X marks the spot

BullionVault

16 May, 2016

Quantitative Easing

You already know what this is. A con.

Quantitative easing temporarily saved the banking sector. The masses paid / pay for it.

The situation is similar to Greece. 95% of the currency units, created electronically from nowhere, did not go to the Greek people but the repayment stream is taken from the Greek people. The currency units went to a few big banks, to temporarily stop them from visibly collapsing.

What a joke these currency units have become. They are conjured from thin air by organisations we believe are wealthy, banks and central banks. That really makes no sense. Basically, if we allow our neighbour to counterfeit currency and then we all pretend it is real, do the currency units become real? Well, yes. Is our neighbour actually wealthy? No, he is unbelievably wealthy. Does that type of system work? Well, yes but not forever. (The Federal Reserve is the counterfeiting neighbour on a global scale.)

In the UK, the Bank of England simply synchronises the ever increasing expansion of currency units. Any one bank loaning into existence too many currency units must borrow from other banks, each evening, to balance the books.

The ever increasing currency unit expansion is now faltering, due to demographics / boomers retiring. Now, the Bank of England has just used QE to swamp the system in liquidity such that banks no longer need to borrow, overnight, from each other.

The other problem that Central Banks face is boomers starting to liquidate assets to fund their retirement. There are simply not enough buyers, so many Central Banks are buying stocks, bonds and shares to stop these markets from collapsing.

It won't work forever but it buys time. How it ends is a guess. It depends on the people. The masses decide how this ends. Either through panic and violence or through a reasoned understanding of the problems.

This really does matter, at this point your quality of life starts collapsing far quicker or it starts to improve beyond all recognition. The people of Detroit have already lost. The Greeks have lost. Spain is losing. The U.S. is struggling. The UK is reasonably OK so far. Things could be so much better if the masses understood the world they live in.

Hence the blog.

Don't bother reading this until you have read all 30 learning to critically think posts. This is advanced stuff. You don't need to know it, you need to learn how to appreciate and understand it.

Once you have read all 30 posts, you can than start on the numbered posts. Accountability 101 and work through all those on your own time and at your own pace. Then you will be ready for these "title only" posts.

Unless, of course, you are already an established critical thinker. The number counter at the bottom of the blog will indicate how many page views this blog has had. Until it hits 14 million, there are not enough critical thinkers to avoid mass panics, millions of deaths and probably some exchange of nuclear weaponry. I am aware of about a dozen (global) critical thinkers on the planet. We need 14 million.

Anyway, what can you do? The last best hope for mankind are all on Facebook arguing over who should be president. WHAT A BIZARRE QUESTION.