VECKA 17
Onsdag
24
April
BT-annons
2020-06-09
photo


A formula for disaster
Om 10 år kan vi se prisökningar på 50 procent om året enligt Bill Bonner.

QE progress report

Reserve Bank credit, or the Fed’s sum total of interest-bearing assets, rose to $6.922 trillion, up a cool $180 billion sequentially (that’s more than double the prior week’s $78 billion increase from May 7). 

The latest shopping spree pushes the growth rate to 606.6% on a three-month annualized pace and 74.9% year-over year. 

Decades of Keynesian policy have crippled the Japanese economy. Only a turn toward free markets offer a real way out. 

Central banks have decided that one of their main missions is to prevent deflation. But this only ends up causing the malinvestments that lead to economic busts. 

We live in an age when politicians decide what is "essential" and what isn't. It's a grave abuse of power and common sense. 

Panic over the COVID-19 virus has led to the closure of many schools and new forays into education outside the government school system. Many will find that they don't need the state's schools at all. 

The ECB can disguise the risk for a while, but the reality of the mounting debt and tax burden ahead is probably going to end in a debt crisis. 

Does anyone remember, during the last financial crisis, the “evil bankers” who almost collapsed the entire financial system?

Then, in order to save the world, the Fed provided loans and bailouts to those same bankers? 

US government debt is spiraling upward, with debt-to-GDP rising to World War II levels. How long can this last? 

Determining which businesses shall be open and how many people shall be allowed to gather is just another form of central planning. And central planning schemes have never ended well. 

Necessity is the plea for every infringement of human freedom.

It is the argument of tyrants; it is the creed of slaves.

– William Pitt the Younger, former British prime minister

America’s paper money system began on August 15, 1971, when Richard Nixon somberly announced the end of the Bretton Woods system that fixed the U.S. dollar to gold.

We’re 49 years into it already.

In 10-20 years, the cycle should be complete. By then, prices should be rising at 50% or more per year.

And if we’re right, the fake dollar – the green piece of paper that is in your wallet – should be history. (Bill Bonner)

“This is a formula for disaster. You’d have to have a Ph.D. in economics not to see it.” (Bill Bonner)  

 

 
Göran Högberg

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