Lessons From The Financial World

[AdvancingTime]

Central Banks have been expanding the money supply and had their foot to the floor yet economies across the world are not even close to escape velocity. Lessons from the "Financial World" are being doled out rather rapidly these days and it is best to pay close attention.

A very strong case can be make that a slew of new tools added the the central banks' tool boxes have masked and distorted the economic landscape. This can be seen in the explosion of derivatives, more debt leveraging, and in the growing carry trade. It is a fact that unproven tools can produce damaging results when not prudently applied still efforts to "extend and pretend" seem almost unlimited.

Many people thought Modern Monetary Theory (MMT) was to be our salvation and a tool to even out economic cycles but instead it has morphed into a massive dept machine. While those in charge appear undaunted by what is occurring the fact is by a series of off-book and backdoor transactions they have transferred losses from the banks onto the shoulders of the people. The article below explores the many lessons to be learned from this experiment.

http://brucewilds.blogspot.com/2015/08/lessons-from-financial-world.html

 

[EdwardBaiamonte]

Central Banks have been expanding the money supply and had their foot to the floor yet economies across the world are not even close to escape velocity. Lessons from the "Financial World" are being doled out rather rapidly these days and it is best to pay close attention.

A very strong case can be make that a slew of new tools added the the central banks' tool boxes have masked and distorted the economic landscape. This can be seen in the explosion of derivatives, more debt leveraging, and in the growing carry trade. It is a fact that unproven tools can produce damaging results when not prudently applied still efforts to "extend and pretend" seem almost unlimited.

Many people thought Modern Monetary Theory (MMT) was to be our salvation and a tool to even out economic cycles but instead it has morphed into a massive dept machine. While those in charge appear undaunted by what is occurring the fact is by a series of off-book and backdoor transactions they have transferred losses from the banks onto the shoulders of the people. The article below explores the many lessons to be learned from this experiment.

http://brucewilds.blogspot.com/2015/08/lessons-from-financial-world.html

100% stupid of course. Our central bank just stopped a world wide depression cold in its tracks. This is the golden age of central banking. China has just managed 30 years of 8% growth with no serious recessions, let alone a depression thanks in part to a steady performance from its central bank.

IF you disagree say exactly why without the BS.

 

[Jomama]

[ Our central bank just stopped a world wide depression cold in its tracks. This is the golden age of central banking. China has just managed 30 years of 8% growth with no serious recessions, let alone a depression thanks in part to a steady performance from its central bank.

Oh shit, I agree with Edward.

 

[oldfart]

[ Our central bank just stopped a world wide depression cold in its tracks. This is the golden age of central banking. China has just managed 30 years of 8% growth with no serious recessions, let alone a depression thanks in part to a steady performance from its central bank.

Oh shit, I agree with Edward.

Ed's slipping. Sometimes he forgets to put on that well-honed persona of doctrinaire idiot and makes an insightful cogent post.

 

[EdwardBaiamonte]

[ Our central bank just stopped a world wide depression cold in its tracks. This is the golden age of central banking. China has just managed 30 years of 8% growth with no serious recessions, let alone a depression thanks in part to a steady performance from its central bank.

Oh shit, I agree with Edward.

Ed's slipping. Sometimes he forgets to put on that well-honed persona of doctrinaire idiot and makes an insightful cogent post.

China has just managed 30 years of 8% growth with no serious recessions, let alone a depression thanks in part to a steady and massive intervention from its central bank. This behavior of course was learned from America where central banking has a history and a historian, Milton Friedman. Nevertheless, we cant be too smug given that our central bank had no idea that the massive housing bubble existed, let alone that it was about to burst with huge and unimagined ramifications..