There was once a day that I would have been carried along by the Green Party.
No longer.
There is a collective insanity running right through the mainstream.
I fully concur with the sentiments expressed by Travellerev.
Russell Norman Channels His Inner Mugabe
The Left Wing Bloggosphere Goes Agog and Reason Leaves the Building. So what is QE and Why Is It Destroying The Global Economy?
No longer.
There is a collective insanity running right through the mainstream.
I fully concur with the sentiments expressed by Travellerev.
Russell Norman Channels His Inner Mugabe
The Left Wing Bloggosphere Goes Agog and Reason Leaves the Building. So what is QE and Why Is It Destroying The Global Economy?
8
October, 2012
There
are days I despair more than others and coming from me that says a
lot as some of my readers may know.
Yesterday
Russell Norman, a man who should not be anywhere near politics as his
rampant ignorance on matters finance proves to me (mind you I could
easily say the same for most politicians both left and right),
announced that we should have a “Round of Quantitative Easing” to
help rebuild Chch.
He
argued that creating credit to buy bonds would devalue the dollar,
reduce overseas borrowing, fund Christchurch rebuild and re-stock
Natural Disaster Fund.
So
in order for my readers to understand why my despair level rose a
multitude of rampant, here are the next words for your banksters
dictionary:
Quantitative
Easing (QE)= The
central bank buys bonds or financial instruments to make money the
central bank printed out of thin air available to the banks who sell
these instruments. The theory behind this is that banks will lend
this money to real world people who need it to run their businesses
creating demand for their products hiring people and thus stimulating
the economy.
Here is nice video from Investopedia about QE
Here is nice video from Investopedia about QE
Russel
Norman argued that QE will not lead to inflation and therefore not
raise prices which would debilitate those of us with a fixed income
or stagnating wages.
Well..
it could be argued that Russell Norman is right… because not a
lot of the money transferred to the banks needing liquidity ended up
on mainstream where money is desperately needed to help businesses
starved of funds to continue their trading thus masking the real
world effects of QE.
For
example at the moment more then a 100
million people
are without work in the US alone. That is about 30% of it’s entire
population. The amount of people on food stamps is about 12 times the
entire New Zealand population which would equate to 1.3 million
people in New Zealand.
But
while the masses got poorer, lost their homes (there are 5
empty homes for
every homeless person in the US) and jobs (which have
been outsourced even
more in the last three years then ever before) and are living rough
or on the verge off, inflation reared it’s ugly head in some strata
of society: It
appeared in the world of the 1% of the most wealthy people on the
globe.
You
see, the money that went to the banks wasn’t used to help the real
world economy, it was used to continue the trade that started the
financial instability in the first place: the derivatives trade.
And
with the derivatives trade was what paid the banksters huge bonuses
and that allowed them to spend ever more outrageous sums on houses,
paintings, cars, yachts and other luxury items. Here is
Michael Sniders take on QE and what it will do to the global economy.
What
is causing prices for food and fuel to rise is not so much direct
inflation but the speculation of the same people getting the bonuses
for trades in Derivatives, in future harvests and fuel production.
So
with that in mind I hope that you will understand why James
Henderson,
guest writer for the Standard when he tries partake in the great
global finance debate showing his utter ignorance spiked my despair
several notches and if that was not enough here are some more
reasons.
In
promoting QE, Russell Norman shows that he has no concept of the
historical background of QE, the international banking system, Fiat
money, the Reserve system and the inevitability of the collapse of
the entire financial system because the concept is unsustainable.
What
is even more worrying is that websites such as the
Standard and Tumeke,
in their jubilation about the Greens coming out ahead of Labour with
this incredibly ignorant policy, show once again that they too have
absolutely no concept of what is about to hit us in the very near
future and that no amount of QE will stop the inevitable global
meltdown of the entire fraudulent fiat currency based system.
For
those of you who feel lacking in the Financial knowledge department
and who want to get up to speed with what is coming, here is Chris
Martenson’s Crash
course and
here is Money
as debt explaining
how money is created and why the system is unsustainable.
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