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  • Federal Reserve's $3 trillion virus rescue inflates market bubbles

    From reuters.com

    The Federal Reserve’s $3 trillion bid to stave off an economic crisis in the wake of the coronavirus outbreak is fuelling excesses across U.S. capital markets. The U.S. central bank has pledged unlimited financial asset purchases to sustain market liquidity, increasing its balance sheet from $4.2 trillion in February to $7 trillion today. While the vast majority of these purchases have been limited to U.S. Treasuries and mortgage-backed securities, the Fed’s pledge to bolster the corporate bond market has been enough to spur a frenzy among investors for bonds and stocks. “COVID-19 is now inversely related to ... (full story)

This madness will lead to new financial system.
Dollar crash and digital currency will make it happen.
Quoting SangamAgarwa
This madness will lead to new financial system. Dollar crash and digital currency will make it happen.
This madness? What is your alternative?
COVID-19 is a madness and it is a global threat to both financial and welfare systems. If your alternative is not surrender and die, then you have to fight it and keep the economy “alive”.
Full stop on money printing. Either gold standard or digital currency. Digital currency is better choice we can track where the money gone. But it will create nightmare for many people
Quoting SangamAgarwa
Full stop on money printing. Either gold standard or digital currency. Digital currency is better choice we can track where the money gone. But it will create nightmare for many people
Well. At least one doesn’t need to print digital currencies. Just edit the digit and you can at least save a lot of work and paper. The problem however remains the same. Any currency from has a value which needs to be backed somehow and if one needs more of it, then make more of it whether by printing or by editing numbers.
That’s why there is no easy way out of this. You have to fight or else you’ll die (hopefully not) 🙂
Digital currency backed by gold.
Quoting SangamAgarwa
Digital currency backed by gold.
Because that is so much safer than paper currency backed by gold?
The alternative would be fiscal stimulus in the form of fixing the poor infrastructure in USA. Now funds are just being printed in order to support the richest 10% who own most of the stocks and equity.
It's also good to support certain businesses who have suffered because of the pandemic. The current FED money printing is supporting many companies who would have failed under normal market conditions.

https://www.cnbc.com/2019/03/29/thou...ws-report.html
I don't think the Nasdaq will end well it's smashed all time record highs before the crash it's about 15% higher than it was when the market was over valued running at full capacity. Every time record Covid infection in the US numbers get released the Nasdaq rallies 200 pts. Smashing 11000 already. On a forward PE of 50 in a depression absolutely crazy what the Fed is doing.
It no longer makes sense to buy the dollar.
Quoting NotAtrader
{quote} This madness? What is your alternative? COVID-19 is a madness and it is a global threat to both financial and welfare systems. If your alternative is not surrender and die, then you have to fight it and keep the economy “alive”.
Yes, COVID-19 is a real threat, but you are clearly missing the bigger picture here. This has little to do with keeping the economy alive. It has more to do with making people poor and dependent on big government. Wake up!
Quoting SangamAgarwa
Digital currency backed by gold.
So is US dollar.
Quoting SangamAgarwa
Digital currency backed by gold.
Digital currency backed by the same thin air of the dollar. The difference is it will be easier to track and control.
Quoting NotAtrader
{quote} So is US dollar.
Correction: the dollar used to be backed by gold. Now it is backed by lies.
Quoting here2there
{quote} Yes, COVID-19 is a real threat, but you are clearly missing the bigger picture here. This has little to do with keeping the economy alive. It has more to do with making people poor and dependent on big government. Wake up!
Usually I wake up about 6 to 8 hours earlier than you do.
Anyways, fighting the situation by keeping the economy and the welfare running means making people poor and depended?

