Wtf is the economy even real? These central banks are inflating the tits off the global economy, every asset group (except commodities) is above its previous peak in 2007-2008 based on no real dynamic growth in the economy. What happens next?
zerohedge.com
At one point the Bank of Japan said it was going to purchase ETF's that didn't even exist. It was essentially a signal to banks to create the ETF's BoJ wanted to buy. It's all a sham at this point.
it`s all just made up
central banks are just made up fictional entities
we should stop believing in them
Don't worry, it'll be fine. Don't buy food, ammo and gold.
Thanks UN. Can you tell Hiroyuki to make us a BIS flag to post under?
Fractional reserve banking is at its end.
This chart should scare the fuck out of you. Notice how growth used to be independent, and above the monetary supply. That meant real value was being added.
Since 2009, the only reason stock prices have been rising is that they're inflating right alongside the monetary base. That is, there has been no new value added at all, and zero real economic growth.
There is not enough money to go around. The only reason the world economy has not completely collapsed is the petrodollar.
Once interest rates rise even slightly, or if the petrodollar is abandoned, we're going to see economic carnage like never before, and millions are going to die.
And failing either of those things happening, hyperinflation is not far away.
All these fictional financial enterprises conjured up by bankers represent economic malinvestment and destroyed productivity. The numbers stay propped up but the middle class shrinks and shrinks..
I don't understand the implications of this data. Can someone summarise?
I'm convinced China is expecting significant inflation of the USD (and others) due to QE for the last decade and are no longer buying US bonds but instead they are purchasing land around the world. Land will hold its value more than currency then the bubbles burst.
.................................. and then?
as longer as it works why complain?
its not like democracy is real in japan anymore to begin with
or something bad happens if it reaches 100%?
Central banks print money and have to get it to the public somehow.
Usually they 'lend' it to the government.
The japanese governemnt is under so much debt it can't borrow money anymore (so the central bank can't keep printing).
A while ago they had an ingenius idea. What if they printed money and used it to buy stock. That way they could get the printed money out there.
They now own in some ways 75% of all stock due to their printing habits.
They are doing whatever they can to avoid the truth: They are printing money out of nothing. There is no backing, no matter how much they loan to the government, or trade for company stock... it's all just worthless printed money in the end.
They're trying to drag it as long as possible until they have to admit that.
Buy gold bitches
even if the aknowledge it I am starting to think nothing will happen
give me evidence that this model is unsuteinable
for what I can see as long as they dont print to much and/or suck enough of it of the market everything should be fine
Cheers
>Once it decides to stop buying, or even start selling, it’s not clear what the stock market impact will be or who will buy that amount of ETFs.
Literal happening in Japan. Any other governments doing the same thing?
you realize what your doing amounts to spamming, you can't keep shilling your thread in every other thread it's against rule 10
Good goy, keep ignoring the fact that we're issuing more currency than we print
Todo está sustentado en la confianza del mercado, si algo malo pasa como un terremoto y todos quieren vender, todo se va a la mierda.
Well it's probably not very good for the companies to be propped up by the government in some quasi capitalist socialism.
The companies become more inefficient because there's no motive to grow when you're rewarded for existing.
There's also the problem of inflation.
What good comes from such overt market control? It's basically Venezuela now where instead of survival of the fittest it's protected by the government.
chinas gold oil backed yuan is about to turn on, prepare your anus
Finally someone who understands the signifigance of our petrodollar. Our only hope is to get a new standard for our currency
I heard rumors china and Russia were pooling their precious metal resources to basically put oil on the gold standard and btfo the petrodollar
china has a gold backed yuan getting multiple oil lines coming right now. Petro dollar is fucked.
Based glorious Nippon
if you push me to answer you there you have it:
>The companies become more inefficient because there's no motive to grow when you're rewarded for existing.
I would answer that with the rise of artificial intelligence this companies no longer need motivation, the AI would yes or yes push for the survival of the company
>There's also the problem of inflation.
If you suck enough money of the economy through taxation... or even through the money influx into this companies you shouldnt have to worry about
Japs are ones of the most indebted people on earth
>What good comes from such overt market control? It's basically Venezuela now where instead of survival of the fittest it's protected by the government.
Its true, but japs arent retarded and leaving it without AI you get rid of corruption, one of the fault lines of socialism
I dont like it but I dont like capitalism either, but the traditional argument has been "it works"... so if it works... why you bitch about it?
yep china has most of the worlds gold if im correct, but they btfo us because we were retarded to sell our fucking gold, blame tradeu aswell canada had an amazing amount of gold, they sold it right to china. Now russia has been mining diamonds out of volcanoes and shit. Chinas mostly leading everything and making the brics more powerful.
Look at the Middle East though, we will burn the world before we let our economic interests be threatened
well, you cant burn china or russia;
I am eager to find where does this challenge to the petrodolar will end now
now that could happen, or the (((elites))) could just run to china and fuck up china thats kinda the plan if you think about it.
