Global Central Banks have been on a liquidity-pumping ‘binge’ over the past six. The the big dogs of central banking have led the way. The U.S. Federal Reserve, the Bank of Japan (BOJ), the People’s Bank of China (PBOC), the Bank of England (BOE), and the European Central Bank (ECB) have engaged in QE and other interest rate mutation policies.
Everyone knows that a harsh ‘reset’ lies somewhere ahead, where fiat currencies dramatically weaken in value versus hard assets. That ‘reset’ will likely be triggered by some major geo-political event .
In the meantime, things are happening to set the stage: “The Global Monetary Reset is Under Way.”
Excerpts from ZeroHedge (12/21/2014): Via Zero Hedge comments from AI Tinfoil,
The Global Monetary Reset is under way, but people have not noticed it yet. The key is the move to zero interest rates.
Government debt almost everywhere is too high to ever pay off, let alone pay a traditional rate of interest on. As debts come due, including as bond issues mature, the only option governments have is to roll over the debt and accumulated interest, and the only way they can afford to do that is if money printing is a continued practice and interest rates are at or near zero. QE is the latest name for money-printing, inflating the amount of currency available.
Logically, QE dilutes the value of a currency by inflating the number of currency units in circulation, and, theoretically, should lead to price inflation. However, if all nations engage in monetary expansion, the effects of money printing on exchange rates may be effectively concealed by a balance of expansion.
Or, as in the case of the US dollar, a currency with the status of world reserve currency may be expanded with relative impunity by the nation creating that currency, effectively exporting its inflation to the rest of the world that continues to sell to that nation, or trades in a monetary system based on that currency. Injections of QE into an economy with weak fundamentals is likely to result in speculative bubbles as QE funds show up in investors’ hands and not in the hands of general consumers.
….. Inflation is a key strategy in coping with immense and increasing debts. Debt so large that it cannot be paid must be inflated away or governments must default. Deflation makes current debt increasingly difficult to pay or service out of deflating GDP and tax revenue.
Again, note this statement, “Debt so large that it cannot be paid must be inflated away or governments must default. Deflation makes current debt increasingly difficult to pay or service out of deflating GDP and tax revenue.”
Not one of our leaders in Washington has a legitimate, comprehensive plan to deal with this looming crisis.
Also note this statement, ”Injections of QE into an economy with weak fundamentals is likely to result in speculative bubbles as QE funds show up in investors’ hands and not in the hands of general consumers.”
The Federal Reserve and U.S. Government have pumped massive rounds of liquidity out through the fire hoses to bail out big banks and various other financial entities, to rescue them when vicious subprime default waves slammed into their leveraged speculation strategies.
Massive Feb pumping also lit up Wall Street for the past four years.
Fed policies have profited banking industry ‘fat cats’ and Wall Street’s ‘high rolling speculators’ and so-called ‘financial innovators,’ but have done little to relieve debt and restore financial health for “general consumers.”
It is time for fundamental change. It’s time now to light up Main Street America.
The Leviticus 25 Plan 2015 – $70,000 per U.S. citizen The Leviticus 25 Plan 2015 (742)