Mass Currency Debasement Is Not A Solution
Mass Currency Debasement Is Not A Solution
As the Federal Reserve's gigantic debt bubble implodes all around us, we are witnessing massive wave after massive wave of currency debasement. Literally printing billions and billions of dollars on a daily basis in an effort to keep their debt bubble alive. The Federal Reserve has gone so far as to suggest there will be limitless currency debasement as a means of "providing stimulus", or put another way endless money printing to keep certain mismanaged corporations from going under.
The Federal Reserve has also suggested that these massive money printing actions will only temporary in nature. They want the public to believe these monetary debasements can and will be stopped and things can and will be normalized once this financial crisis comes to an end.
Not sure which turnip truck the Fed assumes we fell off of, but it doesn't take much to realize that it is not possible to unwind a quantitative easing scheme (see: Ponzi scheme). After all we just witnessed the complete failure of the Federal Reserve's attempt to unwind its previous debt bubble balance sheet expansion and thus its failure to normalize the monetary system through its quantitative tightening program.
It was former Fed chairman Ben Bernanke who said at the time they weren't monetizing debt back in 2008, like some 3rd world banana republic. Of course we can now see that this was either a bold face lie to the American public, or a massive failure to understand market economics by the Federal Reserve. Keep in mind, the Fed said it would be a simple operation to unwind their debt bubble scheme. It was to be on auto-pilot and would be as boring as watching paint dry, but in reality it brought the markets limping back into emergency mode long before anyone heard of COVID-19. You can not unwind a Ponzi scheme.
The Fed started QE4 (Not QE) back in August of 2019 when they scrambled to inject billions of dollars into a failing repo market, months before any signs of the deadly corona virus appeared in Wuhan, China. This emergency action, which was said to be a very temporary action at the time, kept on expanding and growing week after week and month after month as we moved into 2020.
In March of 2020, just a couple weeks after the virus started to impact the U.S economy, the Federal Reserve began its actions to replace the whole free market system with a massive debt monetization scheme. And today EVERYONE on Wall Street is cheering it on. Not because it makes good economic sense to prevent the economy from adjusting to reality, but because almost everyone on Wall Street got caught with their pants down in the largest debt bubble collapse in history. The Fed needed to protect the giant banks that profited greatly from the creation of this debt bubble from certain collapse....
<insert sad violin music here> The poor giant banks needed to be saved again.
Its the biggest players who got caught gambling again with the help of the Fed and now the Fed is rushing to the "rescue" again by printing massive sums of money to save them, as if this action has no consequence.
Nothing says good times like a central bank withdrawing the forces of the free market economics in an attempt to reinflate a massive debt bubble, by printing up TRILLIONS and TRILLIONS of new dollars. Certain people need to be protected according to the Fed. The last thing we need to do is let the free market correct imbalances in the economy. Instead artificial good times need to be stimulated and the empty punch bowl needs to be replaced in order to keep the smiles on the faces of the super elite who stand to lose massive sums of money if the Fed didn't backstop them. In reality this whole thing has turned into a titanic mess. This is NO LONGER capitalism.
This is central planned economics, pure and simple. Competition within the free markets has been cancelled. The balance between supply and demand has been called off. The Fed is literally handing out TRILLIONS to their closest friends. JP Morgan, Wells Fargo, Citibank, Bank of America are having their bad debts bailed out. What could be more fair than that?
I would expect this kind of behavior from an economic back water, but we are talking about the United States of America. Turning its back on free market economics by debasing currency and monetizing debt is the grand solution of the Federal Reserve. It is obvious they are beyond desperate at this point and looking for any way to re-inflate their grand debt bubble.
The Federal Reserve's mission to override what would be normal market signals and self correction has brought us a world of market distortion, which has resulted in such things as oil futures contracts reaching unimaginable record lows of -$40 a barrel and surging stock markets during an economic meltdown.
This grand debt bubble now stands as the Federal Reserve's legacy. I mean what else is there. If and when it implodes, it will bring the whole Federal Reserve system into question. I get it. This is their desperate hour. They need to maintain some semblance of credibility if they are to provide a free ticket to certain players moving forward. The problem is debasing the fiat currency system is not a solution which will protect the well being of the nation. Not even close. This is an outright recipe for economic disaster.
We are talking about a 1930's type of disaster, where it will shake the US economy to its core and wipe out massive amounts of real wealth. A nation may not recover completely from such a currency debasement, but unfortunately this is not what is driving the conversation these days. It is much more fashionable to ignore the massive debt bubble the Fed has developed over the past decade and just focus on the pin that popped their bubble economy. The house of cards is collapsing and all the Fed can do is try to convince us their mess is a magnificent success.
