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Old 03-12-2019, 04:15 AM
Danny B Danny B is online now
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,491
The ECB shoves the fiscal transmission into reverse.

"The development flies in the face of the European Central Bank’s recent decision to launch a fresh round of stimulus to prod eurozone banks into lending and shore up the single-currency bloc.
Banks across the eurozone have started to purchase their own governments’ bonds "

" Currently, Italy, Spain, Greece, and Portugal all borrow more than they deposit and more tha $800 billion from the previous TLTRO is set to mature over the next two years. Without the extension of the program, defaults could rise sharply.)"
So, the banks need buyers to roll over 800 billion. The ECB is sending them "stimulus".
So, the CB prints "money" because the banks need to roll over loans that nobody will buy. In turn, the banks buy GOV paper.

"Australian households are among the world's most indebted when compared with their income."
"The end result? It couldn't cut rates if it needed. That would add heat to a dangerously inflated housing bubble. And it could never raise rates, because that would kill household spending."

"Of course, given the Government has already been running a “quasi-MMT” program for the last 30-years, the real impact has been a continued shift of dependency on the Government anyway. Currently, one-in-four households in the U.S. have some dependency on government subsidies with social benefits as a percentage of real disposable income at record highs."
MMT suggests correctly that debts and deficits don’t matter as long as the money being borrowed and spent is used for productive purposes.
You see this everywhere. The money is NOT borrowed.
GREAT graphs,

3/11 Socialist revolution: The price (crony)capitalism pays when greed goes unrestrained – GR
3/11 Tax collectors chase rich New Yorkers moving to low-tax states – CNBC
NYC Dangerously Close To Bankruptcy

"Eric Peters: "Everyone Is Wondering What Exactly Is Wrong With Europe""
"The truth is that a currency union is destined to fail without fiscal union. And fiscal union is doomed without political union.

Europe’s architects believed their citizens couldn’t handle that truth. So they locked themselves into a structurally flawed currency union almost impossible to exit, hoping to backdoor their way into fiscal and political union without their subjects quite realizing it. It’s the lie at the heart of Europe. "
The European States have a 1 trillion deficit. Germany has a 1 trillion current account surplus. Locking them all into a fiscal union would "equal" out the difference.
3/11 Brexit bombshell: a German Brexit? A scandal of subversive statecraft – Politicalite
The Germans need to Grexit post-haste to keep their 1 trillion

Americans are # 11 when it comes to debt. You Kiwis have done quite well for yourselves.
3/10 AOC slams capitalism as “irredeemable” system – Zero Hedge
Does the silver spoon get in the way of her talking?
Armstrong, "The government in Finland resigned on Friday after they failed to come up with reform to cut costs in healthcare. Between that trend and government pensions, these two forces are putting pressure to keep raising taxes and lowering the standard of living for everyone else. This is what I mean that we are in the stages of a collapse in socialism."

3/11 Chinese credit growth unexpectedly crashes in February – ZH

Stocks seem to have hit a bump in the road.
This is a crosspost but, it would definitely affect markets.

ALL the CBs have talked about or,,, tried to raise interest rates. The FED is the exception,,, for now.
China goes on a gold buying spree. Why now?
"Financial analysis published two weeks ago by a major Italian newspaper, Il Sole / 24 Ore (The Sun / 24 Hours), asserted frankly that central banks have been using gold futures and derivatives to suppress the monetary metal's price so they can obtain more of the metal less expensively in advance of its remonetization under new rules promulgated by the Bank for International Settlements to take effect March 29.

Of course the new BIS rules, the "Basel 3" standards, declaring gold in the vault to be a superior asset, equivalent to cash and government bonds, are not news. What's news here is that a mainstream financial news organization has nailed the deception and intrigue of central banks and accused them of rigging the international gold market."
So, gold is just as good as government bonds?
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