China Scrambles To Enforce Capital Controls (Which Is Great News For Bitcoin)
Care to explain how capital controls are good for Bitcoin? This is China we're talking about, do you suppose the government officials failed to consider that people might spirit away their money by "investing" it in foreign currencies, stockes, or even Bitcoin?
its gimped:
http://www.newsmax.com/Finance/StreetTalk/jim-rogers-federal-reserve-economy-slowdown/2015/08/31/id/672878/if the federal reserve rallies the stock market with more QE then all the money will go into stocks to ride the pump.
if QE fails and people start leaving the dollar then that is another story..
I have a lot of respect for Jim Rogers, but think about what you're saying: If QE IV fails, then we will be in a serious depression with DEFLATION. Credit contraction will throw the money multiplier into reverse. Capital controls will compound the problem if they are implemented.
You are confusing the cause with the effect. If the Fed resorts to more outright money printing (as opposed to merely keeping interest rates artificially low), then it means they (and by extension we) have already lost. QE is straight up counterfeiting to reflate a bubble that has already popped.
People won't be leaving the dollar. The dollar will gain a lot of value because there won't be hardly any to go around. TOO MUCH QE could cause hyperinflation, but only after a deflationary period.
Let's back up to look at the big picture: For decades, the cost of money has been artificially low because every little hiccup in the economy was treated with a dose of cheap credit. The amount of private and public debt has gotten massive because some were borrowing to pay off earlier loans and others were borrowing to invest, chasing higher returns. Bubbles are caused by LEVERAGED investing. When the bubble pops, it's not the investors who suffer the lion's share of the loss. It's the creditors of those investors.
The banking system needs the equities bubbles to continue because if it doesn't, their losses will be so great as to make them insolvent. Not just a few banks. The entire system. No FDIC insurance can keep your deposits safe.
Capital controls never work long term because it's like shutting the barn door after the horse has already escaped. Who in their right mind would invest in a country with capital controls? It's like throwing your money into a black hole. Even if your investments produce high returns, how can you get the money out to spend it? Crypto can and will be used to skirt capital controls but we don't have nearly the market liquidity or the network capacity to make a dent in the macro picture.