As the Federal Reserve's gigantic debt bubble implodes all around us, we are witnessing massive wave after massive wave of currency debasement. Literally printing billions and billions of dollars on a daily basis in an effort to keep their debt bubble alive. The Federal Reserve has gone so far as to suggest there will be limitless currency debasement as a means of "providing stimulus", or put another way endless money printing to keep certain mismanaged corporations from going under.
The Federal Reserve has also suggested that these massive money printing actions will only temporary in nature. They want the public to believe these monetary debasements can and will be stopped and things can and will be normalized once this financial crisis comes to an end.
Not sure which turnip truck the Fed assumes we fell off of, but it doesn't take much to realize that it is not possible to unwind a quantitative easing scheme (see: Ponzi scheme). After all we just witnessed the complete failure of the Federal Reserve's attempt to unwind its previous debt bubble balance sheet expansion and thus its failure to normalize the monetary system through its quantitative tightening program.
It was former Fed chairman Ben Bernanke who said at the time they weren't monetizing debt back in 2008, like some 3rd world banana republic. Of course we can now see that this was either a bold face lie to the American public, or a massive failure to understand market economics by the Federal Reserve. Keep in mind, the Fed said it would be a simple operation to unwind their debt bubble scheme. It was to be on auto-pilot and would be as boring as watching paint dry, but in reality it brought the markets limping back into emergency mode long before anyone heard of COVID-19. You can not unwind a Ponzi scheme.
The Fed started QE4 (Not QE) back in August of 2019 when they scrambled to inject billions of dollars into a failing repo market, months before any signs of the deadly corona virus appeared in Wuhan, China. This emergency action, which was said to be a very temporary action at the time, kept on expanding and growing week after week and month after month as we moved into 2020.
In March of 2020, just a couple weeks after the virus started to impact the U.S economy, the Federal Reserve began its actions to replace the whole free market system with a massive debt monetization scheme. And today EVERYONE on Wall Street is cheering it on. Not because it makes good economic sense to prevent the economy from adjusting to reality, but because almost everyone on Wall Street got caught with their pants down in the largest debt bubble collapse in history. The Fed needed to protect the giant banks that profited greatly from the creation of this debt bubble from certain collapse....
<insert sad violin music here> The poor giant banks needed to be saved again.
Its the biggest players who got caught gambling again with the help of the Fed and now the Fed is rushing to the "rescue" again by printing massive sums of money to save them, as if this action has no consequence.
Nothing says good times like a central bank withdrawing the forces of the free market economics in an attempt to reinflate a massive debt bubble, by printing up TRILLIONS and TRILLIONS of new dollars. Certain people need to be protected according to the Fed. The last thing we need to do is let the free market correct imbalances in the economy. Instead artificial good times need to be stimulated and the empty punch bowl needs to be replaced in order to keep the smiles on the faces of the super elite who stand to lose massive sums of money if the Fed didn't backstop them. In reality this whole thing has turned into a titanic mess. This is NO LONGER capitalism.
This is central planned economics, pure and simple. Competition within the free markets has been cancelled. The balance between supply and demand has been called off. The Fed is literally handing out TRILLIONS to their closest friends. JP Morgan, Wells Fargo, Citibank, Bank of America are having their bad debts bailed out. What could be more fair than that?
I would expect this kind of behavior from an economic back water, but we are talking about the United States of America. Turning its back on free market economics by debasing currency and monetizing debt is the grand solution of the Federal Reserve. It is obvious they are beyond desperate at this point and looking for any way to re-inflate their grand debt bubble.
The Federal Reserve's mission to override what would be normal market signals and self correction has brought us a world of market distortion, which has resulted in such things as oil futures contracts reaching unimaginable record lows of -$40 a barrel and surging stock markets during an economic meltdown.
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| Source: CNBC |
This grand debt bubble now stands as the Federal Reserve's legacy. I mean what else is there. If and when it implodes, it will bring the whole Federal Reserve system into question. I get it. This is their desperate hour. They need to maintain some semblance of credibility if they are to provide a free ticket to certain players moving forward. The problem is debasing the fiat currency system is not a solution which will protect the well being of the nation. Not even close. This is an outright recipe for economic disaster.
We are talking about a 1930's type of disaster, where it will shake the US economy to its core and wipe out massive amounts of real wealth. A nation may not recover completely from such a currency debasement, but unfortunately this is not what is driving the conversation these days. It is much more fashionable to ignore the massive debt bubble the Fed has developed over the past decade and just focus on the pin that popped their bubble economy. The house of cards is collapsing and all the Fed can do is try to convince us their mess is a magnificent success.
