Global Central Banks ‘juiced’ up their respective monetary policy machines during the past seven years, pumping out trillions of dollars in liquidity – specifically targeting the very banks and insurers whose subprime debt gambles and forays into the unregulated derivatives market ended with balance sheet blowouts.
And here we are – with global economies sinking ever deeper into a cavernous debt sinkhole.
Hoisington – Quarterly Review and Outlook, First Quarter 2016: Excerpts:
U.S., Europe, Japan, China – debt:
The Federal Reserve, the European Central Bank, the Bank of Japan and the People’s Bank of China have been unable to gain traction with their monetary policies….
Excluding off balance sheet liabilities, at year-end the ratio of total public and private debt relative to GDP stood at 350%, 370%, 457% and 615%, for China, the United States, the Eurocurrency zone, and Japan, respectively…. The debt ratios of all four countries exceed the level of debt that harms economic growth. As an indication of this over-indebtedness, composite nominal GDP growth for these four countries remains subdued. The slowdown occurred in spite of numerous unprecedented monetary policy actions – quantitative easing, negative or near zero overnight rates, forward guidance and other untested techniques.
Time for change: Nothing has been solved with conventional Central Bank monetary policy, unless one counts the gross enrichment of financial special interests and various politically-connected entities.
It is time to ‘recharge’ the system at ground level – with direct liquidity extensions to citizens.
The Leviticus 25 Plan 2017 – $75,000 per U.S. citizen The Leviticus 25 Plan 2017 (1483)