Wednesday, February 12, 2020

👉This QE is Helicopter Money -- This is how the FED is Monetizing The DEBT !!








Why do we hear so much about Helicopter Money lately? Here is what you need to know about the theory that for decades has inspired the work of famous economists and which has now has become strongly topical again. Many confuse the idea of ​​helicopter money with that of quantitative easing (QE). QE is an unconventional monetary operation designed by the central bank to purchase government bonds held by banks in exchange for liquidity. In essence, the central bank acts as a captive buyer of the outstanding bonds. The effect provoked by QE is to lower interest rates, making it less expensive to finance consumption and investments. However, this indirect QE stimulation mechanism did not work entirely as households and businesses were reluctant to borrow money despite negative interest rates. The helicopter money option is primarily a fiscal intervention that introduces new net financial assets into the private sector, stimulating the real economy directly and immediately, without passing through the financial system. For this reason, Helicopter money is also defined by the term People's QE. Is there a Hyperinflation risk? One of the main risks associated with money launched from helicopters is that it could lead to a significant devaluation of the currency and an exponential growth in inflation or even hyperinflation. As more money is printed and the supply increases, the value of the domestic currency may, in fact, decrease significantly. Since 1920, 56 documented episodes of hyperinflation have occurred, some of which involved monetizing public debt in order to support government spending now out of control. The danger is that the decision-making process of governments will become increasingly dependent on helicopter money and that any remaining constraints against excess paper money in the system would be abolished. The most famous cases of hyperinflation are those who have exploded in the Weimar Republic, Zimbabwe, and Venezuela. All of this historical evidence shows that human nature plays an important role in ensuring that helicopter money can truly be successful. The Fed does NOT work for the American people. Its goal is to enrich those who own and control it. Period. Make sure you have gold and silver people; it is your only defense from the banking system collapse, the plan that will keep people and nations in debt and enslaved for generations to come. This was The Atlantis Report. Helicopter money is already here, and the Fed is now actively monetizing debt the Treasury sold just days earlier using Dealers as a conduit. The Fed is already conducting Helicopter Money. This helicopter money is money provided to rich people and even richer corporations in the form of tax breaks. So the stock market stays goosed, and the rate of interest on government securities stays low. How long can this go on. Can we keep going like this for years? 2020 is going to be very very interesting in all aspects of life Honestly, I can feel we are very close to the end for once. The Fed's charter prohibits it from directly purchasing bonds or bills issued by the US Treasury: that process is also known as monetization, and various Fed chairs have repeatedly testified under oath to Congress that the Fed does not do it. Of course, the alternative is what is known as Helicopter Money, when the central bank directly purchases bonds issued by the Treasury and forms the backbone of the MMT monetary cult. But what if there is at several day intervals between Treasury issuance and subsequent purchase? Well, that's perfectly legal, and it's something the Fed has done not only during QE1, QE2, and QE3 but is continuing to do now as part of its QE4/NOT QE. The Fed is undertaking diabolical sorcery!. Since they are magically creating enormous amounts of funny money and buying the debt no one wants to hold, we must be at the final phase of their monetary system destruction. I understand why central banks are buying gold. These rules are so easy to get around; I wonder why they bother making them. Yeah, the banks are going to purchase T-bills, or they don't get their special elite privilege of access to the fed. Who gets access to 0% or less interest? Hint: Never a normal person with absolutely perfect credit for their entire life. JPM is buying T-bills at 50% margin, then repo half back to the Fed and leverage the new cash at 5 to 1 to offset mark to market issues. There is no need to pay depositors interest when the Federal Government supplying all the assets a bank or hedge fund could ever need. Every country is doing this. Each and every one. What does anyone think built those empty cities in China? Real money? The US needs this just a little longer to prevent the populous from rioting. Faith for another week, month, year. Do any of us really believe "they" (good and bad guys) don't see this, aren't encouraging this, or understand the outcomes? Of course, they do. Think Butch Cassidy and the Sundance Kid. Better than go out blazing than getting picked apart bit by bit. There is no way out at this point. Might as well just punch the gas pedal. Print more until the chaos hits. As long as everyone's 401k, IRA, and pension are going up, there will be no riots. As long as interest rates remain low, the game will go on, probably indefinitely. QE is not considered helicopter money until it is distributed to the masses who would run to the mall and spend it on an instant gratification whim. Helicopter money is when the fed/ treasury writes a check to every man, woman, and child in the US and calls it a tax rebate or universal basic income. Imagine for a moment that millions of banknotes rained down from the sky, precisely from a helicopter in flight. This economic event is called "Helicopter money." Helicopter money theory is nothing new. It was first exhibited in 1969 on the occasion of a university lecture conducted by the father of the liberal economy and Nobel Prize winner Milton Friedman. Suppose one day, a helicopter flies over your city and drops dollars from the sky, which would, of course, be collected quickly by the citizens. Let's also assume that everyone is convinced that this is a unique event that will never happen again. According to Friedman's hypothesis, people