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Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

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Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#11

Post by zaroth »

logicslave wrote: post #3

One interesting fact I learned the other day: IBM did 140 billion in stock buy backs in the last decade. They have a 100 Billion dollar market cap. I think that is a bit of what we have going on right now. A system propped up by injected cash, which works for now because everyone plays along. Most of this injected money goes into the pockets of the rich, who are the ones holding the assets that the FED is bailing out…

I’m not sure what your last paragraph has to do with the first three.

A main purpose of buying a stock is to receive dividend payments. Buybacks are just a tax efficient dividend.

The latest craze to make paying dividends sound evil is just strange.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#12

Post by onlyrealcuzzo »

jonfw wrote: post #5
logicslave wrote: post #3

One interesting fact I learned the other day: IBM did 140 billion in stock buy backs in the last decade. They have a 100 Billion dollar market cap. I think that is a bit of what we have going on right now. A system propped up by injected cash, which works for now because everyone plays along. Most of this injected money goes into the pockets of the rich, who are the ones holding the assets that the FED is bailing out…

You're not giving the whole picture if you don't mention that IBM's market cap has seen very significant decline over that time period. IBM has been producing insane cash-flow over this period and their strategy was to pay out dividends/buybacks rather than to invest in new markets Is IBM even getting bailout money? What does IBM have to do with the bailouts?

Part of what allows a company to have insane cashflow is issuing corporate bonds at artificially low prices because the Treasury is manipulated by the Fed.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#13

Post by _curious_ »

chrisco255 wrote: post #8
logicslave wrote: post #3

One interesting fact I learned the other day: IBM did 140 billion in stock buy backs in the last decade. They have a 100 Billion dollar market cap. I think that is a bit of what we have going on right now. A system propped up by injected cash, which works for now because everyone plays along. Most of this injected money goes into the pockets of the rich, who are the ones holding the assets that the FED is bailing out…

Hard to disentangle monetary policy from political policy. They are strongly interlinked.

Sure but what does it matter if it's "monetary policy" or "political policy"? They work hand in glove and as @mywittyname aptly states above:

"...I feel like the wealthy in this country have developed the perfect scheme for leeching the wealth from this country."

The perfect scheme involves a bailout mechanisms without question. And too many Americans are falling for the scheme with hands out for a piece of welfare from the wealthy. They are selling out the future of their country in exchange for a pittance in the process.

The scheme doesn't stop, it only exacerbates as long as the bailouts continue...bailouts for wall street, bailouts for mains street, bailouts for every day individuals = all part the scheme by design.

I'm in constant awe of how many otherwise intelligent people can't grasp the role that these "bailouts" play in perpetuating the inequality gap. That, or they happen to be on a certain side of things and don't want to know what it's like to be on the other when the gravy-train stops flowing...

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#14

Post by zaroth »

Fjolsvith wrote: post #9
strict9 wrote: post #2

> 30.2% of US GDP How much further can they go? 26 million or so recent unemployment applications and the stock market is not off much from recent all time highs. This is more concerning than the initial falling knife mid-March.

Gotta tell you guys that the Fed is going to get restructured. Basically its going to declare bankruptcy and stiff the central banks to whom it is indebted. Trump is looking to nominate Judy Shelton to the Federal Reserve as she is the one who will do the restructuring. [1] How is he able to do this? “The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, usin…

Your Bloomberg link is 404, but here is a copy of the editorial;

https://finance.yahoo.com/news/feds-cure-risks-being-worse-1...

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#15

Post by Loughla »

LordFast wrote: post #7
mywittyname wrote: post #4

Earlier quoted context omitted.

A stock buyback is theoretically the same as a dividend, in that it should reduce market cap by roughly the amount of the buyback. I do agree with your sentiment though. I feel like the wealthy in this country have developed the perfect scheme for leeching the wealth from this country. We will only know how bad it was after the postmortem, at which point, we will be (figuratively) dead.

Is it too jaded to say that it most likely has always been, for all time? And that we are simply more aware of it these days?

I think it's more subtle now, though, and harder to be aware of.

Back in the day, robber-barons simply exploited the working class through substandard working conditions, and outright theft of money or property [citation needed].

Now, though, you need a deep understanding of global monetary policy, tax law, and labor laws to be able to connect the dots.

So I would argue that now is different from earlier times in history, because those who are exploiting the system have finally figured out how to a) hide it well enough, and b) co-op members of the classes being exploited to fight for those doing the exploiting through misdirection and propaganda.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#16

Post by bawana »

And there will be NO inflation because this money is largely going to corporations who will figure out ways to maximize ROI -> invest it in the financial market. So although there might inflation of equity prices (as seen by the recovery of the S&P and other equities), the world is still out of work and starving and without the dollars to drive demand and price increases of goods and services.

We need to separate financial money flows (Gross Financial Product?) from the GDP to really know what is going on.

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#17

Post by bequanna »

onlyrealcuzzo wrote: post #12
jonfw wrote: post #5

Earlier quoted context omitted.

You're not giving the whole picture if you don't mention that IBM's market cap has seen very significant decline over that time period. IBM has been producing insane cash-flow over this period and their strategy was to pay out dividends/buybacks rather than to invest in new markets Is IBM even getting bailout money? What does IBM have to do with the bailouts?

Part of what allows a company to have insane cashflow is issuing corporate bonds at artificially low prices because the Treasury is manipulated by the Fed.

Not sure I follow. What does the US Treasury have to do with private debt issuances? Did you mean that interest rates are manipulated by the Fed?

Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record

#19

Post by [deleted] »

Fjolsvith wrote: post #9
strict9 wrote: post #2

> 30.2% of US GDP How much further can they go? 26 million or so recent unemployment applications and the stock market is not off much from recent all time highs. This is more concerning than the initial falling knife mid-March.

Gotta tell you guys that the Fed is going to get restructured. Basically its going to declare bankruptcy and stiff the central banks to whom it is indebted. Trump is looking to nominate Judy Shelton to the Federal Reserve as she is the one who will do the restructuring. [1] How is he able to do this? “The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, usin…

[deleted]
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