RE: Environment has become supernatural
Dear @worldfinances
"World economy is turning into Japan - country with endless QEs."
It may sound like a silly question, but what does it actually means? I'm not familiar with Japanese economy model and also don't know what QEs means.
I understand that it stands for Quantitative Easing but it still means very little to me :) Would you mind sharing moe of your knowledge? (I know I can google it but then probably we would not have a chance to have discussion).
The rate at which cash is moving through world economy is near historic lows, specially in US and Europe.
One thing I've learned while ago that "money flow" is everything. If money flow is slowing down, then world economy is in trouble.
ps. I hope you don't mind that I will share this post with few close friends, as I found it quite interesting and worth reading.
Enjoy your monday,
Piotr
Thank you for comment. Well, to understand QE it's important to understand that it essentially entails the central banks buying bonds to keep interest rates down, encourage lending and stimulate the economy. But what they are doing, is keeping low (or even zero) rates for big fishes, while average Joe is paying same rate as before. It helps to bring duo/monopol into the economy, and the result of that is bigger prices of "everyday stuff". And no one can get anything from savings in the bank as QEs are helping to get whole economy to negative interest rates. That means you have to pay, to have you money on the bank. And it will happen. We are seeing this trend in last 20 years, but mostly in last 10 years. But the positive thing is, that people will start to look for something different. And I think that here, crypto currencies take their place big time.
Dear @worldfinances
Thank you for that amazing reply. I only had a chance to read it now. Appreciate.
I found this topic seriously very interesting and I even had a chance to watch few youtube videos. It only made me realize that I really don't understand process of money creation any more.
I used to believe that every currency "printed" (or added to the system) need to be backed up by some debt. QE doesnt seem to be backed by anything at all. So confusing.
Indeed. Bank already is charging me every month for "storing" money on their account. It may not be much, just few $$$ a month ... but still.
Yours, Piotr