I don't get into specifics so much, actually none at all ; what trying to do instead, in multiple areas of derivatives, - to form understanding of fundamental truths/concepts. (reading between the lines, if one could say so) Thus, down below, very simple concept and a point of view/perspective. (mentioned it before few times, but there was no response) Those countries/unions, that end up printing money out of the thin air, to save their economy, will end up winning the game in these times, because, their companies/business will be saved (at least temporary - until doomsday's crap hits the fence) and later on, will be able , to acquire the companies/assets from countries abroad, that haven't printed anything and experienced a minor/major crisis in full effect, without unlimited supply of fake money. So in order to stay in the game, if a country/union has a chance to do so, it must print, otherwise, those who print, will buy out ,,your'' companies later on, with their money out of the thin air. The end of this printing game, will be fascinating (time scale unknown), in a most unpleasant way, sadly and ironically (unsurprisingly tho,since everything is so connected), even for those, who haven't printed anything except Christmas cards. Regular machine shop early 20th century. The Government Printing Office between 1909 and 1932.
Hey wrb, might be this one, but from the outside ? All jokes aside, my bad - haven't linked a source , here's where i found it at : https://en.wikipedia.org/wiki/John_Whitmore_(accountant) Cool pic tho, in large resolution, nice as a gift or office decor for oneself. (can only imagine, what goes through their heads, after long hours of monotonous job)
I bet it wasn't: "If I pull tis lill' lever just a bit faster, I can be more productive for my employer."
What is interesting is the following scenario: FED and ECB are printing and generating giral money (a French expression for not physical paper money / for electronical bits of money)... They are buying all kind of bonds, and stocks. Quantitative Easing is the devil's name ; So, in a far end, the central bank will be main holder of the biggest companies! Just have a look at Japan - BOJ is already major stock holder of most Japanese companies. What does that mean in the end?! That we have left the freedom of capital markets, and ended up in a socialist-finance universe... Countries again fighting against each other.
Probably that old man, with long white beard. Must be one from the unlucky ones, who grew up without a father, thus is seeking for validation from their bosses, by working extra hours and taking less pay, just to hear a praising word. (read my post for the second time, damn, sounds not nice, but might be the harsh reality) I wonder tho, does each one of those countries, does it for the same reasons ? ~Just a theories down below~ For e.g US would be doing it, since noone cares about those bonds anymore, the deficit runs out of control and it's at the conflict with China. (and, because it simply - ,,can do so'', = reserve currency) Then EU does it as a response, mainly for the reasons that i mentioned in original post (that's why they had talks about allowing EU companies to merge into giants as a response to worlds treats) and partially, because of inner events like rotten Bonds of Italy, then Greece & UK. The reasoning of BOJ is only a guess for me. Don't know, who's else big printers in this game.
Japan is in some sort of recession since 30 years! This is nothing new for them... If you would have invested before 1987 into Japanese stocks, you wouldn't have got your money back ever since then. Some statistics say, they already have 30% zombie companies, that couldn't survive without intervention of BOJ.
Yup, familiar with that, got a theory for it as well : https://www.elitetrader.com/et/threads/japans-fate-coming-to-us.342059/ Didn't knew about this tho. Damn.
And you think that having the Japan model staring us in the face The Fed would "try" something else? But noooooooooo.