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Fiscal and Monetary Madness Global Currencies Madness: When central banks and politicians “manage” global currencies, we can expect:
It has happened before and it will happen again… Last Century Madness:
Current Monetary Madness: Japan has created a national debt that exceeds 1,000 Trillion yen, about 250% of their GDP. According to the IMF, Japan’s debt is “unsustainable.” The US national debt (official only) currently exceeds $19 Trillion, up from $398 Billion in 1971, $5.6 Trillion in 2000, and $10.1 Trillion in October 2008. National debt has increased at a compounded (exponential) annual rate of about 9% per year since 1971. Does anyone expect the debt will be repaid, reduced, or even stabilized? I think it is clear that the debt will be rolled over and increased until it must be inflated away or defaulted. This is political and central bank supported monetary madness. Exponential increases inevitably end badly. (The U.S. version of monetary madness.) (The Argentina version of monetary madness.) Central Bank Monetary Madness: Exponential debt increases appear normal in a central bank controlled financial world that benefits the political and financial elite at the expense of the middle and lower classes. QE, ZIRP, and NIRP (negative interest rates) are recent examples of central bank responses to their self-created problems of debt based fiat currencies, exponential increases in debt, and uncontrolled deficit spending by governments. Fiscal and monetary madness prevails! Ambrose Evans-Pritchard on the DANGERS of negative interest rates: “Huw Van Seenis, from Morgan Stanley, calls negative rates (NIRP) a “dangerous experiment” that undermines the mechanism of quantitative easing rather than enforcing it…” “Narayana Kocherlakota, ex-head of the Minneapolis federal Reserve, reluctantly backs NIRP as deep as -3% but calls it a “gigantic fiscal policy failure” that central banks must resort to such absurdities.” “Morgan Stanley said that once negative rates fall below 0.2%, the damage to bank earnings goes “exponential” and ultimately endangers the whole system of free banking in Europe that we take for granted.” My comment: The financial world is descending into an abyss of monetary madness as indicated by:
CONCLUSIONS:
We have been warned! Gary Christenson The Deviant Investor My Amazon Books
Gary Christenson is the owner and writer for the popular and contrarian investment site Deviant Investor and the author of the book, “Gold Value and Gold Prices 1971 – 2021.” He is a retired accountant and business manager with 30 years of experience studying markets, investing, and trading. He writes about investing, gold, silver, the economy, and central banking. His articles are published on Deviant Investor as well as other popular sites such as 321gold.com, peakprosperity.com, goldseek.com, dollarcollapse.com, brotherjohnf.com, and many others. Many years ago he did graduate work in physics (all but dissertation), so he strongly believes in analysis, objective facts, and rational decisions based on hard data. Contact me: deviantinvestor at gmail.com Like my blog? You might enjoy my books:New Fiction: “Who Killed Doctor Silver Cartwheel?“Non-Fiction: “Gold Value and Gold Prices 1971 – 2021“Available at Amazon in Paperback and Kindle and Available at www.gechristenson.com
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