With all central banks around the world, pumping liquidity into the market for banks and other institutions to access over the past few months, does this not have an affect on interest rates, money supply and inflation?
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With all central banks around the world, pumping liquidity into the market for banks and other institutions to access over the past few months, does this not have an affect on interest rates, money supply and inflation?
Some argue, in central banks propping up asset prices, they are stealing from younger generations. Firstly, it is younger generations' productivity that has to be borrowed from to make the loans to the commercial banks, and secondly, the asset prices are held at a level where many cannot afford to buy them. This has been a big part of the logic of the D&G set, and GHPC. In some respects, they are right.
The winners are the banks that get a cheap loan from the taxpayer's future work and toil.
The losers are the taxpayers who as a group end up less able to use future income for replacing infrastructure, research and development, funding public services like police, education, health.
specialists prefer to keep Joe Schmoe in the dark.
specialists didn't see christmas coming
- specialists didn't see LTCM failing.
specialists didn't see sub prime coming
specialists didn't see Lehmans exploding
Is a Brazilian or Argentinian govt bond as risk free as a US bond? If so, why have those countries defaulted on a string of IMF and US private loans over the last 15 years?
Do you agree with the economist Hyman Minsky calling Russian GKO govt bond issuance policy prior to the ruble crisis a Ponzi Scheme?
Can you also explain that if government bonds are risk free, why their yield varies? Doesn't that variation itself indicate varying sentiment amongst those who hold or wish to hold bonds?
What about the currency risk of govt bonds?
What about the inflation risk of govt bonds?
How does a central bank limit the risk of bond issuance? - It prints more money, thereby diluting the currency....or it raises more taxes, thereby taking from the taxpayer in the future (the point you seem to be disputng with me)
What is meant by 'a flight of capital' out of the USA?
Can you explain the term "moral hazard" in relation to central banks intervening in bank bailouts?
I think you owe me more than a 20 second cut and paste.
And you owed me more than a flippant putdown (about knowing nothing about economics) after I originally put forward views backed by a whole school.
But don't bother, because ultimately it highlights that if you knew anything about economics (which we both know you don't), then you'd realise that the of the couple of dozen or so different economic schools of thought they agree on what they agree on and disagree on what they disagree on. No amount of talking will ever resolve that.
Then what's your modus operandi in deriding me when I offer an opinion based on one school? Why didn't you have the self control to offer another's, rather then derisively undermining me?
You think the sky is falling.
I have never implied such an absolutist statement. I am attempting to rationally gauge what might unfold and how to best manage my own risk exposure in the face of that. Any contributions I make here are to stimulate debate from others who are motivated to go away and read. You come along and want to brow beat people into silence, even if their ideas are soundly supported by a whole school of economics.
I just think you need to change your undies.
What have I said to make you think that? I have already said the market will overshoot to the downside, and I'll put money into the market when I think oil has bottomed. I also said I think oil will be up by Christmas.
My statements about the markets have been basically not to catch falling knives, because a lot of forumites are expressing the sentiment that now is a good buying opportunity.
I've also given reasonable grounds on why the USA might be facing a depression or protracted recession, which is a view that was lampooined by the people like you last year, but is being discussed more seriously by analysts and economists worldwide....people smarter than you and I.
We agree to disagree and that ends that (and ends my contribution to this thread).