Bass: There are going to be consequences to central bank balance sheet expansion all over the world. Look at currency cross rates. If all central banks are expanding at the same rate, the cross rates aren’t moving, but your purchasing power, in terms of goods and services in the country where you live, is diminishing. You’re not focused on real returns, you’re preoccupied with the cross rates…..
Bass On inflation: When you look at what’s going on from an inflation perspective, central banks have printed about $10 trillion dollars since the beginning of the crisis. The first $4-5 trillion went into re-equitizing heavily leveraged structures and bringing down rates. The second $4-5 trillion is making its way into the monetary base, and even though the multiplier is not working, at some point this is going to ignite and set cost pressures off. Again, it won’t be demand-pull, which is technically a good kind of inflation. Rather, it would result from too much money in the system.
Bass On QE’s effects on wealth inequality: It will show up in food in the early stages. Global QE is filtering its way into asset prices. Those closest to the proverbial spigot are enjoying the printing the most with most in the middle and lower class not feeling the love at all. All you have to do is look at the gap between median income and mean income growing ever wider. This means the rich are getting richer while the rest stay stagnant or even decline.
Bass: The point is that no one will make those difficult decisions unless they’re forced to make them. The politics of all these situations tell me how this is going to play out, and that’s through massive central bank balance sheet expansion and capital controls.
The Fed recently wrote a paper that actually endorsed capital controls if done concurrently with other nations. It’s hard for me to fathom that capital controls can ever be a great idea, but this is what you’re going to see.”
America needs a bold new approach.
The Leviticus 25 Plan is the only legitimate comprehensive economic recovery in America today.
This economic revitalization plan features direct liquidity extensions to U.S. citizens, massive debt reduction at the family level, allocation of capital by the people – rather than by government “central-planning” mechanisms.
The Leviticus 25 Plan would restore economic liberty, reduce the scope of government, re-ignite real economic growth, generate real tax revenue growth (federal, state, local), and make a real difference in peoples’ lives.
The Leviticus 25 Plan is the only plan in America that would deliver meaningful real-time benefits to American families – and pay for itself over a 10-15 year period.
The Leviticus 25 Plan 2015 – $70,000 per U.S. citizen The Leviticus 25 Plan 2015 (871)