Thursday, February 18, 2016

Helicopter Money is coming. Why, when and how?

What is the helicopter money that is gaining momentum? How is this going to be done? What is the consequence when this happens? Check Jim Rickard's latest take on the world economy.

"...The current behavior in the stock market is exactly what I’ve expected to see at the beginning of a recession, too. Stock markets are leading indicators of recession. They typically go down about six months before recessions begin.
...

Printing money is only half of what’s necessary to produce inflation. The other half is lending that new money… having people go out and spend it… have banks leverage that money through credit creation and so on. That has not happened."

If the banks are not lending out money to create spending, who will do it next?

No comments:

Post a Comment