Trumpled (Alternative Leading)

[ElwoodBlues1]

QE isn't printing money as such, its about banks buying govt bonds and driving down the cost of borrowing further and providing more stimulus to the economy. Its the last resort after interest rates have been driven down to nothing like we are slowly seeing... Next step is another GFC when share markets go bang with all this extra money inflating stocks...

[PaulP]

I've heard Richard Woolf say there's a strong consensus that a recession will happen sometime this year, and Trump is trying various things to delay it or preempt the blame shifting to still be looking good at election time.

[LP]

QE isn't printing money as such, its about banks buying govt bonds and driving down the cost of borrowing further and providing more stimulus to the economy. Its the last resort after interest rates have been driven down to nothing like we are slowly seeing... Next step is another GFC when share markets go bang with all this extra money inflating stocks...

I'm not an expert but I was told it's not "banks" but the central / reserve bank buying government bonds, which is a critical difference to commercial banks buying government bonds, it's the government / central / reserve bank buying it's own bonds to put cash into the system. The money they buy the bonds with was printed yesterday, and if you let the process run wild you can end up like Zimbabwe with 1000% inflation, so the governments walk a tightrope trying to balance the rate they print cash with the rate of GDP and other external sources of income!

A friend I have likes to describe it as "Your backyard pool trying to fill itself with it's own water!"

The US Government writes itself an IOU every time it prints some more cash, one that will never be honored!

[tonyo]

Trump statistically has been a very successful president.

He's not respectable, but I have to say he's actually done the job better than anyone is giving him credit for.

Their economy is flourishing.  Unemployment is down.

Governments and leaders always claim it is their doing when things are going well (and someone else's fault when they're not....).

Funny thing is, economies go up and down regardless of who has the reins.  And while Government policy plays a part, it is only a relatively small contributor in large Capitalist countries like the US.  Do you think the big money-makers would have just shut up shop if Hilary had won?

The biggest problem is that Donald seems to actually think it is all down to him.......

[LP]

Governments and leaders always claim it is their doing when things are going well (and someone else's fault when they're not....).

Funny thing is, economies go up and down regardless of who has the reins.  And while Government policy plays a part, it is only a relatively small contributor in large Capitalist countries like the US.  Do you think the big money-makers would have just shut up shop if Hilary had won?

The biggest problem is that Donald seems to actually think it is all down to him.......

Yes, I have a contact formerly from the Aust Tax Office that would 100% agree with what you state. She tells me Gov Policy takes years to have any real impact, the stats from tax collection tell her about 6~7 years on average to put a number on it. So any policy benefit or detriment usually and nearly always comes long after the policymaker has gone! In effect that means someone like Trump or Scotty from Marketing are claiming the good work of their predecessors.

There is one rather significant way to break the rule and force Gov policy to have an immediate impact, start a war!

[ElwoodBlues1]

I'm not an expert but I was told it's not "banks" but the central / reserve bank buying government bonds, which is a critical difference to commercial banks buying government bonds, it's the government / central / reserve bank buying it's own bonds to put cash into the system. The money they buy the bonds with was printed yesterday, and if you let the process run wild you can end up like Zimbabwe with 1000% inflation, so the governments walk a tightrope trying to balance the rate they print cash with the rate of GDP and other external sources of income!

A friend I have likes to describe it as "Your backyard pool trying to fill itself with it's own water!"

The US Government writes itself an IOU every time it prints some more cash, one that will never be honored!

You are correct LP it is Central banks, I should have been more clear....Some CB's ie ECB actually purchase corporate bonds as well, Its about driving yields down by purchasing long dated govt bonds across the structure. It Influences yields and borrowing across the private and corporate sector after cash rates hit rock bottom.
Cant see us getting negative rates like in some other countries but I can see QE being used...unemployment rates will be the trigger IMO.

[LP]

Interesting perspective from the Europeans at Davos, they basically ignored Trump, he conducted news conferences to mostly the US media that came with him to the conference.

It looks like the Euro media has pegged his fake claims and accusations as school yard bullying.

Who'd have thunk that ignoring the bully was the best way to deal with him! :o

[madbluboy]

https://www.theage.com.au/world/north-am...53vu9.html

Democrats have lost the plot. Sanders is their only hope of beating Trump.

[LP]

Hmmm , it seems quantitative easing has now become a cheque directly to voters in the USA!   ???

[LP]

I see Alan Jones is pulling the plug, he must have grown tired of fighting reality, will the Banana Bolt follow suit?

There are a few things in the world making the right wing shock jocks look like clowns at the moment, stuff they've gone suspiciously quiet about. Most notably the rapid and almost immediate decline in human induced pollution levels.

You know stuff like the CO2 emissions they claimed was caused by volcanoes, seems the volcanoes suffer badly from COVID-19! :

It must all be a Chinese and USA state conspiracy to mitigate horrendous emissions targets! :o