“Soon” And “Really, Really Crazy”: Starting Up The Helicopters – DollarCollapse.com
QE and negative interest rates didn’t work, so governments are gearing up for…more of the same. This will also fail, setting the stage for an epic crisis.
So many thoughts, so little time:
Japan has an “economic revitalization minister”? That seems like an admission of defeat right there, since the name implies an economy that (under current leadership) isn’t vital. But hey, at least it’s honest, unlike the US where the numbers are cooked to show vitality where there is none.
“The budgets will likely benefit workers at nurseries and day care services for the elderly, said [Japan’s] Ishihara. ‘The aim of the economic measures is to make investments for the future’.” Really, daycare for the elderly is an investment? This illustrates the debasement not just of currency but of language, when anything a politician thinks will buy votes can, with a straight face, be called an investment.
That picture of Bernanke doesn’t convey any new information but it’s such a great example of parody revealing underlying truth that it deserves to be reprinted every few months.
The idea (now being pushed by a surprising number of people who ought to know better) that governments should take advantage of historically low interest rates to “invest” with borrowed money has an obvious fatal flaw. That is, accumulating even more negative or zero-rate debt will make it functionally impossible to raise rates to “normal” levels, which is to say levels where markets can once again function as mechanisms for moving savings into productive investments. It’s not a stretch to call this the end of capitalism and the beginning of a new Dark Age.
The coming experiments are of course not the end of the process. A full-on debt jubilee is still out there, and will be tried after a simple ramp-up of fiscal/monetary stimulus fails again. Be prepared for governments to start buying our houses at double the market price in 2017.