COVID-19 Bailing out Bankers

[M_Ali + 32]

COVID-19 agents of wrath of God unleashed on Men for killing & eating other creatures with equal right to life on earth or tailor made deadly viruses to suit and save the Bankrupt Banksters again?! The Banksters have a long history of causing global boom & bust cycles and financial collapse from early 1900 to 2008 in modern times. This time round people instead of running on banks to draw their savings are running for their lives to hospitals hopefully equipped with ICU & Ventilators. The COVID-19 viruses admittedly while attacking the lungs of global population young and old are now clearly seen as saving the global Banksters asses hiding behind the thick cloud of fear gripping the world population. Their agents and analysts are increasingly crowding the health experts & workers across their accomplice main stream global media networks pretending to act as God sent saviors of people and businesses loosing trades and their livelihoods due to the global pandemic with their all too familiar snake oil cure with colossal debt-manufacturing Diagnosis & Prognosis, combining monetary policies (slashing IR to lowest on records near zero stealing from savers & pension funds etc, relentless QE-Money Printing) and Fiscal Policies (forcing GOV to borrow those stolen/printed money for massive deficit spending on mega projects controlled and managed by the banks & their crony contractors. The Banksters are in fact saving their own ass-ets and businesses they own or heavily indebted to them, now loosing trade with more debt than equity. Debt Manufacturing is the real economy they own and operate, for every $1 of growth they create $3 to $4 of interest bearing debt. Debt is the wealth of the Rentier Ruling class. Banksters Revisited to save their own asses whatever it takes in typical transatlantic cahoots & concerts.

https://www.project-syndicate.org/commentary/coronavirus-fed-rate-cut-ineffective-by-willem-h-buiter-1-2020-03

https://uk.finance.yahoo.com/news/businesses-welcome-chancellor-intervention-warn-193830338.html

https://uk.finance.yahoo.com/news/does-coronavirus-fiscal-package-compare-191500429.html

[Rhelmey + 1]

Weird

[canadas canadas + 136]

Anti-Neoliberalism is a new trend globally.  It is suspicious that CV has appeared at this time of people worldwide uniting against neoliberalism.

[Boat + 1,324]

2 hours ago, M_Ali said:

COVID-19 agents of wrath of God unleashed on Men for killing & eating other creatures with equal right to life on earth or tailor made deadly viruses to suit and save the Bankrupt Banksters again?! The Banksters have a long history of causing global boom & bust cycles and financial collapse from early 1900 to 2008 in modern times. This time round people instead of running on banks to draw their savings are running for their lives to hospitals hopefully equipped with ICU & Ventilators. The COVID-19 viruses admittedly while attacking the lungs of global population young and old are now clearly seen as saving the global Banksters asses hiding behind the thick cloud of fear gripping the world population. Their agents and analysts are increasingly crowding the health experts & workers across their accomplice main stream global media networks pretending to act as God sent saviors of people and businesses loosing trades and their livelihoods due to the global pandemic with their all too familiar snake oil cure with colossal debt-manufacturing Diagnosis & Prognosis, combining monetary policies (slashing IR to lowest on records near zero stealing from savers & pension funds etc, relentless QE-Money Printing) and Fiscal Policies (forcing GOV to borrow those stolen/printed money for massive deficit spending on mega projects controlled and managed by the banks & their crony contractors. The Banksters are in fact saving their own ass-ets and businesses they own or heavily indebted to them, now loosing trade with more debt than equity. Debt Manufacturing is the real economy they own and operate, for every $1 of growth they create $3 to $4 of interest bearing debt. Debt is the wealth of the Rentier Ruling class. Banksters Revisited to save their own asses whatever it takes in typical transatlantic cahoots & concerts.

https://www.project-syndicate.org/commentary/coronavirus-fed-rate-cut-ineffective-by-willem-h-buiter-1-2020-03

https://uk.finance.yahoo.com/news/businesses-welcome-chancellor-intervention-warn-193830338.html

https://uk.finance.yahoo.com/news/does-coronavirus-fiscal-package-compare-191500429.html

Maybe another’s god  gives little thought to trivial matters like the global economy and seniors dying early in the midst of an extremely overpopulated world. Space is large with billions of planets and earth may only come up on the 100 year review. I like you have concerns about massive global debt but I think that has more to do with human greed and power than anything else. Humans have little history of creating systems that fairness, empathy and careing are its main goals. That said Authoritative governments are more blatant about abuses of power.

[Zhong Lu + 845]

Don't eat aardvarks.  

[Justin Hicks + 162]

[canadas canadas + 136]

8 hours ago, Boat said:

Maybe another’s god  gives little thought to trivial matters like the global economy and seniors dying early in the midst of an extremely overpopulated world. Space is large with billions of planets and earth may only come up on the 100 year review. I like you have concerns about massive global debt but I think that has more to do with human greed and power than anything else. Humans have little history of creating systems that fairness, empathy and careing are its main goals. That said Authoritative governments are more blatant about abuses of power.

