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Old 02-17-2019, 07:26 PM
Danny B Danny B is online now
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,440
The CBs pump it in, the banks suck it out

Benjamin Franklin and Adolph Hitler injected money directly into the lower loop for work done Both got a war. Nope, the money must be injected into the upper loop. Finance has gone from being about 7% of the economy to about 40% of the economy. Real productivity has been severely reduced. Wages have been static for about 40--45 years. Production & consumption are floating on a sea of debt money. This bubble of debt money has taken on a life of it's own. It is not inflated by commerce. It is inflated by the pressure of more debt flowing in. There is no particular source of legitimate money coming in so, it depends on illegitimate money. The new money hasn't really done any good.

"In other words, whereas in the US the Fed was responsible for roughly half the upside in the market in the past decade (assuming low rates did not also benefit earnings, which they did) in Europe if it weren't for central banks, there would have been no market appreciation at all since the March 2009 lows. "
The overlay of the EU bureaucracy on top of existing European bureaucracy sucked out 20% of their GDP. Remember this is pure consumption, NOT investment. The EU States (ex Germany) have a 1 trillion account deficit.
50% of the rise in U.S. equities is due to FED pumping. 100% of the rise in European equities is due to ECB printing. The ECB pumps in money so that the legions of bureaucrats won't lose their jobs and pensions.. NOBODY needs that many bureaucrats. Like most government employees, there is no demand for their"skills" in the private sector.

2/17 China accounts for 60% of past decade’s new global credit – ZH
China is printing to keeping the masses employed
When it come to public employees, NO price is too high to keep them employed and comfortably retired.
Illinois Governor Seeks to Sell State Buildings and other Assets to Pay Pensions
Governor Prtizker released details of his plan to save Illinois. He made three of three of the worst possible choices.

No matter how much the private sector suffers, the public sector is untouchable. BUT, that takes a lot of money.
Fed Launches Stealth QE “New Normal” | Miles Franklin
Op-Ed: The Fed's stealthy QE — $267 billion of fresh liquidity injected ...
So you thought quantitative easing was over? Think again | PBS ...
The End Of QE Isn't Really The End Of QE - Forbes

When wages crashed, the CBs jumped in to rescue the banks. Organic commerce couldn't save them so, the CBs did. They never thought that saving banks would be a open-ended job commitment.

Bill Gates said. "But we can be more progressive without really threatening income generation — what you have left to decide how to spread around."
Yep, don't tax me, just spend it more carefully.
The Scrooges,

2/17 Accounting change will raise corporate liabilities by $3 trillion – CNBC
So, how does that affect earnings?
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