Monday, September 2, 2013

Must be another conspiracy theory.

Comment is free Another financial crisis looms if rich countries can't kick their addiction to cash injection

Just as people started to think that things were getting calmer – if not exactly brighter – in the rich countries, things have become decidedly slower and more volatile in the so-called "emerging market" economies... QE has become the weapon of choice by these governments because it is the only way in which recovery – however slow and anaemic – could be generated without changing the economic model that has served the rich and powerful so well in the past three decades. This model is propelled by a continuous generation of asset bubbles, fuelled by complex and opaque financial instruments created by highly leveraged banks and other financial institutions. Given all this, it is not a big surprise that those who benefit from the status quo have persisted with QE.

Posted by khards @ 03:03 PM (5179 views)
Please complete the required fields.



One thought on “Must be another conspiracy theory.

  • “(QE) has been the only weapon that the rich country governments have been willing to deploy in order to generate an economic recovery.”

    The fact that QE hasn’t generated any recovery after 5 years suggests that economic recovery is not the aim. The aims are to (a) enable bank balance sheets, and therefore banks, to stay afloat (b) create an environment in which leveraged speculators using cheap money can profit from asset bubbles (c) enable banks to lend abroad or buy foreign assets that yield anything above the rate at which those banks can borrow, forcing BRICS to keep their currencies competitive by holding USTs and (d) to keep asset owners onside in the polling booths. Holding back recovery also keeps workers obedient.

    What’s not to like about non-recovery QE?

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>