For the last 40 years neoliberalism has dominated the economic, social and political affairs of many countries. It has made money the most important thing as the be all and end all of everything.  The facts are that up until now no government has really been listening to what the majority of its own people really need. This is a manifestation of neoliberalism.  It seems that economists tend to favor one economic theory over another rather than mixing the best features from different ones. Also, increasing populations and decreasing resources are usually not factored into them.

Edited March 18, 2020 by canadas canadas

[James Regan + 1,776]

1 minute ago, canadas canadas said:

For the last 40 years neoliberalism has dominated the economic, social and political affairs of many countries. It has made money the most important thing as the be all and end all of everything.  The facts are that up until now no government has really been listening to what the majority of its own people really need. This is a manifestation of neoliberalism.

Is this spam

[Douglas Buckland + 6,308]

9 hours ago, Zhong Lu said:

Don't eat aardvarks.  

Do you mean only fresh aardvark? Is aardvark jerky (biltong to you South Africans...) allowable?

[Douglas Buckland + 6,308]

32 minutes ago, James Regan said:

Is this spam

Yes

[NessyOil + 5]

This is incredible    The algos are holding the Dow around 20K while the bankers get super short   there is a wall of sell orders just below this   Its like I'm living in a dream  it can't be true?????

[0R0 + 6,251]

8 hours ago, canadas canadas said:

For the last 40 years neoliberalism has dominated the economic, social and political affairs of many countries. It has made money the most important thing as the be all and end all of everything.  The facts are that up until now no government has really been listening to what the majority of its own people really need. This is a manifestation of neoliberalism.  It seems that economists tend to favor one economic theory over another rather than mixing the best features from different ones. Also, increasing populations and decreasing resources are usually not factored into them.

We are on the verge of declining populations globally, and have already peaked some years ago for OECD+China and just discovered how to produce copious amounts of Nat Gas, and have lowered costs of solar to the point where at times of the day electricity is free but for capital costs. The circumstances are entirely different from what you think they are. 

Is the neoliberal dogma been diverting governments from their people's paths? You bet they are. There was never a popular support for it. The bureaucratic takeover of people's lives was always an external imposition by governments whose comfort zone of discourse is uniquely other  government officials from other countries. It is the creation of a global administrative social class taking over governments, academia and business bureaucracies and its dogma.  It is essentially a stealth coup destat carried out globally by a social class against everyone everywhere. 

[0R0 + 6,251]

It isn't about bailing out bankers, it is about keeping the economy afloat while a third or more of it is essentially shut down due to the covid 19 breakout. The financial system needs to stay afloat to run the rest of the economy. The two months of backstopping affected businesses in what is the largest employment sector in the country (travel and hospitality) so that they can hold on to their workers and their workers can have a paycheck, is essentially what a business interruption insurance policy would do. Most of those do not cover pandemics nor the zombie apocalypse. It is essentially the government standing as the insurer for what is the economic effect of a public crisis.

Many other countries can't do so because half of their revenues and consumption are either exports or imports. Germany stands out. S. Korea too. They need to finance everything in the Eurodollar markets and sell whatever assets are on their books for cash NOW.

All the world's financial systems need to raise dollar cash NOW. Enough to cover payroll rents and interest for 2 months at least. That is why the CBs need to step in NOW, and buy whatever people are selling to raise funds. Dealers can't do it on a one way trade. Only banks and the Fed can expand the money supply on the other side of the purchases to create the necessary cash. The Fed can broaden purchases to currency swaps corporate and muni bonds and asset backed and other commercial paper, but the main participant that needs to do this is the banking system - meaning suspending the Volcker rule completely. So banks can take on the entire variety of assets, or fund financial intermediaries from hedge funds to investment banks and dealers.

We may finally have the chance to induce a global price inflation spike as we essentially pay people to make nothing. Unfortunately, the China economic stats coming out from the covid 19 quarantine's peak period is showing a 3:2 ratio of spending to production declines, while investment fell by the worst amount, 2 X production and 120% of the decline in spending. That is a deflationary short term condition, indicating demand destruction being much faster than production decline. 

This dash for cash is very obvious in the dollar market where the Dixy is at new records, and the trade weighted dollar indices are blowing out. A high dollar exchange means pressure on all US assets as an indication of severe dollar liquidity problems around the world. That was the situation for over a decade, which the Fed ignored most of the time. It still ignores it till it hits the functions of the internal financial market. 

We need banks to lend liberally and aggressively - which means that they can't be restrained by the excess capital requirement. So that went out the window.

We can't fix the fundamental problem of the Eurodollar global banking system that interest rate spreads in the market only allow banks to cover credit losses and hardly anything beyond to generate profits. Perhaps the huge fall in energy prices the last two years will help, that improve margins sufficiently in industrial economies so that the relative rates borrowers are willing to pay are greater than investors are willing to accept. The demographic incline indicates a perpetually high relationship of savers to borrowers in OECD+China, such that real rates must remain negative. The only policy discretion is as to how much inflation is generated to determine the nominal rates.