The current behavior in the stock market is exactly what I
Mainstream economists are late to realize this. A year from now they’ll say “January or early February 2016 is when the recession started.” At that point, it won’t be useful information. But you can see around the corner if you’re looking at the right information.
There’s been no real wage
Deflationary forces are still strong, making the Fed’s goal of producing inflation even more urgent. Every quarter that goes by brings forward the day of reckoning for the global elites. They need inflation because that’s the only way out the sovereign debt problem.
Yet central banks
The question for the global elites is: Where will inflation come from?
A lot of people assume that all that’s required to produce inflation is just
Printing money is only half of what’s necessary to produce inflation. The other half is lending that new money…
It’s not happening because corporate and banking decision makers are still licking their wounds from the meltdown of 2008. Everyday people have been saving money and paying down their debt. That’s why we’re still going through a debt leveraging cycle. That’s also why quantitative easing has failed. The money hasn’t gone out into the real economy. It’s been tied up in the banking sector.
Any bank with excess reserves at the Federal Reserve could take them and use it as a base to lend money. But they’re not, so the whole scheme isn’t working. What’s called the “monetary transmission mechanism” is broken.
First, helicopter money amounts to direct government spending to stimulate the economy. The idea is to force spending
Who does that spending? The government.
This policy will take us back to the Great Depression and John Maynard Keynes. He argued that government spending could lift the economy out of depression. It’s Keynesism 101.
- Source, Jim Rickards via the Daily Reckoning