Posted on 02/28/2016 8:35:01 PM PST by TigerLikesRooster
Central Banks Have Signed Their Death Warrants
During the past year U.S. consumption spending for health care rose by 5%. Spending at restaurants and bars were up by 9%, while spending for gasoline and other energy products was down by 22%.
This was Mr. Market at work--millions of households reallocating their spending in response to relative price changes. It had nothing to do with a macroeconomic abstraction called "weak demand".
Actually, the medical care component of the CPI rose 3.3% last year. Housing and shelter were up by 3.2%, while gasoline prices were down by 7.3%. It all added up to a 1.34% annual change in the overall CPI index by the sheer coincidence of BLS's arbitrary weightings of the index components.
Again, it had nothing to do with the pace of total consumption expenditures or any other measurement of "aggregate demand."
/snip
Ultimately, the central bankers will go for the real thing--NIRP for real people who are trying to save a nest egg. To be sure, a pipe-smoking economist will say there's no appreciable difference between positive 30 basis points and negative 30 basis points on a CD.
But there is. And the great political inflection point will come when policy elites try to pull that stunt on real people. NIRP will be the flashing neon lights announcing that the government is confiscating the people's savings and wealth.
When they actually try to impose NIRP on their own people and not just the commercial banks, the central banks will be signing their political death warrants. That day can come none too soon.
(Excerpt) Read more at dailyreckoning.com ...
P!
He’s quite right......
Which financial time bomb do you think his Wednesday seminar will touch on?
Japan went negative and the biggest selling item is safes. People are pulling money out of the banks.
This is why they want to do away with cash. Money will just be a number in computer memory, at a bank.
Precious metals will go back up.
"In an open $80 trillion global economy and era of Peak Debt, central bank interest rate repression and massive QE injections function almost entirely in the financial markets, not the real economy. Their primary impact is to falsify financial asset prices and risk/reward ratios throughout the entire financial industry."what he really means is that all the money that they're printing is just propping up the stock market.
You can't eat it(gold.)
Just buy silver. You be glad you did ~!
Are the central banks becoming as obsolete as the RNC/GOPe and the DEMe?s
And next on the list...the reduction (elimination of large denomination bills) or abolution of cash. Force people to spend or pay to save! Lose cash money and say goodbye to liberty!
Why The Keynesian Market Wreckers Are Now Coming For Even Your Ben Franklins
I don’t buy much silver or gold, but I have a fair amount of copper led antimony and brass
I don’t buy much silver or gold, but I have a fair amount of copper led antimony and brass
Yes. They want to force people to consume, to take on more debt. We have a debt fueled economy. NIRP won’t work—at least not to any great extent—unless they control cash. Eliminate cash and force everyone into digital accounts, and one could go deeply into NIRP territory.
The $100 bill stands in the way. With it, people can still control significant amounts of $ outside the banking system. Try carrying $10K in $20 bills versus $100 for example. If the $100 is eliminated, they can transition smoothly to a cashless society. Smaller bills would still be available (temporarily) for small purchases. Big, private transactions would be eliminated.
Some will say this will stop a lot of crime. Perhaps, but it will also make us slaves. It brings to mind a certain prophecy where people will be unable to buy or sell without the mark of the beast. Yeah. That’s where I think we’re going.
The great thing about the cashless economy is when the politicians spend all the money you, as a taxpayer allow them, they simply take the money out of your electronic bank account. It's not a 'bail out'. It's a 'bail in', and it's very patriotic.
Why would anyone have a problem with that?
Or powder, lead and brass?
Some will say this will stop a lot of crime.
It wil just move the point or crime from the street to the halls of legislators
Some one will write up a bartering App. A cross between the speed dating apps and snapchat.
You have a case of beans and I have 2 bottles of brandy. Meet by the 7-11.
No records, no taxes.
This could be a new digital barter economy, a kind of insurgent financial system. This would take care of many small retail-level transactions of everyday necessities. Since many people are struggling economically these days, this may become necessary for their survival.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.