Instead of being able to trade stocks, go about normal business, and pushing for actual growth. The Economies of the world have started to come out of the hole. Why is that you may ask? It is because both Chinas Central Bank and the ECB have promised to, or in Chinas case already has, print more money to 'STIMULATE' the markets. Don't be surprised as this has been happening at an alarming rate ever since 2008.
Now, often over looked is the fact that ever since the Stimulus Act was signed into law, which handed over nearly $1 Trillion to Wall Street for their mistakes and misdeeds, is that the Stimulus kept on coming in the form of QE. Quantitative Easing for those unfamiliar. The rounds of QE sent in BILLIONS upon BILLIONS of dollars into the economy for years. The ECB also did this, as did Chinas central bank.
What does this all mean? It means that the worlds economies were being propped up by false wealth. It did not come from record sales, new business, job growth, or any actual growth that could change this around. It came from the fact that the Central Banks printed money and bought stocks, bonds, and whatever else because the fragile economies simply couldn't. It added loads of new cash into banks for loaning, and for buying assets. The idea was to encourage lending at the core of it.
In the end though, this is the buying of assets to increase wealth. Who gets to increase their wealth is the question. Where does that wealth go? Let's just say the so-called Too Big to Fail types have become much bigger. The Fed itself which had around $1 Trillion in assets, and now it has $4 Trillion in assets at it's disposal. Meaning the 12 banks involved whom make up the Federal Reserve all have a combined $4 Trillion in assets due to this measure. In simple terms that means they quadrupled their wealth during the crisis.
I don't know about you guys, but I don't like the sound of that. I especially don't like the fact that more Stimulus is coming, because it is now very obvious who is benefitting most from that Stimulus. It is now increasingly clear that the World Economy is on a crutch it just can't seem to get off of. Asia and Europe have both committed to more Stimulus and it's very likely that we will also down the road with them. Think of it as wound on a living body that simply can't heal and can only be treated in order to keep the entire body from dying. That's an analogy that is unfortunately very accurate when comparing to the World economy and its need for Stimulus money.
So when you hear that the economy is good and everything is grand, ask whomever tells you that one question. Ask them, "Why then can it not move along with out money being forced out to prop it up?" That should be an interesting answer to hear.
Now, often over looked is the fact that ever since the Stimulus Act was signed into law, which handed over nearly $1 Trillion to Wall Street for their mistakes and misdeeds, is that the Stimulus kept on coming in the form of QE. Quantitative Easing for those unfamiliar. The rounds of QE sent in BILLIONS upon BILLIONS of dollars into the economy for years. The ECB also did this, as did Chinas central bank.
What does this all mean? It means that the worlds economies were being propped up by false wealth. It did not come from record sales, new business, job growth, or any actual growth that could change this around. It came from the fact that the Central Banks printed money and bought stocks, bonds, and whatever else because the fragile economies simply couldn't. It added loads of new cash into banks for loaning, and for buying assets. The idea was to encourage lending at the core of it.
In the end though, this is the buying of assets to increase wealth. Who gets to increase their wealth is the question. Where does that wealth go? Let's just say the so-called Too Big to Fail types have become much bigger. The Fed itself which had around $1 Trillion in assets, and now it has $4 Trillion in assets at it's disposal. Meaning the 12 banks involved whom make up the Federal Reserve all have a combined $4 Trillion in assets due to this measure. In simple terms that means they quadrupled their wealth during the crisis.
I don't know about you guys, but I don't like the sound of that. I especially don't like the fact that more Stimulus is coming, because it is now very obvious who is benefitting most from that Stimulus. It is now increasingly clear that the World Economy is on a crutch it just can't seem to get off of. Asia and Europe have both committed to more Stimulus and it's very likely that we will also down the road with them. Think of it as wound on a living body that simply can't heal and can only be treated in order to keep the entire body from dying. That's an analogy that is unfortunately very accurate when comparing to the World economy and its need for Stimulus money.
So when you hear that the economy is good and everything is grand, ask whomever tells you that one question. Ask them, "Why then can it not move along with out money being forced out to prop it up?" That should be an interesting answer to hear.
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