crony capitalism) was deathly afraid of industrial capitalism. Note also that finance capitalism is financial oligarchy and this oligarchy funded Bolshevism. Hence Private Capital , debts to control people, and Bolshevism are the same well spring.
Helicopter money is useful, even necessary when private finance creates BSR’s. It must be targeted and channeled though.
For example, just dropping it over the U.S. to where the people then buy more Chinese crap, and then the Chinese then buy more TBills to put future American’s in debt, would be stupid.
If exogenous helicopter money is targeted to pay down housing debts with concomitant deal to have Georgist type rent taxes imposed, then that would be a win-win, as it targets the real source of finance capital’s dysfunction: FIRE and BSR’s.
See the movie. Make an effort.
Illuminatti = CFR = NWO in 20 to 50 years maybe less
Your Greenbacker Garbology is as amusing as Mathman's "It only costs $5 to mine silver out of the ground."
Why don't they start by just sending all the Social Security recipients a 13th check, like the City of Detroit and other municipal pensioners used to get?
I dont believe this helicopter money thing to be honest. Do you guys seriously think they will give you a money free money without INTEREST ?? That will be the day debt based system OVER ?? I think goverments increase their spending they can even raise money for the people who retired.Is this good news ?? NO that means goverments will take the blame for economic crisis and elite choose the hyper inflation model compare deflation in 1929.Prepare to take out some zeros out some currencies in the future. I can already imagine 1 million dollar banknotes in our daily life.BUY GOLD.
Funny how some gold bugs still believe in the "increasing the money supply leads to hyperinflation" story, although Japan clearly proves that its just another monetary theory myth and despite Friedman himself allegedly calling it BS at the end.
I am not a gold bug but you have to understand QE money never ever reached in ordinary people hand thats why it didnt create inflation. It did create very problamatic financial bubbles though. How ever if any kind free money ever reached to public hands for sure it is going have inflationary effect.
Elio
Agree with your response why inflation did not occur and why they are proposing helicopter money because it DID NOT WORK! Simple they failed so now they try this.
Makes no difference if only half receive the helicopter money, the 50% who do not will collapse consumption so you only shifted consumption with little to no net increase.
There wont be FREE MONEY. The real goal of QE was never create serious inflation. There is already an inflation higher than goverment staticts. The goal of QE was to keep the debt based ponzi scheme banking cartel ALIVE.QE only goal was to stop bankruptcy. If we talk about FREE MONEY or helicopter stuff what ever you want to call not matters.It is totally a diffrent thing. If you have free money even for a short priod of time people doesnt need to BARROW which means collapse of debt based system.
No helicopter money will ever reach the working class. Asset forfieture alla Cypress/Greece. They been practicing.
COME ON FOLKS PAY ATTENTION!
On the road to WWIII. Desperate people/institutions do desperate things when cornered and the people pay the price.
whats wrong with transferring lets say $50.000, interest free, into every citizen's bank account? Of course debtors must pay down debt first, and of course after a couple of month most of the money will end up in the same greedy hands, but it would be a game changer for many people in terms of confidence, creativity and opportunity.
I wonder what Tyler wants to tell us with this shallow article
See! Stupid has no limits.
Why would the banks - the very entity that has enslaved you with their inherently unstable debt-based money - all of a sudden give you some debt-free money?
Because they're nice guys? Because they care about you?
The only thing shallow about this article is your inane commentary.
PAY DOWN DEBT???? ELIMINATE THE BANKSTERS' PROFITS AND CONTROL OF US???? ARE YOU MAD????
Neo-Keynesian "macroeconomic theory", like Islam, is a political system disguised as something else. Neo-Keynesian "economics" is DESIGNED to destroy the world economy SO THAT TPTB may realize their Illuminati "Ordo ab Chao" New World Order, creating free "money" for themselves with which to buy up all surviving real assets at fire sale prices.
Meanwhile, all of "our" economists (such as Mr. Bonner herewith) are in continual amazement at the "stupidity" of the Neo-Keynesians and their "incompetence". Far from it. THEIR plan is right on schedule.
Is yours?
Helicopter money?
Does everybody get the same amount or are some selectively chosen above others ... well we can soon sort that out dispose of the priviliged ones to enusre you get a handout.
One fact, those who do not get it will be expected to endure the increased inflation the helicopter money drop brings. It is a base rate changer like hiking the minimum wage 20% so if you are just above the median wage and helicopter money arrives and you get none you just went under.
It's all fun and games til a loaf of bread costs a wheelbarrow full of cash and the seller wants to keep the wheelbarrow. Speaking of which, I have some highly collectible Continentals for sale. Beat the rush and PayPal me now or just send ASEs.
The problem is not the people. The problem is not consumption or production or cost.
There are two problems.
1. Paracitism ... those who consume without producing and live off of the work of others.
2. Corruption... thos who lie, cheat, steal and defraud people out of their work.
I already called first dibbs on the first $30 trillion in physical gold bullion helicopter money, motherfuckers, and you can place that bullion in my back yard on the patio stones before you dot another i, Bob Cratchit.
Bah humbug!
For one
Who will protest when the feds begin handing our money to “mid- and low-income households”?
Europox
"Fuck the poor!" Absolutely a growing concern, the poor. The middle class has been taking the beating. Help the middle class. (No selfishness on my part, promise)
where can i apply for this ?
I can even drop my current job if that is what is needed to qualify
So what's the chance that a few smart people get some of this helicopter money, and buy up the remaining deliverable gold? Would that ever happen? What about silver or other PMs?
As I've said before, since this is all going to end very badly anyway and the longer this coiled spring of malinvestment is wound up, the worse the eventual crash will be, I'm all for helicopter drops of free cash TO ME. Not only will I actually get something out of this foolish game for a change rather than losing to it, it might help to bring about that crash that's needed sooner rather than later.