What have you been smoking?
Quoting NotAtrader
{quote} Usually I wake up about 6 to 8 hours earlier than you do. Anyways, fighting the situation by keeping the economy and the welfare running means making people poor and depended? What have you been smoking?
I haven't been smoking anything. Your problem is you lack discernment.
Quoting SangamAgarwa
Digital currency backed by gold.
Dude.... there is not enough gold in the world to have a gold standard. You peg it at a rate and years later you need to adjust that rate because you keep adding 000 to digital currencies or printing more regular currency.
They will keep adjusting the peg rate to gold continuously.... so why have it in the first place? You are not even thinking about what will happen to gold as a commodity that's needed for manufacturing.
Money should go to investments, not to Apple, Google, Amazon etc.
https://wolfstreet.com/2020/07/11/wi...een-for-years/
Quoting JustBreathe
{quote} ...you keep adding 000 to digital currencies...
That could happen. But it all depends on which digital currency we are talking about. It's not set up like that now. Take Bitcoin, for example, there are only 21 million (one of the reasons why it is so valuable). There will never be more than that. It was intentionally created with a limited supply to avoid what we see happening with the dollar.
Quoting here2there
{quote} Correction: the dollar used to be backed by gold. Now it is backed by lies.
You are totally clueless. Look around and see what happens around the world. USA is not the world. It is just one of many victims of he virus and it fights it just the same way like Europe, Canada and Australia does. There is no one with a magic wand who can solve the puzzle with a single move.

The main reason why the damage in USA became more severe recently is how your president handles the situation. He is everywhere telling that 90% of the infected people are are actually not sick and there is reason why people should wear masks and test themselves. Even my nephew understands that 90% of the infected may not be sick, but they bare and spread the virus! He just doesn’t care how many will die as long as he gets re-elected.
Unfortunately for him and for you, he will not be re-elected.
Quoting here2there
{quote} That could happen. But it all depends on which digital currency we are talking about. It's not set up like that now. Take Bitcoin, for example, there are only 21 million (one of the reasons why it is so valuable). There will never be more than that. It was intentionally created with a limited supply to avoid what we see happening with the dollar.
Bitcoin cant be a countries currecny, with a limited supply and price instability it just doesn't work.
Even when there were gold coins, new gold coins were minted to be used in the market. A country cannot have stable prices of goods and services with a fixed supply of currency. Yes there is inflation and some things go up in price faster than other but in general its quite stable. Bananas are not 0.50 one day and 2$ next day or week.
Creation of new money is essential to economy growth. If 10 people have a 1$ each you can only have a 10$ economy regardless if they produce more goods and bring them to market.
The more they will produce(bananas lol) the cheaper in currency their goods will be worth due to fixed supply of money. It doesnt make sense.

In the long term the banana will be cost 0.0000000001 since max economy is 10$ and you have millions of bananas. Who ever had the most money to start will not spend any because they know it will be worth a lot more in the future - deflation - no economy growth. Its the mirror image of printing money but at least spending money grows the economy. There is an incentive to spend/invest $ because it looses value idling under a pillow.
Quoting JustBreathe
{quote} Dude.... there is not enough gold in the world to have a gold standard. You peg it at a rate and years later you need to adjust that rate because you keep adding 000 to digital currencies or printing more regular currency. They will keep adjusting the peg rate to gold continuously.... so why have it in the first place? You are not even thinking about what will happen to gold as a commodity that's needed for manufacturing. https://cdn-resources.faireconomy.me....png?v=1.0.0.3https://cdn-resources.faireconomy.me....png?v=1.0.0.3https://cdn-resources.faireconomy.me....png?v=1.0.0.3
That was actually a spot on. The fact that there’s not enough gold on earth to create a gold standard and that through the years people create more and more values explains why we need to currencies as an exchange mechanism that could be manipulated and adjusted. Alternatively the price of the gold must raise endlessly which will accelerate the difference between richness and poverty. Yes there will always be rich and poor people, but the truth is the rich people will always need strong and healthy people who can work for them and be contented with the life they have, otherwise there will be endless war between the rich and the poor. Nobody wants that.
Quoting NotAtrader
{quote} You are totally clueless...
Does it make you feel more powerful to say that?
Quoting here2there
{quote} Does it make you feel more powerful to say that?
It is not my opinion. It is a fact highlighted by yourself.
Quoting NotAtrader
{quote} It is not my opinion. It is a fact highlighted by yourself.
No, it is not a fact that I am totally clueless. And it is your opinion.

