Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
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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
#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.
Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
#3One 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. Modern extreme economic inequality is a function of monetary policy, not political policy.
Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
#4One 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…
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.
Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
#5One 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?
Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
#6> 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.
The Bank of Japan’s balance sheet is at 110 percent of GDP.
Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
#7One 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…
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?
Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
#8One 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.
Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
#9> 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, using the Exchange Stabilization Fund, will make an equity investment in each SPV and be in a “first loss” position. What does this mean? In essence, the Treasury, not the Fed, is buying all these securities and backstopping of loans; the Fed is acting as banker and providing financing. The Fed hired BlackRock Inc. to purchase these securities and handle the administration of the SPVs on behalf of the owner, the Treasury.
In other words, the federal government is nationalizing large swaths of the financial markets. The Fed is providing the money to do it. BlackRock will be doing the trades.
This scheme essentially merges the Fed and Treasury into one organization. So, meet your new Fed chairman, Donald J. Trump.” [2]
So what does this mean? The US is going to go to a gold backed currency. The federal debt is going to be wiped out. With no federal debt to pay interest on, personal income taxes are going away. The whole wealth transfer mechanism of the central bank system gets cut off.
Edit: Take note of the change Trump has made in recent weeks. Has he been tweeting out that the Fed needs to do this or that? No. Because he can just order them to do it now.
2nd Edit: Also, notice how the IRS dealine for filing and pay has been delayed, for the first time in history? Because Trump ordered it. The IRS isn't even pursuing collection actions on old taxes owed. The filing deadline is going to get moved again to the end of the year, mark my words.
1. https://www.cnbc.com/2019/07/02/trump-to-nominate-judy-shelt...
2. 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
#10And it's still not even remotely enough. 5-year inflation expectations running at 0.67%, CPI falling. The shock to aggregate demand is being allowed to exceed the supply shock. https://fred.stlouisfed.org/series/T5YIE