Topic: Fed on brink of fifth(?) round of quantitative easing - page 11. (Read 2421 times)

The only way to pay interest on all debts is by creating more and more money.

That's the way it was designed. College and other tuition fees have been artificially inflated to extraordinary levels so for many people this is their only option if they want to go to college at all.

Just imagine if someone shilled an altcoin with the properties of USD today:

• Several trillion in circulation, but we don't actually know how much
• Unlimited supply
• Constantly printed at will, but new coins are exclusively given to the top 0.1% of holders
• Lost >99% of its value since launch
• Can be seized out of your accounts at any time

Somehow that's even worse than your average shitcoin scam!

Satoshi returning and moving any of their stash does not equate to new bitcoin being printed, though. We will never breach the limit of 21 million.

Bingo. This is normal now. The latest balance sheet shows they've printed another $100 billion since I made this thread a few days ago.

Here's a link without the paywall: https://archive.ph/EoHSv

soldiers to do what? run around on a battlefield sticking people with a spear on the end of their heavy gun?

i refuse to pay the new york times just so i can read that story.

apparently it was not just one lump sum expenditure in a single year. aka stimulus program where they handed out free money and printed a crapload of it for that purpose.

there's some situations we shouldn't stick our nose into but then others where you don't have a choice...but how many soldiers does it really take to kill one man?

Well, there is a bit more increase just like nothing happened. To think that fed saw the banks bankrupting after the increases in the interest rate and decided to increase it anyway is a big deal.

Now this is going to end up with two ways, either it is going to keep bankrupting banks anyway and it will keep on going bad and then printing will continue to save them and the people who have money in those banks, or the banks won't be bankrupting anymore and it was just those banks, and this harsh increases will make sure they collect more money and the inflation will drop to a very good levels. Let's see which one happens but I am not hopeful about the second one.

Correct. That's why everyone needs to buy even a small amount of BTC.

Good lucking finding soldiers then...

The biggest problem is this:

https://www.nytimes.com/interactive/2019/12/09/world/middleeast/afghanistan-war-cost.html

2 trillion bucks down the drain.

It's quite simple actually: USA should stop playing world police. There you go, 2 trillion $ of taxpayer money saved! Who would've thought, right?

And of course with Bitcoin it would be nearly impossible to print so much money to fund wars (well, unless you're Satoshi and you want to donate your 1m BTC stash).

maybe if the army stopped paying for peoples' college educations (and suvs and houses), they could make a small dent in this huge military spending budget. so i guess these soldiers are worse than illegal immigrants in that respect, they are costing us more than them!

$13,000 for a band-aid you mean?

in a civilized society everyone should be entitled to free healthcare but we're far from that.

imagine if bitcoin was like that. satoshi could just turn on the printer and mint more bitcoin whenever he wanted. who would agree to that?


 

Which is my point exactly. $1.7 billion is nothing. We spend $800 billion a year just on our military. That's 0.2%. The completely unnecessary extra 6-7% of GDP we spend over and above European countries because of our moronic healthcare system equates to about $1.4 trillion.

So the average spending on healthcare in developed nations by their government is around $6,000 per person. For us, it's almost $13,000. As I said above, our government spends around 6-7% more of our GDP on healthcare than similarly developed European countries. But on top of that, we also pay huge insurance premiums and out of pocket expenses which most European countries don't have. And, for that huge amount of extra government spending, employer spending, insurance spending, out of pocket expenses, people going bankrupt, etc., the care we get is constantly rated as one of the worst in the developed world.

But God forbid we actually want to get better care for less money by cutting out all the predatory insurance companies and middlemen! That would be sOcIaLiSm!

No, far better to hand huge amounts of money completely unnecessarily directly in to the pockets of insurance company CEOs and the like. They are the ones buying out our politicians after all. And why not? The government can always just print more! Brrrrr!

Perhaps if developed countries such as the USA were not plundering the raw materials and other resources of poor countries, people would not need to emigrate. Do you think people emigrate for the sake of it?

But I don't want to go off-topic in this thread about QE and the monetary system. In the end, what the FED and other central banks do is a flight forward, like the one who is drowned by loans and what he does is to ask for another loan to refinance the previous ones. It is a temporary solution to a permanent problem that will eventually explode.

i read that 116,000 illegals came across the border in just 2021. so just for them, lets say each one of them runs up 5000 in medical bills and gets 10,000 welfare from the government. You know how much money that is? $1,740,000,000.

Now the thing is, that's happening every year. think of adding on another $1.7 billion in expenses for taxpayers every year. 2022,2023, it's an exponential thing.At some point that could become as large as the military budget.

but you're definitely right that military budget here in the usa is way out of control and has been for decades. that's one of the things that make this country problematic. the healthcare system is broken because hospitals can charge anything they want because they bill insurance companies not individuals. individuals get bankrupted and spit out...

Economic growth does not show up on the Fed's balance sheet. The balance sheet was essentially static between 2002 and 2007, despite all those years having good economic growth, with 2004 being as high as 4%. Everything on the balance sheet represents new money being printed by the Fed.

That's party of the problem. Politicians don't want to make the hard decisions now, because it will cost them elections. Better to make the easy decisions and kick the can down the road endlessly. That's why we are constantly printing money, why our deficit is constantly increasing, and why we have to constantly increase the debt ceiling. The debt is over $30 trillion and continuing to increase quickly. We are having to borrow more just to keep up with interest payments. How high can it get before the whole thing collapses? And all the while, the average person just gets poorer and poorer.

