May 13, 2021

GIL

Daily Global New Media

Liquidity Trap: The Point When Money Printing Loses Effectiveness For Central Banks (Live Stream)

1 min read

29 thoughts on “Liquidity Trap: The Point When Money Printing Loses Effectiveness For Central Banks (Live Stream)

  1. The day Trump attempts to relieve the FED of any smidgen of it's debt – based power, he will have chosen plomo over plata. The decision will not even have had time to become public. Assassination or Epsteinization.

  2. That is a lot of nonsense about the liquidity trap. When interest rate is near zero and going negative, why should banks lend money to productive means when they can make more from financial products. Central banks know that money is not getting out to main street ie productive industries. So central banks incentivise the banks to dabble with unproductive financial products where they can leverage up without any risk as central banks tell them that interest rate will remain low. In financial products, banks are afraid of interest rate going up and if they are told that rate is going down, there is hardly any risk. Fed even incentivise banks to keep money with Fed and earn handsome interest on money deposited with Fed. So liquidity trap looks like it is planned for banks to make free money from free money through QE. Brilliant. The new method is even more atrocious and in your face by lending to hedge funds. What about main street? Fed is very questionable??? Main street needs help not the financial companies.

  3. I would like to see you talk a lot more about real interest rates, real inflation too. My understanding is It's not right to continue to talk about interest rates this and that. and inflation this and that, with out making the distinction between the two – it is vital in truly understanding what is happening and where it is heading. SBTV, what do you think?

  4. I think we are much higher than that with the Fed debt sheet … Do we really believe they are telling us all their Easing and printing? …. who knows where they are active ? …

  5. The velocity of money is not a function of the supply or the interest rates, it is a purely psychological phenomenon. People spend more when they feel optimistic and horde more when they feel pessimistic. But if people become worried about the currency itself, the velocity will go exponential, that is what is known as hyperinflation

  6. To me velocity of money is a proxy for confidence in the whole system. Consumer confidence, lender confidence, all forms of confidence. A healthy economy has a high velocity of money and a zombie economy has the opposite. Confidence and velocity of money are the real economy, much more important than reserves. Who has a plan to build confidence? That's a far bigger challenge than liquidity.

  7. Anti Money Laundering Law in Germany – if you buy Gold for more than 2000Euro the seller needs to comply with KYC thats all. There is still no limit for buying when you are OK.

  8. 27,000 metric tons of silver mined last year
    3,000 metric tons of gold mined last year.
    Mining ratio out of the dirt 9:1 silver/gold price ratio 86:1 today ? ?
    60% of siver mined used in manufacturing and % growing yearly.
    SILVER MASSIVE MOVE COMING ?

  9. I'm really confused about all that railroad stuff. All the railroads were not public, they were private (or corporate). They were given land grants. So, if the public was paying that was due to the agreements made between the government and the railroad companies. So, we should be criticizing the corrupt government officials that made any of that happen. Roads and bridges are publicly owned and maintained. That is completely different.

  10. Peter Schiff is great but a bit of a luddite when it comes to Bitcoin (Bitcoinophobic). No surprise he managed to lose what he had which was given to him by others anyway. I'm guessing this is more of a stunt to yet again dump on Bitcoin.

  11. Hey Patrick! Missed you Live today but will watch now! Also just thought you may like the book I heard about on the Money GPS (youtube). Called "Infectious Greed" I just brought it on Amazon Kindle.$6.79 USD.

  12. President Andrew Jackson ended the first Bank of America in 1835. this was the first central bank and he called them a den of thieves. that is why President Jackson is in this Ad by President Trump.
    Also the US$20 would buy one Troy Ounces of Gold from 1789 till 1935. The Federal Reserve Bank started printing unbacked currency from their founding in 1913 and this became apparent in 1934 so that President Roosevelt had to confiscate the American citizens gold.

  13. It is not an "increased appetite for risk"! it is a need for yield on the investments of 7.5% by retirement funds that has them pursuing increasingly risky investment products. The products are leveraged tranched loans like student loans, car loans, etc that the ratings companies "swear" are AAA rated when they are not.
    This will become clear to all of us when our retirement programs (like CalPers) go bankrupt.
    Buy gold and silver and grow a garden as those will be the only retirement program you have left when this all collapses.

  14. Trump Loves Gold… On his plane, furniture , walls… any who loves gold that much , must want it in his wallet.. Liked shared and already subscribed.. as always.. many thanks Patrick ..

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