I used to have respect for you. Not anymore. You sound like you speak more from your emotions than common sense.
Quoting here2there
{quote} No, it is not a fact that I am totally clueless. And it is your opinion. I used to have respect for you. Not anymore. You sound like you speak more from your emotions than common sense.
My heart is broken

Nevertheless no hard feelings. Just trade and make money if you can. This kind of discussions are obviously not your strong side.
Quoting NotAtrader
{quote} ...This kind of discussions are obviously not your strong side.
You are the one using ad hominem and saying stupid stuff you can't possibly prove. Maybe you should consider staying out of conversations like this.
Quoting NotAtrader
{quote} My heart is broken Nevertheless no hard feelings. Just trade and make money if you can. This kind of discussions are obviously not your strong side.
You are way too emotional. You even removed me as a buddy when I challenged your narrow-minded way of thinking about Trump.

Very immature.
Quoting here2there
{quote} You are way too emotional. You even removed me as a buddy when I challenged your narrow-minded way of thinking about Trump. Very immature.
Me emotional and immature? Is your memory too short? If I remember correctly, you asked me to misuse my maturity in this forum to protect you and to suspend a fellow member because you couldn’t stand him talking against you. I could never think of asking someone to do such thing for me. Not even my father. Thanks God I didn’t suspend him. I can never do that.

It looks to me that you cannot stand anybody arguing with you. Who is immature now?
Quoting NotAtrader
{quote} Me emotional and immature? Is your memory too short? If I remember correctly, you asked me to misuse my maturity in this forum to protect you and to suspend a fellow member because you couldn’t stand him talking against you. I could never think of asking someone to do such thing for me. Not even my father. Thanks God I didn’t suspend him...
There you go again! Not being thoughtful but giving a knee-jerk reaction. You know there was more to that than what you are making it out to be. And it is evident you can't be trusted when it comes to showing respect for a person's privacy.
Quoting NotAtrader
{quote} ... It looks to me that you cannot stand anybody arguing with you...
No, I just don't like it when people say stupid stuff.
Quoting here2there
{quote} There you go again! Not being thoughtful but giving a knee-jerk reaction. You know there was more to that than what you are making it out to be. And it is evident you can't be trusted when it comes to showing respect for a person's privacy.
Whether you can trust me or not is up to you. The truth is you cannot handle the situations around yourself while you calling me and other people immature.
How matured of you?!

Anyways this topic is not yours nor is mine. If you need to argue and fight everyone who disagree with you, then create your own topic and invite everyone who can possibly be your imaginary enemy and fight with them all day and night. Shame there isn’t a children section in this forum. That would be your place.
Quoting NotAtrader
{quote} Whether you can trust me or not is up to you. The truth is you cannot handle the situations around yourself while you calling me and other people immature. How matured of you?! Anyways this topic is not yours nor is mine. If you need to argue and fight everyone who disagree with you, then create your own topic and invite everyone who can possibly be your imaginary enemy and fight with them all day and night. Shame there isn’t a children section in this forum. That would be your place.
You lack self-control and clearly have a hard time owning up to what you do wrong to others.

Now I will add you to my ignore list.
Quoting here2there
{quote} You lack self-control and clearly have a hard time owning up to what you do wrong to others. Now I will add you to my ignore list.
How sad for you! You cannot ask me for help and will not have access to my knowledge then! I hope you find the way all by yourself. Good luck to you.
BtW my wife is psychologist and I know everything about that 🙂
I don't think FF should allow this, only two people who're fighting each other; and in the end both loose. Fighting is just a waste of time, lives and resources, all the wars through the ages have proofed this.
It is the other way around, actually. The virus anihilates fake money created by the banking system. Like interests rates money on deposits and any kind of banking credits (personal/corporate/government/whatever). These are the real buble money. The "crisis" is killing that legally printed bubble money (by the banking system itself).
These 6t and now the 3t are just replacing the destroyed fake money, people were actually counting on...
  • Post #36
  • Quote
  • Edited at 2:14pm Jul 14, 2020 1:20pm | Edited at 2:14pm
Quoting Bakker
I don't think FF should allow this, only two people who're fighting each other; and in the end both loose. Fighting is just a waste of time, lives and resources, all the wars through the ages have proofed this.
Just look at his profile. What would you expect from a person who has traders like “KeenPips” and “Davit” on his ignore list?
The last two mentioned are living examples of professional traders and nice behaving people on a public forum.

“here2there” has put some of the best traders on his ignore. He is just cutting himself off.
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  • Posted: Jul 13, 2020 7:47am
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 36  /  Views: 8,279
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