Over the last few days, a few friends have asked me about the liquidity situation on the markets. So I thought I would quickly put together some valid data on where things are heading. My impression is that liquidity is increasing massively due to the Chinese central bank, Japan and probably also due to off-balance-sheet activities by the ECB and the Fed. Also credit conditions are far better than a year ago. Public debt is rising rapidly, as befits the adepts of stupid Keynesianism, and is being monetized smoothly by the central banks.
So far so good. It is possible that this swelling tide will also save the newly minted war president in the White House from a recession at the expense of future generations. At least for the time being, because in large parts of the economy, especially in the eurozone, things are looking quite scary. We should also continue to expect a liquidity boost from China, as deflationary tendencies cannot be overlooked there. The fiat system cannot survive deflation, which is why it will do everything it can to create liquidity and pump fresh blood into the carcass.
Someone told me that this '''Bitcoin'' is a way to protect against the debasement of money. I will continue my research in this direction and wish everyone a wonderful rest of the day.
Credits to: @crossboardercapital, @gmi, @dailyshot (all on 'X')
Thanks, this is THE economic issue of the day.... So, are the Central Banks effectively front running recession and deflation, by pumping in the liquidity now, before it's needed...?
reply
I would say yes. Question is if the reaction comes too late as of time lags like always? I would say 'yes' again.
reply
Cool, thanks for the insight as always
reply
You're very welcome. Greets T
reply