Government and corrupt politicians ALWAYS debase a countries Money!


Is Quantitative Easing the Same as Printing Money?

Quantitative Easing

QUESTION: Mr. Armstrong;

Thank you for coming to Athens. After the presentation, there were so many questions that the moderator did not have time for. You answered some for the crowd afterwards that I had never heard anyone ever explain. You said Quantitative Easing was not money printing nor did it really increase the money supply. You also said to the crowd that fiat is not paper money, but anything declared by government including pegs.

Could you elaborate on those statements.

Thank you for your enlightenment.

GP

ANSWER: Quantitative easing is not responsible for increasing the money supply or printing money. It is a swap of bonds for cash so they are not outright printing money. It is a swap transaction. This combined with the idea that paper money is fiat and precious metals are tangible are all seriously wrong. Fiat is the attempt by government to decree the value of money. This is no different from a peg that broke, such as the Swiss/euro peg, or the Bretton Woods attempt to fix gold in terms of dollars. ANY attempt to flat line the value of money by decree is fiat, regardless of whether the instrument is paper or seashells.

This idea that Quantitative Easing is printing money is very pre-1971 thinking and is a throwback to Bretton Woods. Such an assumption focuses on the differentiation between debt and money or cash. Pre-1971, you could not borrow against government debt so there was a clear difference between debt and money. The theory that it was less inflationary to borrow than print made sense only when there was a real difference between debt and cash or money.

Today, debt and cash are the same. If you trade futures, you deposit cash and to earn some interest you buy TBills, which are deposited and used as collateral. The distinction between debt and cash has vanished. This means that Quantitative Easing does NOT actually stimulate the economy. The giant assumption was that the cash would be spent within the system. But the banks complained and the Fed created the EXCESS RESERVE window which has about $2.5 trillion on which the Fed pays 0.25% interest. They only swapped bonds for the right to deposit cash at 0.25%, so where was the stimulus? Nothing was stimulated and there was no inflation since there was no actual increase in private spending.

These theories are very primitive to say the least. Nobody looks at them closely or follows the money to see if they are doing anything what the theory pretends should happen. The ECB bought 25% of the bonds and inflation still turned negative. They have stated that they will increase that to 33%. They never review their actions when something fails to work. All government ever does is move further in the same direction because government employees will NEVER admit a mistake.

This is akin to physicians in medieval times who assumed that bleeding a person would heal them because an illness was seen as if it were a poison in the bloodstream. If the patient died, they never assumed the death to be the result of taking too much blood. Instead, they would state that they did not bleed the patient soon enough and that caused their death.

Welcome to the plague of thinking among humankind. Why learn new ways as long as you can just accelerate the current failed process? It’s safer because you do not have to admit mistakes that way. This is why we must crash and burn. They will never look at their actions and are incapable of admitting an era. Anyone who challenges the status quo becomes the “fringe” element that should be ignored.

The Tea Party faction fights for control of the Republican Party to stop out of control spending!


Republican Civil War – Country Club Republicans Threaten The Survival of the USA

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TIME-Trump-Deal With It 8-31-2015Our computer, which has been projecting the rise of a civil war within the Republican Party, has a lot of emails coming in right now on this subject. Rep. Kevin McCarthy’s startling decision to pull out of the race for speaker of the House of Representatives has illustrated quite openly how the Republican Party is becoming bitterly divided between hardcore conservatives and Country-Club Establishment. This is reflected also in the rise of Donald Trump who has even been leading the polls in Florida beating Bush in his home ground no less Rubio and Hillary. Trump is the anti-politician and this highlights the rising tension in politics.

President-3rdParty

The Republican civil war has been escalating with the beginning of the Tea Party six years ago. Our models have been pointing to 2016 would be the year from political hell and few people thought our computer would ever be right. Some in political circles commented that yes, our computer had been correct with all prior elections. But this was luck since it was based upon trends without polling individuals. What they do not grasp is people respond to the trend and get that correct and you will forecast which way they will vote.

Trump-Carson

Our political forecast was coordinated with the Economic Confidence Model and what we are seeing is part of the times driven by high taxes, declining economic growth, rising unemployment for the youth, and politicians who have become corrupt and disconnected from society. The non-establishment Country Club Republicans are rising to the top and the political establishment along with the press are fighting against this trend without accepting responsibility for their own actions. I would certainly never vote for any established politician for nothing will change regardless of who wins be it Hillary or Bush.

FOX News Political Debate

This Republican Civil War, which we have been warning about, has intensified this summer and fall as Washington outsiders are leading most Republican polls beating the establishment on every front no matter how much the “free press” try so hard to change the trend. The press refuse to publish their own polls where people no longer trust mainstream journalists and this political season has exposed them as trying to influence the elections rather than reporting on the trend.

Republicans may have control both chambers, but they struggle to get anything done as the divide between Country-Club Republicans led by John Boehner, R-Ohio, have openly tried to fund upsets to purge anybody in the Tea Party. Boehner removed anybody who supported Ron Paul and would not allow Ron Paul’s name to even be placed into nomination at the last Presidential convention. Boehner has done far more to divide the Republic Party and its destruction rests squarely on his shoulders.

McCarthy, the House majority leader, was the certainly the clear favorite to succeed Speaker Boehner in a normal world. However, the California congressman was hardly a consensus choice since he was part of the Country-Club establishment who would only help to further divide the party rather than heal it. McCarthy was the majority leader and would NEVER gain the support of the Tea Party members for he went along with Boehner in back-stabbing them every chance he got. The Country-Club Republicans are coming to an end. This is going to be a very interesting 2016. For now, the fear will rest on the prospect that the government will shut down and the kicking the can down the road is under fire.

Yes, it would be nice to restructure everything right now. It would be easy to save the nation in 30 days or less if we approached this from a practical perspective as if we were to save a bankrupt corporation. The first country to accept a restructuring will be like Britain in 1931 when it abandoned austerity (gold standard) and was the first to rise from the Great Depression. The Democrats are just thieves in the night hell bent on robbing anyone who has money to line their own pockets.

The answer is right there before our eyes. The problem that prevents saving the nation is too many politicians.

Donald Trump Campaign Rally Las Vegas (10/08/15)


$400,000,000.00 (Four Hundred Million) So Far – Who’s Buying Who…


Follow the money as it will always tell you what is going on and who has the power!

Putin Verses Obama 1, 2 and 3 your out!


Putin Veres Obama

Putin Veres Obama 2

 

Putin Veres Obama 3

The Calling!


Make America Great Again!

This is not Migration it is Invation


Slovakia Will Exit the EU Over the Immigration Issue

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The Slovak Prime Minister Robert Fico has stated bluntly that the EU must stop the influx migration of refugees or Slovakia will exit the EU. The refugee issue is tearing Europe apart. Latvia refused to accept the number allotted to them by Brussels.t is Invation

The debt goes up and up because we spend more than we take in so either spend less or tax more!


Central Banks Selling U.S. Treasuries As Fight Over Debt Looms

T-Bonds

Central banks have been dumping U.S. Treasury bonds because of the debt ceiling problem. The Tea Party will shut down funding if they have their way. This situation illustrates the entire problem. The debt ceiling only ever rises. We will see a rise in taxation and this will help to collapse the U.S. economy and thus the world. These people we call “representatives” only represent themselves and they have no solution to this Sovereign Debt Crisis. It certainly looks like we will be seeing that blast to new highs next year. So hold on tight, this may even hurt a bit.

Donald Trump Rally In Waterloo Iowa (10/07/15)


Matt Drudge and Alex Jones