>shift west to east
>run to the biggest economic gainer
>fuck up the last super power
>(((elites))) win again
Interest rates determine people's savings and pensioner's income as well as the majority of 'safe' money in the world.
The central bank sets the interest rates.
The central bank prints money and lends it to the governments.
2008 left governments very very poor because they had to borrow a shitload of money from the central bank to bail out the commercial banks.
The governments have too much debt now and they have to continuously pay interest to their lenders. This means less gibs, social programs, police funding etc.
The interest rate is set by the central bank.
The central bank keeps the interest rate very low, because they KNOW that should the interest rates rise, the governemnts will go bankrupt because they're standing on a mound of TNT's equivalent of debt. Rising interest rates would light the fuse.
However the central bank forcing the interest rate low is in DIRECT CONTEST with the first sentence I said. People, especially old wealthy people NEED high interest rates to survive.
They put up with it for a while because generally the government is meant to pay off it's debts and let the interest rate rise as the economic cycle contracts naturally. That's not happening.
At some point people will refuse to continue to invest money at the specified interest rates and will only lend at higher rates. The central bank can step in to print more money at that point to act as a lender of last resort to the governments, but that just digs the hole deeper, more debt... out of purely printed money.
This, the petrodollar is over, ever Venezuela now accept whatever currency.
>I would answer that with the rise of artificial intelligence this companies no longer need motivation, the AI would yes or yes push for the survival of the company
Then if every country in the world has AI there will be parallel efficency, minus the cost of labour, and Japans companies will still be overvalued.
Keep in mind you're hedging you're justifying market value of a company today based on what could happen in a magical fantasy where AI makes optimun decisions which is decades away. We won't be sitting here in 2027 discussing how all managerial positions are robotic. I feel like everything I read after this is a waste of time because you're stupid.
>If you suck enough money of the economy through taxation... or even through the money influx into this companies you shouldnt have to worry about
Japs are ones of the most indebted people on earth
So the Japanese people, who the Japanese government represent, is going to be rewarded by being taxed more for less services and giving free money to robot companies, and there's no problem with that?
>I dont like it but I dont like capitalism either, but the traditional argument has been "it works"... so if it works... why you bitch about it?
You've never heard of a bubble? Lots of things work until they don't. The fact you hate capitalism and don't understand economics or peoples motivations or efficiency or the unlikely role of AI in managerial positions or bubbles does not surprise me.
Except that China is an overpopulated, polluted shithole. All the rich Chinese are moving to anglosphere countries.
Fractional reserve banking / the banks aren't the problem, the central banks are. The normal banks can't just print as much as they want out of thin air with no strings attached. But the central banks can, and have done so extensively over the past decades, especially since 08. The balance sheet of central banks all over the world total more than $20T today, this is nearly a third of the worlds GDP. This is what have distorted the markets and will lead to the propably worst financial crisis in history.
We would start ww3 before we let the petrodollar fall. It would be less devastating.
Correction, the Chinese are conquest/buy Anglo countries.
/devilsadvocate
okay... guys... but "things don't always get better over time" financially?
...
i'm literally shaking...
All part of the plan to finalize the creation of the one world electronic currency then we will be slaves forevermore.
so.... the japanese government owns the means of production?
jaja this
>zerohedge
>The normal banks can't just print as much as they want out of thin air with no strings attached.
Do you understand fractional reserve banking at all?
Do you?
>Fractional-reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, and holds reserves equal to a fraction of its deposit liabilities.
China's already in this shell game. Back in 16 my dad at his SinoSteel (sub. of 48 state zombies) was lacking in operating funds. 17 he was fine and receiving nice bonuses as well as sudden explosion in work projects in his machinery/transformers/etc importing section. Before there was the looming prospect of economic tailspin as everyone and their mother told the other of inflation in the cities, and 55% unemployment in the entire northeast. Now I know where.
Guise this is literally micro 101
It's a way to create wealth
kill japan, im completely paying attention.
BOJ is dealing with the national debt by buying it all up with free money.
They now hold about half the debt and still no sign of inflation. Best solution.
>dude why didnt we just use central banks to buy the means of production?
Japan's becoming a commie country to punish them for not taking migrants.
Who (((controls))) the BoJ?
>create wealth without work
Sure thing Schlomo
They don't "print" money they just use their customers money and like the name says hold a fraction. The whole system operates on the pretense that their won't be a run on the banks, because then they will become insolvent
>still no sign of inflation.
tochi.mlit.go.jp
I take it you neither rent nor own your own home and the price of residential land is not significant to you?
>makes loans or investments, and holds reserves equal to a fraction of its deposit liabilities
A bank doesn't loan you money from their vault. They print it out of thin air, and give it to you. The only reason they need to hold a fractional reserve is because of the law, and those requirements are not always stringently followed.
