Big news out of the gate today is that the central banks of the world are about to do more. More what, you ask? More of what central banks do best, of course…more money printing!
They don’t call it that, obviously. They call it “swapping” or “easing” or “recapitalizing” or “saving us from the abyss.” Or they call it “bolstering financial markets,” as The New York Times breathlessly explains…
“The Federal Reserve, the Bank of England, the European Central Bank, the Bank of Japan, the Bank of Canada and the Swiss National Bank all moved to bolster financial markets by increasing the availability of dollars outside the United States.”
And some forgotten voice, somewhere up in the peanut gallery groans, “We’re all Keynesians now.”
But never mind all that. The markets are up. The Dow stacked on 400 points before lunch. There’s no time to think, Fellow Reckoner. No time to wonder on the whys and whatfors. The money is coming! There’s celebrating to do! Hooray!
If only we’d worked this out years ago. Can you imagine? Whenever there was a crisis, we’d just add more liquidity to the system and hey, presto…problem solved!
Unless, that is, the problem has to do with solvency and not liquidity. Broke individuals usually don’t benefit much from extended lines of credit. Not in the long run. They are broke because they have a tendency to overindulge, to consume more than they produce. They need to kick their nasty habit…not reinvigorate it. They need to pay their debts, not put them off, accruing interest in the process.
To switch metaphors for a second, the last thing a man in a hole needs is a shovel. But here are the feds…ready to beat him over the head with it and fill his grave in over the top.
Joel Bowmanfor The Daily Reckoning
Joel Bowman is a contributor to The Daily Reckoning. After completing his degree in media communications and journalism in his home country of Australia, Joel moved to Baltimore to join the Agora Financial team. His keen interest in travel and macroeconomics first took him to New York where he regularly reported from Wall Street, and he now writes from and lives all over the world.
This is great, the Bank of Canada is going bail out the Eurotrash [again] meanwhile the Europeon [that is not a spelling mistake] parliment is working on ways to ban oil from Canada.
I think it is time we gave Europe to Germany.
That is funny. A good laugh. Broke banks bailing out other broke banks with electronic credit still called money and the idiots in the market go wild. I guess the only thing that is going to save us is another world war. So what is going on with all those Chinese tunnels being built?
Yeah Dave definitely, Germany could fix it.
But who do we give the USA to? Canada?
“The money is coming! There’s celebrating to do! Hooray!”
sounds great, don’t it? but recall, the dollar is debt currency. money is debt.
“The debt is coming! There’s celebrating to do! Hooray!”
doesn’t have the same ring to it ….
unless of course you’re a banker issuing the debt ….
Boy,the people on this whole page get it! Thank u DR 4 all your Wisdom that u have bestowed upon us! Yeah give the EU 2 Germany they always wanted it anyway. Now they can have it with out firing a shot! And the gr8est Empire since the Roman1! Well u know who owns them? All i can say is teach your children Mandarin! *S* PS look @ the Euro,Slv Gld & Oil and the $. Well 4 out of 5 ain’t bad! Its good 2b a Trader in ridiculousness. Ain’t it???
Yes I think Greenspan has a lot to answer with very low interest rates for the last 10 years.
The world can’t have China with its low currency.
The World can’t have the USA keep printing money and devaluing the US dollar to make US exports cheaper.
The World can’t have Europe keep stuffing around.
Pingback: urlman cow
Pingback: read here
Pingback: payday loan direct lenders only no credit check
Pingback: You Can Try Here
Pingback: web directory submit link
Pingback: worpress themes
Pingback: have a peek at these guys
Pingback: quikrete concrete stain
Pingback: Ð¾Ð½Ð»Ð°Ð¹Ð½ ÐºÐ°Ð·Ð¸Ð½Ð¾
Pingback: highest paying affiliate programs
Pingback: PMP Certification)
Pingback: minion rush hack
Pingback: resume centre reviews
Pingback: antivirus gratuit
Pingback: lunatik discount code
Pingback: vick strizheus
Pingback: iherb coupon
Pingback: iherb promo code
Pingback: jesus wallpapers
Pingback: ganar músculo con creatina
Pingback: carry on luggage
Pingback: Technothriller books
Pingback: resources here
Pingback: check out the post right here
Pingback: payday loans west sacramento
Pingback: Devin Thrill
After the 2008 financial crisis, little could be heard over the deafening cries of "mission accomplished." And while the Fed's massive QE program seemed to work, the question remains: for how long? Addison Wiggin explains why the next round of QE will fail miserably, paving the way for the IMF to step in with something called "special drawing rights." Read on...
Despite what you hear in the mainstream news, the commercial market for small drones could eventually dwarf the military one. In fact, it’s already happening. This is a big market, and it's getting bigger by the day. Today, Wayne Mulligan explains how to get in on the ground floor. Read on...
While a traditional "buy and hold" investment strategy can be a good way to make money in the long run, it's by no means the only way. For those investors who dismiss technical trading as a "witchcraft" and impossible to figure out, Greg Guenthner has just two charts to show you that could completely alter how you feel about trading stock market trends. Read on...
American citizens aren’t the only ones fleeing the country because they don’t like the direction it’s headed. Corporations expatriate for similar reasons. So why are companies desperate enough about corporate tax to leave the U.S., the champion of freedom and enterprise? Clem Chambers explains here...
Milton Friedman is roundly regarded as one of the great economists of the 20th century. But his view of the Bretton Woods system was all wrong. And the current mess of floating exchange rates proves that. Today, Lewis Lehrman explains how the current monetary system pits every country against each other in a financial "race to the bottom"...