What is the end game of the central bank hyper-monetization programme? What will happen when they stop?

What is the end game of the central bank hyper-monetization programme? What will happen when they stop?

Economists and financiers get the FUCK in here

bump

my nigga

they are preparing for the collapse.

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This.

The FED is printing money and purchasing these bonds because investors don't want them because of the low interest rates, and foreign governments are selling them off. Expect inflation to become increasingly larger every year until riots break out because of mass poverty.

>Insert Doom Paul meme here

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But I did listen, Doom Paul. I bought gold and silver just like you said. Though, the only thing that can get my dick hard anymore is the thought of constitutionally limited government adopting the gold standard.

I'm no economist but after the banking issues in '08 they flooded money to support the financial sector.

Printing money is supposed to cause inflation but it never did. This may have happened because the money that was flooded never made it to people (it sat in financial institutions).

The exonomy remained stagnate during the Obama era at low growth rates which also lended to the newly printed money not moving around very much thus spurring inflation.

Now the economy is ramping up, unemployment is lower and there's a possibility all the stimulous will begin to move thus causing inflation.

Historically, severe inflation happens quickly and central banks were late at calming it down before damage is done.

If inflation does begin, expect interest rates to rise, maybe a lot depending upon the severity.

Homes may become difficult to purchase at that point. Savings by individuals would be effected negatively also.

>FED buys bonds from banks
>Banks never expand credit because of "balance sheet restructuring"
>Banks park all their extra liquidity in more liquid assets
>Expect inflation to happen

Trumps tax cuts seems to be an actual effective economic stimulus, even Keynes said you have to cut taxes to stimulate the economy

Also his tax cuts are global in effectiveness, now other countries need to cut taxes to stay competitive, already in Germany business organizations are petitioning for tax cuts

What do you think about China, Japan, Europe selling off US bonds to the FED? Do you think this will negatively impact the dollar's value?

Also, do you think the commercial banks limiting their credit to borrowers will negatively impact companies dependent on cheap credit?

>no inflation
That’s a lie, inflation is just disguised by an increase in gibs and data manipulation. House prices, rents, and the general cost of living are all rising much faster than wages

Also, companies would decrease the quantity of their product rather than raise the cost of it. This is happening with ice cream cartons, which are shrinking but the price remains the same.

Now they sell (((frozen dessert))) rather than real ice cream, which is basically HFCS, thickening agents, and artificial flavor

bump

The real question is when.

In 20XX. Screencap this.

I'm not sure, but something bad is going to happen in the near future. Look, i love the idea of Capitalism and so far it has done truly amazing things. But inequality is now at it's highest point in history as well as growing at it's fastest rate in history. Sounds bad, doesn't it? Now you have the issue with automation and the fact that that all major academics, think tanks and institutions estimate that AI will replace over 90% of jobs. So, now you have a situation where a small group of people own most of the wealth and assets will the vast majority own very few. And now you look in the past and see what happens when there is inequality in such massive magnitude, people implemented stupid systems which led to the death of tens of millions of people. I wan't to believe Capitalism can survive, but honestly ask yourself, look deep inside yourself and really think if it can.

How can anarcho-capitalists defend this one? AI will replace jobs with even with the greatest minds and hardest workers. How can capitalism survive in a society where theirs virtually no jobs and one were even the best skilled training and highest intellects are replaceable?

>What is the end game of the central bank hyper-monetization programme?
They're trying to preserve the bubble in stock/land price that we're currently experiencing, so as to keep the (((elites))) from losing money again like they did in the 2007 financial crash, while also pricing out the middle class from ownership of assets to further entrench the power of the elite.

Wealth inequality is not bad necessarily, but the catalyst for this future social unrest will be widespread poverty juxtaposed with the few who live in extreme opulence. Most revolutions begin with a horde of hungry and cold people bitterly railing against the established order. It would not surprise me if current liberal welfare programs in the US are utilized to pay impoverished people to not riot, simply by keeping their bellies full and their minds entertained.

I don't really blame capitalism so much as I blame our debt-based monetary system which is dependent on increasing debts each year to stay afloat. Paper currencies were a mistake.

That's not at all what would happen. Whether on purpose or through sheer idiocy, the investors think the USD will be debased to nothing. That's not at all what any government does when faced with the choice of destroying the currency rapidly or defaulting. All of them default.

The reason is very simple. The "government" is people. Actually, the non reserve currency would have a choice of rapid debasing over default, because those people don't keep their cash in local currency. We are almost certainly headed for default that will not be called default.

Why? Because debt is irrelevant if debt financing costs are manageable in the budget outlays. That's why our debt is $20T. It's about the same debt servicing as always. It's not a problem for the government. If the debt servicing costs spiral, it's all over.

Why? Because then they have to debase currency to borrow more to pay interest. They may do it if its easy. But those debt ceilings are a constant problem now. They will not constantly fight over this. At some point they will just do something that is a default by another name.

It's obvious and it was done by every other country in this position, but people thing USD wipes out before the debt. It's not what will happen. When debt starts to inconvenience looting the budget, the debt will be thrown out.

