“You cant taper a Ponzi Scheme” – Mitch Feierstein @planetponzi
“A quick, if familiar, observation to start the day courtesy of Bank of America which in the latest overnight note from Michael Hartnett notes that central banks (ECB & BoJ) have bought $1 trillion of financial assets just in the first four months of 2017, which amounts to $3.6 trillion annualized, “the largest CB buying on record.”
[Editors Note: Eventually bond markets will overpower central management of interest rates through QE,but if governments are to kick the can and try to keep interest rates low, the amount of currency creation needed by governments to offset a sell off in global bond markets will become more and more colossal; a bullish scenario for Silver,Gold and Bitcoin]
“The other meaningful number is 6.620. That’s the average interest rate the US government paid on its various debts in 2000, the year before the great monetary experiment of QE, ZIRP and all the rest began. When talking heads at the Fed and elsewhere refer to “normalizing” interest rates they’re proposing a return to this 6% average rate.
Run the numbers on today’s obligations and you get, well, let’s see:
$20 trillion x 6% = $1.2 trillion a year in interest expense. To put that in perspective…
It’s $15,000 a year per family of four, or about a fourth of what the typical American family earns.
It’s 31% of the federal budget, which would mean massive cuts in every other spending program.”
Since 2008 the world has been flooded with $60 Trillion in additional debt to prevent all major financial assets from returning to fair market value.
In the process central banks and their endless monetary stimulus have created an alternate reality, the ultimate imaginary setting.
From Wikipedia – “Virtual reality (VR) typically refers to computer technologies that use software to generate realistic images, sounds and other sensations that replicate a real environment (or create an imaginary setting)”
Nothing in this reality is real and the central banks can pull down this illusion at will (as they have repeatedly down throughout history) leading to epic wealth transfers too the financial elite.
If you want to know how far from reality we are and how fundamentals area long lost relic of the investment world , replaced by endless currency destroying stimulus and Zero interest rate policy; Look no further than this headline.
Hopes of Bailing out failing banks is Bullish in Central bank driven virtual reality.
The worse thing about the open air prison & financial repression dolled out in central Bank virtual reality world used to be that we could not escape it.
But thanks to Bitcoin we can now take off the central bank virtual reality headset and get back to fundamentals and reality; and as more people make the same choice, reality will start to become much more attractive.
Britain’s new finance minister Philip Hammond declared Tuesday that it was up to the Bank of England to respond to the economic “shock” arising from Brexit.
“The initial response to this kind of shock must be a monetary response by the Bank of England,” Chancellor of the Exchequer Hammond told lawmakers at the House of Commons.
What will this mean for global markets and the future of the European Union? That remains to be seen, but they are definitely scheming to make sure that the City of London is protected at all costs, and even at the expense of other parts of the economy.
“To summarize, the exact same people who ruined the world bailed themselves out, avoided all accountability and continue to call the shots. These are the men and women we know as “the experts.”
“To the status quo technocrat, this is a lifelong position. They consider themselves to be the wise indispensable elders required to steer the world in the appropriate direction irrespective of any and all calamities they cause along the way. Unfortunately for us, history shows us that the biggest disasters happen precisely when you combine such expert arrogance with unbridled power”
“Bitcoin is not a simple transition to a new medium. It is a paradigm shift. Every assumption about what money is, how it is stored, who should control its production, how it is transmitted and managed is turned on its head in Bitcoin”
“The true background story of Bitcoin is a deep dissatisfaction with the fiat currency system that steals money from the poor, fuels war and destroys economies. It is the State and its fraudulent money that was the sole driving force behind the creation of Bitcoin”