Articles NewsFlow Gold & Silver Prices Market Briefing

Recevez notre Marketbriefing

In the same category

Stephenabailey@yahoo.com
Member since January 2015
1 commentaries -

0 followers

has posted a comment on the article :

Helicopter Money - Steve Saville - Speculative Investor

Unfortunately, the author is wrong in multiple ways. QE is not the monetization of debt. Our monetary system is debt-backed. The debt was monetized when the credit was extended. QE is the re-monetization of debt. It does not inflate credit or debt. Therefore,not is non-inflationary (technical definition).

Helicopter Money, as proposed by Bernanke to Kuroda and Abe, is a fundamental change to the monetary system. It involves the creation of non-marketable perpetual "bonds" with low, zero or negative yields. They are non-marketable because no sane person would buy them. Only a central bank that can take your savings by force can commit such an idiocy (again, with your savings). Why is it a fundamental change to the monetary system? It eliminates the only thing backing the money -- debt. A bond that will never be repaid and yields nothing is not a bond, a debt nor an asset. Should this scheme work in generating the holy grail of 2% annual price increases, it will be replicated around the world, Euro-land next. Once politicians see that they can get free money, it won't be a one-time event. It is the first step of the final stage of monetary and economic collapse.

Helicopter money is not the same as QE and QE is not monetization of debt. The debt was already monetized and backs the currency in your wallet and bank accounts. Helicopter money will be successful in devaluing the currency because it is removing whatever value there is backing the currency. It means certain economic death.

Commented 2815 days ago

Send

Beginning of the headline :Here is an excerpt from a recent TSI commentary about another absurd course of action now being seriously considered by the monetary maestros. Once upon a time, the concept of “helicopter money” was something of a joke. It was part of a parable written by Milton Friedman to make a point about how a community would react to a sudden, one-off increase in the money supply. Now, however, “helicopter money” has become a serious policy consideration. So, what exactly is it, how would it affect the eco... Read More

Reply to this comment

You must be logged in to comment an article

8000 characters max.

	RSS feed		24hGold Mobile
	Gold Data Center		Gold & Silver Converter
	Gold coins on eBay		Silver coins on eBay
	Technical Analysis		Fundamental Analysis