The amount spent on illegal immigrants is absolutely dwarfed by the amount we spend on the military or our broken healthcare system. We spend 18% of GDP on healthcare - most of Europe spends around 11-12%.

Care to tell us where you are so lucky to be from? Monetary policy around the world is generally like that of the USA or even worse, but maybe there is some country that doesn't use the fiat ponzi system and I haven't heard about it.


The problem with the money created is that it is not distributed equitably. The Cantillion effect has been known for a long time:


They cannot. The current system creates money as debt which, when it is created, also creates interest to be paid. But the money to pay the interest does not exist and the only way to keep everything from collapsing is to keep creating more money by creating more debt, which creates more interest to be paid.


In theory yes, but so does gold and it has not been used for a long time. I think politicians will do anything rather than give in. What I find interesting is that just as central banks have gold reserves as a back-up, despite the fact that there has been no convertibility between currency and gold for some time, the BIS also recently announced that cryptocurrencies can be used as reserves:

BIS Allows Banks to Hold 2% Of Their Reserves in Cryptocurrencies

I imagine that when this is implemented, bitcoin will be the strongest reserve cryptocurrency.

maybe then all the illegal immigrants that keep flowing across the boarder in texas will want to go back home but i doubt it. but it's a serious problem that i think is causing inflation because they are printing more money to support many of these people. some of them are on welfare some are displacing americans from jobs and that's how it is.  

https://www.pewresearch.org/fact-tank/2023/01/13/monthly-encounters-with-migrants-at-u-s-mexico-border-remain-near-record-highs/

welfare means taxpayers are paying for them. bailing them out. but money doesn't come from nowhere, sometimes you just have to print more of it...biden doesn't care though because they want more of these people here so they will keep them in office and vote for them  

if the government is willing to let tens of thousands of illegal immigrants come into the country and take up resources then I don't know what to say. it just means that NOTHING is off limits anymore. forget about your retirement and social security thanks to these people coming in and sucking everything dry...

They wont be doing QE while raising interest rates surely.   The whole thing is a mess for sure but that would be quite an obvious mistake, conflicting with themselves.  Its already the case that the FED while trying to tighten policy ends up running opposite to government with loose fiscal budgeting.  Sensible as they try to be unfortunately it doesnt work, it explains why humans should not try to manipulate free markets and illustrates how we undermine ourselves also just plain corruption.  People will always take advantage, 2008 was in part because of the backstop given to mortgages which just became exploited and ironic negative introducing greater harm then less done.

Even if the FED does nothing, it will unravel we will have the consequences of prior QE and the inability to control those effects for decades after.  Mostly that means inflation but also excessive volatility, clearly we need alternatives and markets will search and find means to stabilize themselves from the ongoing harm of QE.

I am quite happy about this as a non-american. Let them do the mistakes and may we be profit from this. So far we haven't, it hasn't gone down that road just yet, but if they keep being mismanaged like this all the time, there will be a time when we will catch up, and when that happens we will get cheaper stuff than right now. Its not good for the world of course, most nations have dollar reserves and all, the value of that would drop and I understand how it could ruin the financial markets, but at the end of the day dollar being much stronger would hurt our daily lives as well, it already did, so I rather watch them have a bit of trouble time to time.

The size of the fed's balance sheet isn't really a concern in terms of consumer markets. Whatever inflation is printed by the fed is usually contained inside of banks, financial institutions and the government. It remains contained inside of bank and state lending, and doesn't trickle down to retail markets. Where it might drive the cost of priced goods in an uptrend.

The term bubble hasn't ben used by the media since they claimed "bitcoin is a bubble" in years past. That's a key angle which is lurking something like an elephant in the room.

A bubble is the biggest danger associated with the fed expanding its balance sheet as it implies banks and large financial institutions are taking bigger risks with their depositors money. Which are increasingly leading to them being bailed out of their bad investment practices. Given a perfect storm of worst case scenarios, a sufficiently large debt bubble could trigger another 2008 financial crisis.

The fed lending to banks is ok. Its only a problem if banks cannot payback their debt. Or debt bubble grows large enough to where banks can no longer be bailed out.

I wish bitcoin could fix this type of problem. Technology is always seeking to engineer and design away problems caused by the questionable choices of people. Bitcoin was built to decentralize finance to protect the wealth of consumers from being solely reliant upon government and banks. Not so much to prevent banks and financial institutions from taking large risks which could threaten the stability of the global economy. We need another coin for that.

I think this is just getting at a different level these days. I mean yeah we used to have the same thing as well and I understood the money printing stuff, it made sense and I understand it, it wasn't really that weird. These days when you look at it over half of the money ever printed by the USA has been printed in the last 15-20 years, over half, that means for 200+ years they printed as much as they printed in the last 15 years.

I always understood "a bit" but this is getting insane levels, like what's next printing another 10 trillion in the next 10 years? That can't go on, it is not sustainable and it would create a huge chaos in the world if they keep it up.

3 years (since COVID).

The endgame has 4 characters: it starts with C and ends with C.

https://twitter.com/balajis/status/1636797265317867520

 



 

I'm sure that in 20 7 years there will either be very large transaction volume or no volume.