Quote:
Originally Posted by KC911
....and you wear draggin' azz jeans too  !
.....my version is a ten year bull run...you can call it...a bs run. Fed quit juicing years ago, have been consistently raising rates on the path they stated/started back in '15, and are slowing unloading the stimili they purchased...
the market will correct (as always)....and the Fed won't do crap...unless....oh crap  . |
The EU Central bank is still juicing through December/18. 35B a month.
BOJ backed off their QE policy in 12/17....soon followed by US equities correcting in January. They too have joined the tightening bandwagon.
The Chinese on the other hand are using the stealthy "quasi" QE method of reducing capital reserve requirements of banks (which are state owned entities). With reduced reserves, they have more to lend in order to juice.
While one Central Bank curtails a QE program another steps their QE up. Why the choreography? Simple, each one in turn needs to QE or curtail in order to maintain a monetary and fiscal equilibrium. It is one he11 of a ho down dance party.
My thinking is that without QE of one sort or another, which includes sovereign debt creation the global economy soon finds it self in dire straits.
Debt in of itself is only the eventual instrument of your destruction. It is not in of itself the causation . Think of it as playing Russian Roulette where after each time you pull the trigger of adding new debt you add another bullet into the cylinder of the revolver..sooner or later the odds catch up to you.
The question becomes why do you need debt creation to support spending on both a private and sovereign level? I can wait...
To give you a bit of help...Liberals believe that their social programs which cost boo koo bucks btw help disadvantaged people get by and live with a modicum of dignity. I think that is a neutral statement. The core issue here is that you are helping through subsidization disadvantaged people have a
higher standard of living than what would otherwise be affordable for them. The key issue in this is the HIGHER STANDARD OF LIVING which everyone aspires to at least maintain. The truth of the matter is that every single American from Gates and Buffet down is living beyond their means (On a collective or societal basis).
If the global economy did not have to resort to juicing through deficit spending or monetary juicing (remember it started in 68 for the USA) Gates would not have been able to develop Microsoft to the level it has reached nor would Buffet have had the ability to make as much money as he has by investing. It in the end is the perceptional mindset of your modern life style that is fking you and is going to cause a bad end. It is the syndrome of the Lemmings.
You will not be dissuaded from this mindset until the fat lady bites you on the azz while she is singing. Then you will have no choice but to face stark reality in the face. It is called a reversion to the mean of human existence.
Now it is after 5 PM where I am at, so I am gona get jucied up and have a bourbon on the rocks for some end of summer libation.