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Old 03-19-2019, 03:06 PM
Danny B Danny B is online now
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,434
Print money to save jobs,,, just keep the wages low

I find excellent articles at Zero Hedge BUT, when I log on to their site, this is what it does to my computer.
As everyone knows, the rich run the government, not the voters. The rich in a high-wage country will always try to force wages down to compete with low-wage countries. Here is a good article showing how the Aussie government has passed numerous laws to destroy collective bargaining and depress wages.
This has come full circle to where the global mean wage just won't support anything except a survival economy with no discretionary spend on things like children.

Years of research shows that; when sovereign debt crosses the 80% of GDP figure, investors are driven away. States have always needed outside investors to buy their bonds.
3/19 Japan’s debt passes 250% of GDP – Asia Times
Since the BOJ is printing fresh money to buy GOV debt, there is little worry that investors won't buy it. The BOJ also owns 70% of exchange traded funds. They are buying up everything that isn't nailed down.
Armstrong laments that Draghi has destroyed confidence in the European sovereign debt markets. Wait a minute. As long as Draghi and Kuroda keep printing, they don't need to worry about confidence. Japan has hit 250% and hyperinflation never appeared.
Was this a test case to see if MMT could be implemented without inflation risk?
3/18 “Euro’s failure magnified the difference between eurofication and japanificiation” – ZH
They're working out the details.

If only the CB has a printing press, EVERYBODY is dependent on the CB for liquidity. That includes the banks. Will the State / CB take over the private banks if / when they crash?
Is this a prelude to "euthanasia of the rentier"?
Just how long can the fantasy bubble keep going?

"Nonfinancial corporate bonds outstanding in the U.S. grew from approximately $2.2 trillion in 2008 to approximately $5.7 trillion at year-end 2018…"
The BOJ has pumped in trillions by buying exchange traded funds. Governments worldwide are buying up corporate paper to keep the zombies alive. After all, the Zombies employ lots of people.
The State has a choice. Keep people employed working for the State and the zombies OR, let it all go and lose legitimacy in the eyes of the population.
Good article on the decline of globalization.

Government is growing faster than the private sector. That has never worked out before.
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