Central banks own 35% of everything and must continue buying to prevent market collapse. How long can it go on /pol?
Just A Reminder
Noah Cruz
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Lucas Phillips
Good. I hope they end up owning 100% of everything in the world. I trust the central banks to deliver and always help out the consumer when possible
Aiden Thompson
I'm not sure what this means, please explain more.
Liam Garcia
"Quantitative Easing" (QE) is how we "recovered" from the 2008 financial crisis. it means central banks buying financial assets like stocks and corporate bonds. It helps prop up the market, but now they own over a third of the entire market. They have to sell eventually and when they do, the effects will be unavoidable
Matthew Reyes
Where's the problem.
Logan Long
the problem is that when central banks "buy" something the money comes straight off the printing press, diluting the currency and creating a false sense of growth that is only sustainable in the short term. Keynesian economics on a grand scale is a pretty easy game to play but how do you stop once the "recovery" is complete? you can't because all that growth disappears if the fed ever normalizes the balance sheet
Jeremiah Brown
Still not seeing the problem. You clearly don't know what you're talking about.
/thread
Jonathan Johnson
maybe make an argument about how everything is awesome in this scenario?
Christian Perry
(I already /thread'd this thread which means it's over.)
Asher Turner
haha ok good point you win
Eli Nguyen
Daily reminder that the Rothschild's own nearly all central banks.
Jeremiah Martinez
If the central bank ends up owning all of the assets, how the fuck is the economy going to work?
Monopoly style reset or something?
Otherwise it will just become something similar communism with a bank at head of state.
Evan Evans
It'll continue until it can't.
Jackson Ramirez
2 possibilities: 1) the CBs continue their printing and buying scheme, diluting the currency like a rug being ripped out from under you and your cash buys a lot less than it used to, which is another way of siphoning real value from the economy and consolidating it at the top. or 2) they are ending the scheme soon and sell off assets resulting in a 30% market correction. which is more likely?
Isaiah Walker
Zim- I mean, Rhodesia - they bailed out their banks with printed money too. For a while (quite a few years actually) it stayed in the banks and didn't get out into the general economy, just like what is happening with our banks now.
However, it eventually served as a 2nd or 3rd stage of the hyperinflation rocket later on, when the banks realized that all that printed money was inherently worthless and they shat it all back out in desperate move to acquire tangible goods, anything that would hold value.
Evan Garcia
Carter Walker
sounds familiar. phase one in the US was bailing out the banks with printed money. phase two pumping the stock market happening now.
Hunter Cruz
See: Inflation
See: Higher interest rates
Benjamin Rogers
That too also happened in Zim- Rhodesia. Stock market became almost bulletproof and went up up up up.
Adrian Cox
higher interest rates are indicative of a functioning economy. We can't raise them now because free easy money is the only thing keeping it going. we're at historically low rates and even now people are fearful of any increase
Luis Murphy
In US QE bought Gov. bonds so when they mature the gov. will pay the gov for what they bought. This should mean that they will have to stop printing new $$ for what they already got. It is insane thx Obama...
Austin Flores
well, the fed isn't necessarily the government though they work hand in glove