Only central banks can print money brah
The banks are needed to create liquidity for a healthy economy. Yes they print the money out of thin air, but like i said there is a limit to how much they can print, and they have to pay all that back, so the interest on the money they lend out is determined by the risk of that money not being paid back, it's all logical and has worked well for hundreds of years.
Give it to me straight smart money guys, should I be killing my neigbour and stashing his body in my chest freezer so I have meat for the lean times or should I wait for a couple months first?
kinda flying over the edge there buddy
I believe the natural level of inflation over time should be around 0, like it how it was for hundreds of years until we began the central bank experiment. After the huge economic boom in the 60s and 70s when the women entered the labor force, I think the natural state would have been a period of deflation, which is only healthy, instead we started the great distortion which is probably part of the reason why the middle class has lost purchase power since then.
i took $50k out of bitcoin @ $4400 and bought gold @ $1333. gold @ $2k by christmas
You mean that anons arguing that luciferians would rather create WW3 than lose control were right ?
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I took $5 million out of bitcoin @ $10,000 and put it all into tendies
That would be the central banks
I'm uncomfortable investing this much faith in user but I guess I'll trust you and shelve the homicidal ambitions.
its fine, but try becoming a team with your next door guy or gal. Might work during the apocalypse
so, where will be the next conquest war at? Africa ? Asia? they have to get money from somewhere at some point to pay their debts
I don't understand why you shill so hard for fractional reserve lending. I'm as pragmatic as the next guy and I get that the banking system needs it to some extent to maintain liquidity but it's gone way too far. Somewhere around 50% reserve seems sensible.
Middle East.
so they are depopulating it for easier conquest and an added bonus is all the spending from welfare , right ?
I never said the current form was perfect, just that we do need some form of it. Not even sure what the capital req is today, like 5% or something? a 50% req sounds high but perhaps 10% or so would make sense as long as there are limits on risk concentration aswell.
wtf are ETF's? can you eat them?
Does that nippu get eaten?
Aaaand that's the reason Japan needs more immigrants, right?
It's 10% here and the financial crisis demonstrated that the banks will get saved at the taxpayer's expense. It's moral hazard in the extreme. Also, the same people who run the central banks (which are actually private entities) run the regular banks too.
Maybe... See for yourself!
youtube.com
even that has its limits, I'm afraid we will need a Caesar-like man to guide us through the anarchy when the bread is too expensive
What's long with it? No dangerous inflation, it's all good
Inflation is only "dangerous" if wages don't rise to match.
>no vore
gay
So what does an average person with a moderate amount of savings do to protect themselves and their family?
Silicon Valley here btw
Arable land
>it's a "Rothschild central bank purchases non-existent shit" episode
Theres no way that this would lead to an apocalyptic scenario though no?
And in general is legitimately possible for a first world country to be left burning their currency for warmth and live in literal collapse? I have no reason or logic behind it, but it just feels like that it's impossible for things to get that bad.
imo arable land should be the first thing a freeman owns. after that he can buy property in cities close to work, but if you don't have that base you're always one shitty year away from having nothing but a shitty property in a shitty city that doesn't produce anything
where is good arable land ?
africa ironically, 'cept the niggers are too retarded to farm
midwest, there's a giant band of unpopualted arable land running from southeastern us to northwestern canada/alberta
More than enough to feed everyone in north america
what'll really cause problems is logistics
no oil + no ev alternatives = ur fuked
militants blockading roads = dbl fuckd
...
>Theres no way that this would lead to an apocalyptic scenario though no?
Probably unlikely. I think we are in for a long recession as the debt bubble deflates, something like 10 or 20 years without growth. Worst case would be if we stubbornly keep the zombie economy chugging along for 5 or 10 more years at which point shit will come crashing down much harder.
In any case the economy will go from easy to hard mode at some point and I think this will generate a lot of discussion about how we get back to the good times, which will probably lead to a more negative sentiment towards the racial laggards dragging us down. So some good might come of it.
It's like (((they))) are doing all this on purpose or something...
I'm so sleepy.
im retarded. someone explain the significance and consequence of this
japan is over
we need immigrants
debt saturation.... that's why they are harping all the time about GDP growth and importing all th shitskins. the system will literaly collapse if people don't multiply like rabits.
your Canadian dollars are about to become worthless, your pension is about to do the greatest disappearing act in human history I hope you've got some gold
japan is printing money in order to buy and hold assets so that the paper value of those assets increases, making it look like there is economic growth when there is no fundamental growth.
Nah, thats Kalegri, those newcomers are nothing but drain to the system.
my opinion is that kalegri was to be a gradual plan, fairly under the radar. whiles this "migration crisis" reeks of desperation
Pako are you are memeing? Because you sond reasonable.
ETFs are gay asf but Japan's Soft Bank is definitely a player
I hope the Canadian dollar tanks my portfolio would do well except the exact opposite is happening