Pandemic Bills Are So Big That Only Money-Printing Can Pay Them | Forex Factory

Pandemic Bills Are So Big That Only Money-Printing Can Pay Them | Forex Factory

Pandemic Bills Are So Big That Only Money-Printing Can Pay Them

From bnnbloomberg.ca

Forced into record spending by the threat of another Great Depression, policy makers are blurring the lines between borrowing the money they need and simply creating it. Most modern economies have tried to keep the two activities as separate as possible. The typical setup has been for elected politicians to take charge of budgets, and meet any shortfall by borrowing on bond markets –- while the money-printing machinery was walled off in another branch of government, the central bank.But those barriers began to look porous after the financial crisis of 2008. And in the coronavirus slump, they’ve all but ... (full story)

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May 15, 2020 6:57am

There is another alternative - something so radical and bold that no one who dare propose it:

Reset EVERYTHING in all financial systems. At the stroke of midnight on July ..... Everyone's accounts would be wiped clean and everyone who have 10,000 dollars, euros, yuan, etc., and then take it from there.

2

May 15, 2020 4:27pm

let me translate for you guys:"Pandemic Bills Are So Big That Only Money-Printing Can Pay Them"

Pandemic Bills Are So Big That Only retired + youth + savers Can Pay Them

I could never imagine this kind of low life robbery can happen in humane society.

1

May 15, 2020 10:21am

Quoting Steamroller

Disliked

The reset idea is probably the worst one I have ever seen. I would certainly riot and pillage if that ever happened. Soft monetary debasement is the best option.

Ignored

I didn't say it was a good idea, but it certainly an idea worth discussing isn't it?

Wealth distribution once and for all.

The problem with what we have now is this (Speaking for USA ONLY)....any and all business losses (real & imaginary i.e., future sales) will be the responsible for the US Government - THEY ordered business owners to close - hence business losses/expenses should be the responsibility of the US Government.

The US Government is printing dollars as fast as the machines can churn. The ONLY people who will benefit from this is the upper 20% and huge corporations. Small owners (less than 20 employees) will be shafted. Workers will see jobs disappear due to lack of demand, unemployment skyrocket, more printing....

When will it end?

Determine what a companies bank sheet looks like and for mega-international corporations NOTHING - write EVERYTHING OFF.

The reason this doesn't get traction is because if the masses learned about the possible re-setting of their debts they would riot to make it happen.

Personally I think it should be discussed. Frankly I am one who believes that if all the money in the world were re-distributed equally that within 5 years you would find similar ratio's of who has the money and who doesn't. The percentages would be similar but I believe that some of the legacy families wouldn't be able to make it back.

Yes, it's me, the conservative advocating a discussion about relief of world debt. Unprecedented times indeed!

May 15, 2020 10:23am

Quoting RossEdwards

Disliked

{quote} so all you are advising is to buy a commodity asset to hedge against a inflationary currency collapse? (Of which there is no evidence) Why not buy vintage Ferraris? Or Gold? Or Impressionist paintings? Or PorkBelly Futures?)

Ignored

Ross, I agree with you again with this caveat. The allure of the crypto's is that unlike the Ferrari, gold, paintings, plywood, etc., the theory is that you can't create more crypto so you won't have a situation where the FED is printing overtime.

Theory and reality often clash.

May 16, 2020 8:59am

Quoting Guest

Disliked

Yes I think bitcoin is the only way out. I’ve been trying to buy gold now for weeks but none available in Australia! Only paper gold... unless you can buy it by the kilogram. I’d rather hold my wealth in these times not trust the banksters with it.

Ignored

Ok buy your gold but it won't help you. How many stores accept gold as a form of payment?

How many businesses accept Bitcoin? (More and more are but it's still a minority).

The allure of Bitcoin is the limited availability - unlike fiat money - but will your local grocery store accept it; mine won't. Plus I REALLY don't want to have all my currency in my account increase/decrease by 3-5% overnight or at all. Bitcoin is an investment - just like tulips

Let's face it, if our currencies switched to bitcoin or the gold standard we are all fu@@3d.

Don't confuse investing with living

May 15, 2020 9:24am

Quoting sidhujag

Disliked

Or just buy crypto, thats why it exists because the current system was bound to collapse

Ignored

so all you are advising is to buy a commodity asset to hedge against a inflationary currency collapse?
(Of which there is no evidence) Why not buy vintage Ferraris? Or Gold? Or Impressionist paintings?
Or PorkBelly Futures?)

May 16, 2020 6:04pm

Quoting RossEdwards

Disliked

{quote} so all you are advising is to buy a commodity asset to hedge against a inflationary currency collapse? (Of which there is no evidence) Why not buy vintage Ferraris? Or Gold? Or Impressionist paintings? Or PorkBelly Futures?)

