Strange that they pretend the Fed CAN raise rates if they want to.... but simply choose not to, as doing so would cause a "taper tantrum".
Would be more honest to note that, rather, if rates do rise... the implication is that nations will be forced to default on their debts... or turn on the printing presses to pay debts with inflated currencies... and the impact will not be a "tantrum" but economic Armageddon... the failure of all fiat currencies, or hyperinflation... the failure of markets, or an acceleration into a deeper deflationary depression... than the one that we're already in...
The Repo crisis... still being ignored... ?
The QE problem... at the core of the problems... still being ignored... in terms of QE being the opposite of what they tell you it is... ?
So, at some point... change has to occur...
We know the change can't be "rates rising"... or the wheels come off.
Either QE gets "walked back"... causing a "taper tantrum"... which is also "the wheels come off"... or SOMETHING ELSE has to be done about it... As it is "wealth transfer" as structured... the banks want to do nothing about it... as doing something would tend to reverse the flow of the wealth transferred to them. So, they're refusing to give it back... but doing nothing about it guarantees... the wheels coming off... later... while growing the risks over time of not acting.
The system, sick since 2008, is still refusing to take its medicine... wanting one that works less well at exorcising demons, and also tastes better... Odds are good that they'll hold out until dead. Which end will solve our problems, at least, if in the least positive way possible, as the patient is screaming, and threatening to take the entire medical staff, the entire hospital, the entire city, the whole world, down with him...
As QE was "fake" money printing... it will have to be unwound by being substituted for with REAL money printing... in a balanced withdrawal... that also has a necessary element of removing fraud from the system... which a correction would have enabled, if one were ever allowed ?
Alternatively, as the banks refuse to return the QE... refusing to swap it for unrestrained assets that would require them to work to succeed, rather than get "wealth transfer" for no reason... it will simply have to be converted into not QE... by having the restrictions on its utility eliminated... Doing that, and thus converting the entire reservoir of all the QE generated... into real money printing all at once... forcing it to become liquid by removing the restrictions that prevent its participation in the economy now... Removing restrictions which now force QE to suppress the velocity of money further over time, the more QE there is ? That would get ugly.
So, instead, as (real) rates go negative... banks are doing "reverse repo" to sustain the impact of QE as the rate dynamic inverts... One of the takeaways of Reverse Repo as crisis... is that it is a proof that real rates ARE negative... already.
The plan we have now, as implemented... generates and postures a massive hyper-inflationary risk in the lie that QE is "money printing" when it is not... while disallowing that risk being realized... in a way that imposes the opposite impact in reality... forcing us into constantly shrinking velocity of money... forcing us into and now accelerating us into a deflationary depression...
So, we get BOTH at the same time... a depression... and inflation... while awaiting their decisions on which of them will be unleashed first... to go hyper on us...
QE applies brakes on the economy... So, even if you print money... expecting that will be rocket fuel driving the economic engine... but you don't ever remove the brakes... then, you're still not going anywhere... but risk blowing up the engine with the rocket fuel...
Call it the Jumanji economy...
They're growing that tiny swirl in the drain of the bath tub... into a massive whirlpool of a vortex... big enough to suck in everything... But what its really doing... is linking the real economy... to the black hole in derivatives... that has continued growing since 2008.
The choices are... force banking to correct for the accumulated lies/frauds/derivatives black holes...
Or, let them destroy everything...
That's the right context... in which to consider "what the great reset has to accomplish"... in order for the banks to not simply evaporate... |
