In The News Today

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Bill Holter’s Commentary

Erik has been saying this since 2000 because he was correct then and even more correct today as absolutely nothing has been done to fix the debt problem. 2008 was bad enough as they threw more debt at a debt problem as the fix. Will throwing 10’s of $ trillions of newly created debt money…fix debt? Nevermind the shaky creditworthiness of borrowers, the collateral has now evaporated and nothing can be done to reflate it. Sir Richard the Good named it “inflate or die”.

Erik, You Been Saying This Stuff Since 2000. (On Economics)_001

Erik, You Been Saying This Stuff Since 2000. (On Economics)_002

Bill Holter’s Commentary

And just like that we have “QE infinity”. Central banks will now monetize and buy everything. Their currencies will now make the final journey to zero … When all is said and done, currencies will drop faster than assets “go up”. It is called hyperinflation. If they can keep markets open, what will look like a spectacular rise on a chart in reality will be vast losses of purchasing power.

The Federal Reserve Just Pledged Asset Purchases With No Limit To Support Markets
March 23, 2020

The Federal Reserve said Monday it will launch a barrage of programs aimed at helping markets function more efficiently amid the coronavirus crisis.

Among the initiatives is a commitment to continue its asset purchasing program “in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”

That represents a potentially new chapter in the Fed’s “money printing” as it commits to keep expanding its balance sheet as necessary, rather than a commitment to a set amount.

The Fed also will be moving for the first time into corporate bonds, purchasing the investment-grade securities in primary and secondary markets and through exchange-traded funds. The move comes in a space that has seen considerable turmoil since the crisis has intensified and market liquidity has been sapped.