Ignored

Not financial advise I’m not allowed to give that. I’m saying it in derogatory form as it has proven a great hedge against tradition fiat money which has inflated ever since we can remember in our lifetimes. There is Mathematical certainty of ownership and deterministic supply characteristics which make it favourable form of value over centralized versions

May 16, 2020 6:06pm

Quoting fxsport

Disliked

{quote} Ok buy your gold but it won't help you. How many stores accept gold as a form of payment? How many businesses accept Bitcoin? (More and more are but it's still a minority). The allure of Bitcoin is the limited availability - unlike fiat money - but will your local grocery store accept it; mine won't. Plus I REALLY don't want to have all my currency in my account increase/decrease by 3-5% overnight or at all. Bitcoin is an investment - just like tulips Let's face it, if our currencies switched to bitcoin or the gold standard we are all fu@@3d....

Ignored

Yes bitcoin isn’t money it’s an asset. However that does not exclude crypto itself from money

May 15, 2020 12:03pm

Exactly. Money will have to be printed in order to finance the government deficits. Which means the de facto end of central bank independence. Which means the defacto end of the deflationary conditions and declining interest rates which which have dominated the past 40 years. That doesn't mean immediately hyper-inflation. The opposite of low inflation is not necessarily Zimbabwe-type inflation. But it DOES mean much higher inflation than the paultry rates we have been seeing for decades now in the Western world, and along with those low inflation rates, there also comes the end of the ultra-low long term interest rates which fuelled property and speculation bubbles

May 15, 2020 8:41am

Or just buy crypto, thats why it exists because the current system was bound to collapse

May 16, 2020 1:02am — Edited

Something

May 16, 2020 1:07am — Edited

I also wonder

May 20, 2020 9:50pm

The hell with bitcoin - buy cattle futures. People always gotta eat!

May 15, 2020 4:14pm

There is actually a great youtube video about policies of big banks and central goverments.
Also covers why crisises in capitalism happen and why it's actually a good thing for economy.
Idk. if i can put a link here so it's :
How The Economic Machine Works by Ray Dalio
(that's really worth watching in my opinion)

May 15, 2020 9:27am

The reset idea is probably the worst one I have ever seen. I would certainly riot and pillage if that ever happened. Soft monetary debasement is the best option.

Trader#99D7

May 15, 2020 11:16pm

Yes I think bitcoin is the only way out. I’ve been trying to buy gold now for weeks but none available in Australia! Only paper gold... unless you can buy it by the kilogram. I’d rather hold my wealth in these times not trust the banksters with it.

Trader#C5DE

May 19, 2020 7:01am

Quoting fxsport

Disliked

There is another alternative - something so radical and bold that no one who dare propose it: Reset EVERYTHING in all financial systems. At the stroke of midnight on July ..... Everyone's accounts would be wiped clean and everyone who have 10,000 dollars, euros, yuan, etc., and then take it from there.

Ignored

I actually like your thinking man. From a guy who doesn't quite understand how everything works in an economy I like you idea. I've always wondered looking at small business in my city 'how on earth do they survive, rent, hydro, payroll, stock. They must be bleeding money trying to sell a 2 dollar item, how many do they have to sell, etc'

Trader#863C

May 19, 2020 12:53pm

Good this will push up inflation which in turn could push up interest rates . Then people who save may just about get a half decent return on their savings instead of this obsession which encouraving debt.

Trader#C1E5

May 20, 2020 4:22pm

I get that there are a lot of crypto fanboys out here, but I gotta start with this. For investing is bitcoin possible, but plz DONT use it instead of a bank (unless you really really really know what ur doing (I advise 1m+ in assets and no big loans)) the problem with bitcoin is that just like most crypto's its value changes, a lot... just like somebody above mentioned, u dont want to wake up with 5% less "money". BTW, I guess most of you realise that "real life money" is just as worthless as bitcoin (or other crypto's). Yes fanboys u heard that right... Why? Cuz u cant eat it, u cant build a house out of paper or coins. But because we realised a looong time ago, trading with ur local products (that u produced, like bread or milk, u get the point) is not efficient.
But why do we even care about some paper and some metal coins? Cuz they get their worth from the central bank, why? Because they have the equivalent of the money made in gold....
Lets talk about gold, if u want to invest, sure go gamble a bit with crypto. But u must also consider gold. Why?? The nice thing about gold that its a much more stable. Gold is used in a LOT, jewelery+ elektronic devices etc. What is inside a computer chip? U guessed it, no ferrari's, no bitcoins, but gold. Gold is just as limited as bitcoins, and it is a physical thing that relies on other things then the fear of losing money and the extacy of maybe making money. Yes, it doesnt change as much as bitcoin so it is only good as long term investment.

Trader#C1E5

May 20, 2020 4:29pm

Quoting fxsport

Disliked

{quote} Ross, I agree with you again with this caveat. The allure of the crypto's is that unlike the Ferrari, gold, paintings, plywood, etc., the theory is that you can't create more crypto so you won't have a situation where the FED is printing overtime. Theory and reality often clash.

Ignored

Ehmm, im gonna have to tell u a secret.
Dont be surprised aight?
Since when can u "create" extra gold, classic paintings etc. ?
Last time I checked, the philophers stone only exists in Harry Potter and Da Vinci is dead since long ago...

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May 15, 2020 6:50am
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