would take advantage of this one-off monetary gift and spend it quickly, thus restarting the economy. More recently, the idea of ​​helicopter money has not gone unnoticed by fans of the famous Spanish TV series "La Casa di Carta," when the Professor's band, albeit for purposes other than those proposed by Friedman, began to launch billions of banknotes from the sky causing chaos in the streets of Madrid. Why Helicopter Money and why now ?. Helicopter money is to be understood as the last hope to restart consumption and investments and avoid the specter of deflation, that is, the drop in prices in the economy. It is a bit like using the defibrillator to revive the heart of the patient in cardiorespiratory arrest. While the world economy is experiencing a phase of depression of productive activity and mistrust of consumers and businesses, with the prospect of a new recession at a time of interest rates at historic lows. Today, the attraction towards the theory of helicopter money is back in vogue. But above all it is no longer seen as a taboo, also thanks to the endorsement received by some prominent personalities in the financial world, such as Ray Dalio, founder of the hedge fund Bridgewater Associates, and Stanley Fischer, former vice president of the Fed and today economic consultant by Blackrock. The two aces of Wall Street claim that the ultra-accommodative monetary policies of the last decade have now run out of ammunition to boost the economy. Not only that, the distributional effects and the distortions in the prices of financial assets are there for all to see. To stimulate demand directly, fiscal policy must now play its part. The proposals so far put forward provide for central bankers, once omnipotent, to take on a role of greater collaboration with national governments today. Recently, Mario Draghi, governor of the ECB, has also embraced this idea by expressing the need to coordinate monetary instruments and budgetary policies. How to make Helicopter Money? The image of the rain of banknotes from the helicopter, although fascinating and engaging, should still be adapted to reality. In the most likely scenario, helicopter money would take the form of monetary financing for government tax programs. Basically, the central bank would print paper money to finance the government's economic plan. Once funding from the central bank is received, the government would have the resources to undertake new infrastructure projects or financial tax cuts. In the most radical hypothesis, money could be credited directly to citizens' current accounts. In this case, the central bank would undertake to make a monthly transfer to all citizens with a current account, until inflation reaches the target. People could use the money to spend freely in the economy without restrictions. In the Weimar Republic, Germany, the mark and stock market both peaked at the same time during the hyperinflation. Stock prices and nominal currency rose in tandem. This is an election year, so expect to see the Fed feed the economy to keep this bubble alive long enough to be able to point to it as an accomplishment by Trump. Don't expect either party to address the debt; they all want to feed at the trough. While all this is true, the question no one can answer is What alternative does the Fed have. They're so long past the point of no return that monetizing the debt is the only way that millions of Americans can get up in the morning and go to work at a job that doesn't come close to producing as much as they consume. Basically, the Fed has put itself in the position of holding the US economy solely under its control, which is all fine, providing black swan events that happen are confined within the US market. Black Swan events that happen in Europe or elsewhere in the world are a whole different kettle of fish. That is when the shit hits the fan. The private banking cartel known as the Federal Reserve was given a pass, in 1913, to create money out of thin air to make these T-Bill purchases. The question of Where did the Fed get the money to monetize this debt is so rarely asked or explored. In 1913, New York bankers induced some corrupt congress-critters (after most had gone home for Christmas recess) to. 1). Allow the private cartel to "create" money to purchase US debt. 2). Establish a national income tax so the lemmings would pay interest on said US debt. 3). Establish tax-free foundations (Rockefeller, Carnegie Mellon, Ford, etc.). Because the big boyz had no intention of paying the tax listed in 2). And then, 4). Money from these 'philanthropic' foundations is used to march through the institutions, to buy control of these institutions to suit the big boyz' for-profit and global governance agendas. Think the AMA and education of our young physicians to be purveyors of Big Pharma products; the Education boards to indoctrinate students to be good little proletarians; Research centers (e.g., cancer research which ignores study of food, nutrition, vaccines, etc.); Big Agriculture (--studies on GMOs ); Climate Change research; and of course, CONGRESS. Foundation money generated from interest paid by working grunts buys a whole lot of influence. Our demise as a nation can be traced to the march through our institutions using ill-gotten gains. This is theft. Same old, extreme redistribution for the inbred 1%, big welfare for the rich, and only diminishing purchasing value for the 99%. Helicopter money is when the people get guaranteed jobs, the money actually circulates, as opposed to being directly hoarded offshore by pedos. We are so fucked. And the waiting is the hardest part. KNOWING a crash is going to happen, and KNOWING it will be the ugliest thing since I don't even know what, but not knowing when or exactly how bad it will be. If you ever run across a friend or a loved one or even an enemy that you are in a heated argument with, concerning whether or not the economy is actually fucked, versus everything is roses, and you are just the crazy one, show them a 20-year graph of the DOW, for starters, as an instant explanation of what the fuck "helicopter money" actually means. If they still don't believe you, just walk away from the conversation. This was The Atlantis Report. Please Like. Share. And Subscribe. Thank You.












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