Environment has become supernatural
The only thing keeping this market higher right now, is the promise of quantitative easing! It's all about easy money. Nothing else matters any more. World economy is turning into Japan - country with endless QEs.
St. Louis Fed President James Bullard came out yesterday, as stocks were negative and said:
"Federal Reserve normalization is now at an end"
So let's translate that! The Fed is done normalizing their their balance sheet, and being that normalization is at an end....what he's really saying (and this is the translation) :
Okay, abnormal monetary policy will now be instituted, which will include more quantitative easing. Quantitative easing is an extraordinary monetary policy, only used in extreme circumstances and generally the world central banks maintain a "normal" monetary policy.
Larry Kudlow said : "interest rates may never rise again in my lifetime"
I guess we all kind of knew it. And then we'll go back to
Bullard who's saying that the Federal Reserve normalization is at an end
The groundwork is being set up! Rate cuts, more quantitative easing.... JUST LIKE JAPAN!
I guess you already know what happened to Julian Assange. So we all know about the arrest of Assange. This is just one of the reasons, why I despise the system that we have. Why I despise politics, the lies that are being propagated with you?
Remember how President Trump raised WikiLeaks over and over and over again on tweet storms about how great WikiLeaks was? Well.... the US president said he knows nothing about WikiLeaks.
Now just to save you a little bit of research on your own, this is what he said ....
on October 10th 2016 : "This just came out - WikiLeaks! I love WikiLeaks"
Two days later 2016, "WikiLeaks stuff is unbelievable. It tells you the inner heart. You gotta read it."
One day later: "It's been amazing what's out on Wikileaks"
and in the last one Trump said " This WikiLeaks is like a treasure trove"
These are tweets from the President of the United States who just said he knows nothing about WikiLeaks!
....and yesterday - “I know nothing about WikiLeaks. It’s not my thing”
More about that on DailyBeast
Businessinsider
Recovery or "Economic boom" or....
Just go to our economy. We have recovery in all the western countries - so they say.
We have no economic boom whatsoever! Don't take my word for it, just look at the money velocity. The rate at which cash is moving through world economy is near historic lows, specially in US and Europe.
OK, you cannot have an economic recovery or a boom without the money velocity moving higher. This should make absolute sense to you.
Hi @worldfinances
Most of these economic concepts for me are Chinese.
However, I have the impression that the economic crisis is not just happening in my country.
All I know about the velocity of money is that is an inflation gauge, according to Investopedia. So are we in the presence of a global financial crisis?
If you want to know what money velocity means, I can tell you, so you will understand completely ;) It means: The number of times, each unit of currency changes hands (or bank account owner - if it is transfered from one account to another)
So, let's say I buy some coffee in coffee bar. I pay 1€ to the waitress. She uses same 1€ coin later that day to pay the bills or buy loads of coffee for work. She tips this 1€ to the coffee delivery driver. And the driver uses same coin in the evening to buy a condom :)
So one coin was used in 4 transactions in one day. 1€ bought 4€ worth goods and services - it circulated 4 times.
So....if velocity as whole is low, it means people are not buying things (any more). It means sellers and producers are in trouble. It means, the economy is in extremely bad shape.
At the end of the day ... it's all about money flow, isn't it @worldfinances?
When money flow slows down then economy is in real trouble.
Yours
Piotr
Yes, indeed. That's why QEs are for. To pump up the market, because it is almost dead for few years now. Trying to pump the velocity up. But because we are living in financial fascism, top 0.001% always get financial help from the states, from the QEs, just to keep those companies alive, while other citizens can only dream of "helicopter money" to get to their own pockets.
That's why we still do not see bigger financial crash in US/EU/JP/AU.... but with every QE, average citizens are robbed blind. QEs should be called robbery
Dear @worldfinances
I just realized that (somehow) I've missed your previous comment. Just wanted to thank you for being always so responsive and sorry for such a late reply.
I'm still a bit confused about QEs. Can money be created without debt being also created?
Yours
Piotr
Now I've got it, thanks!
no problem ;)
What do you think, @worldfinances, how much of his time this slimy mite left?
Upon his own words....not much :)
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Dear @worldfinances
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).
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