It will server two purposes. Purpose 1 is the budget will get bigger, because debt servicing goes away. Purpose 2, the USD will suddenly be worth a lot more, because all this debt is money in the bank. Without that money there is going to be a massive shortage of the USD. So even if they have to print some USD instead of borrowing them, it's not even going to be close to matching the demand for the USD.

It's obvious what will happen, but investors think that the government will heed to their interests instead of the own government interest. And this is a classic situation where bankers get ass fucked.

Get a farm. Live independently. If the economy will inevitably crash no matter what people need to wean themselves off the system and live like they did in the past.

The kikes are going to be in for a surprise when we strip them of all assets and declare war on the banking cartel.

inflate indefinitely until ww3 init?

This is why I won't eat anything but Breyers.

Its pretty much as soon as Trump is out of office. The elite can't let another person like Trump muddy their plans so they'll push the panic button as soon as they can. They won't throw it all away on a whim but if anybody gets even remotely close to actually unraveling it all they'll take their chances.

I agree that it's odd there are people who bet against the USD as if it could somehow collapse. There are too many aspects of the global economy that are completely dependent on the dollar to function, I don't see how it could ever decline from its primacy. As time goes on the USD just gets more entrenched into the system, which means there's an ever-increasing incentive to use it. We've barely scratched its capacity for value. Theoretically it is infinite, bound only by availability of resources. Debt means nothing.

This is likely. Most of the US debt is owed to future generations of Americans who "loaned" it to the living government through excess money printing. Given that situation, there's nothing stopping the government from simply defaulting on debt it functionally speaking, owes to itself by destroying more currency than it's printing for a couple years. This would totally assfuck the bond market though, ironically punishing the people with their savings in what's supposed to be the safest investment.

Bonds are a meme and every government in the history of human civilization defaults on their debt 5000 years of history confirm this

All they had to do was listen to /our guy/ Martin Armstrong

>Its pretty much as soon as Trump is out of office.

could be sooner than you think

Collapse of the dollar

After bombing iran

pic related.

Well, the premise for the flight out of the USD is that debt is sacred somehow, and the USD is going to be sacrificed servicing a book keeping tool, which is what the current government debt is. I get that it;s a selling point of the treasuries, but the government has no recourse if they default. I doubt any court will even find that treasuries are even a contract. There are no investor protections implied in the treasuries. It's all faith based, and there is nothing you can do to the US government if the decide to do whatever they want with the debt. So why would they sacrifice the ability to issue reserve currency to maintain the facade of matching payments with the treasuries? They will until they will encounter issues. The second it causes inconvenience, the debt will drop. But now people believe that they will do anything to honor the debt. That's why USD is sold and money flees to anything to protect against the debasement that will not happen. What probably will happen is the surge in USD the second treasuries wipe out. All that "money" will wipe out. All that debt servicing is not going to the treasury holders, but to the budget.

Eventually USD will wipe out, but it will happen way before they default of treasuries. And the other thing that tells me that the USD will spike on the default is that US CDS are priced in Euros. The people buying insurance against the default will not even get paid properly.

No second term?

Retarded pic, theres no fucking Y axis you mongoloid

I think it's similar to what happened to mortgages in 2007-2008. They became non recourse debt. People could borrow to speculate on housing prices going up. People who strategically defaulted didn't plan to use mortgages as they are conventionally used. It was a risk free money for them. The second they realized that they lost on the houses they bought to flip, every speculator defaulted. Banks painted the false narrative of what happened. Either by idiocy or to cover up something.

US government has the same non recourse tool at their disposal. It's just called differently and it's priced on reputation. There is no such thing as reputation when the government can walk away with trillions. If they can do it legally, and they can, they would. They wouldn't do it while they benefit from the arrangement. The second it becomes a burden, you will find out that the treasuries investors enjoy less investor protection than buyers in a grocery store.

Globalism is holding back wages. It gives too much negotiating power to capital and this power is used to keep wages down despite the increase in productivity. Inflation will not come as long as this continues, unless money is printed straight to the people. This helicopter money will be introduced in the Eurozone come the next economic down turn. Then it will either break the Eurozone or break the connection between labor and income.

These banks had to resort to these means to keep the economy afloat and stimulate it. Now depends what the first goyim fed chair in God knows how long does with interest rates. If he is aggressive with the hikes you can expect a recession in the next 1 to 2 years, even longer if he's slow. Gotta keep an eye on the yield curve of government bonds, bond market will tell when bear market is imminent. The NoBs or 2 and 10, so you gotta look at the spread between them. When the yield curve inverts, (long term bonds yield less than short term bonds,) there will be a recession, bear market, maybe even a crash. Right now the yield curve is still normal, but has been flattening, signaling this is still late bull cycle, once its flat and inverts best sell your stocks. They move slow and you gotta keep an eye. Pretty much every bear market has been preceded by an inverted yield curve

Its confusing cause and effect. Curve inverts because the FED cuts rates when the recession starts. They do it for monetary stimulus. So long dated paper implies lower yield that the current yield for short paper. Because the policy will change in the future. If the government decides to default it's not what will happen. The curve will suddenly flatten across the board. Because it's a standard emerging market trade on credit. Buy long dated paper, and short short dated one to protect against the default. Really flat curve is even worse than inverted curve for us now.