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Helicopter money…it is coming!

“HELICOPTER MONEY! IT’S COMING!”

By Gary Kaltbaum-July 13,2016

My goodness! In case you did not know, in the past few days, Mr. Bubble (Bernanke) was sent to Japan to cure their ills. His remedy…”helicopter money.” We are not making this up. Mr. Bubble is now urging Japan to go to the next level. 0% rates? Not enough. The printing of trillions? Not enough. Negative rates? Not enough. The outright buying up of markets? Not enough. Mr. Bubble is now telling Japan central bankers to just hand out money to consumers and businesses in order to goose spending. In other words, go deeper into massive, uncontrollable debt to cure the ills of a country, who’s problems have been caused by that same uncontrollable debt. We expect Japan to announce something very soon along these lines.

But that’s Japan. Overnight in Australia, Fedhead Loretta Mester now says “helicopter money” could be considered to stimulate America’s economy if conventional monetary policy fails. In other words, direct payments to households and businesses. AND THIS WOMEN IS SUPPOSEDLY IS A HAWK!

“We’re always assessing tools that we could use,” Mester told the ABC’s AM program. “In the US we’ve done quantitative easing and I think that’s proven to be useful. “So it’s my view that [helicopter money] would be sort of the next step if we ever found ourselves in a situation where we wanted to be more accommodative.

We do not know where to start and we certainly do not know where to end on all this. This spiral of debt,deficits, 0% rates, negative rates and the rest of this monetary hijinks is again lifting markets, papering over what will eventually and certainly come back to haunt things in ways unimaginable. The fact it could possibly come from higher levels will not help things. Debt and deficits matter…ULTIMATELY. Ultimately has not been hit yet!

Markets act well here. As we have stated, breakouts of major indices from 18 month ranges are usually good things in the near term. And the fact that there is 11% cash in mutual funds and pension funds only could add fuel as managers cannot sit on that much cash as markets move higher. Earning’s season straight ahead!

2 Comments

  1. Actually, helicopter money is not a bad idea.
    I have been screaming for it on other blog websites, until the Jewish bastards cut me off.

    It’s a Simple idea, and it will work.
    just print xx k into every bank account, ….debt free.
    Not a 0% interest loan, but a debt free gift.

    law of economics:
    Bad money is chased out of circulation by good money.
    The bad money in this case is…..debt.

    The problem with the global economy is a massive overburden of debt.
    The banks could practice debt forgiveness…. But how to chase down all that debt.. ?

    So, ooo…. simply print xx k of free money into every bank account.
    Folks will:
    Save it : ……money in banks to loan.
    Spend it: …..Economic stimulus.
    Pay down debt with it: …..debt forgiveness.
    Or: Invest it…

    Any way you look at it, free debt free money will stimulate the global economy, by paying down debt or increasing consumption or investment.

    Pass out the money, let the natural forces of economics work.

    I,,,,, am,,, a,,, genius.

  2. As long as everyone keeps printing, no country’s currency takes a hit. Wow what a great strategy! Who could have ever thought of this, no doubt only a genius. A really hard working one too. That’s why they make the big bucks.

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