Quantitative easing

market trader of 35years here.

wonder why crypto keeps going up and is not dumping?

tether + bitfenex.

as a professional trader for decades, i am here to report my experience.

alot of my colleagues dumped all their bluechip shares years ago because they thought BS quantitative easing would crash the market, it didn't.
everyone knows what the end game is, but as long as governments print, the markets keep going higher and higher. everyone is in on the con. If you think bitfenex/tether are cronies, wait till you have a job on wallstreet, they make bitfenex look like amateurs.

as long as tether and bitfenex is still in the game, we are going to go pass 20K+ BTC. the government will do as they always do, Bitfenex will get a massive fine and everything keeps tracking forward. Everyone is here for the $$$.

There's a lot of fud going around now from a coordinated group wanting a major crash to buy cheap BTC.

Anyway DYOR. My 2c opinion

Attached: qe.jpg (300x168, 17K)

Other urls found in this thread:

wolfstreet.com/2019/04/08/what-would-stocks-do-in-a-world-without-buybacks-goldman-asks/
zerohedge.com/news/2019-04-06/banning-buybacks-would-crash-market-goldman-warns
thestranger.com/slog/2019/03/27/39737914/get-ready-for-a-huge-stock-market-crash-thatll-be-caused-by-the-buyback-bubble
census.gov/construction/nrs/pdf/uspriceann.pdf
multpl.com/us-median-income/table/by-year
en.wikipedia.org/wiki/LADA_4x4
lada.ru/en/cars/4x4/bronto/about.html
slatestarcodex.com/2014/09/24/book-review-red-plenty/
federalreserve.gov/newsevents/other/o_bernanke20101105a.htm
i.4pcdn.org/pol/1538320109602.jpg
twitter.com/NSFWRedditVideo

USA was built on enslaving the goyim. Money is just a proxy they use for enslavement.

The slavemaster gives you symbolic money that you are then forced to use to continue slaving and cover the inflated costs of private transportation, shelter, food, healthcare, education... that the slavemaster extorts from you

The capitalist economy is a closed loop system where all the money lavished upon the slave ends up returning back to the slavemaster

So if I buy penny stocks I can escape?

The 2017 rush to 20k was too much one-of-a-kind. I can see some green now, but nowhere near those old sentiments. It's over.

You've been trading for 35 fucking years ?

Can I get a backstory on this ? Why are you even here shouldnt you be a billionaire ?

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trading is a meme

tax-exempt institutional investors ( pension funds, IRAs, 401k, foreign investors) represent about 75 % of publicly traded US shares
Some 1/3 have 401ks, I imagine individual stock ownership is even less. I'm ignoring those microstock apps like Robinhood.

The middle class never trusted the stock market ponzi and had very low stock investment participation rates. The middle class had no confidence and trust in giving their hard earned money to a stock ponzi scam.

Until the 1980s, stock investment was always a niche practiced by a minority. The era of financialization changed that with governments forcing middle class to participate in the stock market by transferring pension funds into the stock market (401k). Now, 30% of a goyim's salary is taken out the paycheck and used by Hedge Funds to gamble on the stock ponzi. Now pension funds exist, where goyim are mandated to give 30% of their salary so they can prop up hyperinflated zombie companies and fuel the ponzi scheme.

The 1973 market crash also created the necessary extreme negative in investor psychology. The 1974 bear market low was also known as a “black bear market” as investors were so brutally ravaged they did not return to the markets in earnest until nearly two decades later.

"It was Armageddon," recalls Brian Winterflood, chairman of Winterflood Securities. "It was a complete victory of communism, and the end of capitalism." By January 6 1975 the FT 30-Share Index had hit 146, a 73pc slide from its 1972 bull market peak of 543.6 - or 80pc in real terms after inflation.

Recovery was a slow process. the US didn't see the same market level in real terms until August 1993, over twenty years after the 1973–74 crash began

This irresponsible stock ponzi will lead to the endgame of lost confidence in global capitalism!

Probably because he isn't even a millionaire.
For every trader that made it, there are hundreds that are scraping by all the way to retirement.

one for the library, thank you!

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this. debt = enslavement.

without mortgages, house costs 50k

introduce mortgages, and now goys with only 5k to their name can borrow 50k to buy the house. Now they start bidding up the price borrowing more and more (aka enslaving themselves) and pretty soon the houses cost 500k with the goyim stuck with 40 year mortgages to pay it off. Lifetime enslavement.

the everything bubble was intentionally created After flooding capital markets with trillions of QE Yellen Bux, enabling CEOs to goose their compensation by using ultra-cheap borrowed money for stock buybacks – which used to be illegal, for good reason – the Fed has the gall to warn about dangerous levels of corporate debt

corporations and govt prop up the entire market. 85% of the entire US population does not invest in the market

Banning Buybacks Would Crash The Market, Goldman Warns

Companies buying back their own shares has “consistently been the largest source of US equity demand.” Without them, “demand for shares would fall dramatically.” Too painful to even imagine.

wolfstreet.com/2019/04/08/what-would-stocks-do-in-a-world-without-buybacks-goldman-asks/
zerohedge.com/news/2019-04-06/banning-buybacks-would-crash-market-goldman-warns
thestranger.com/slog/2019/03/27/39737914/get-ready-for-a-huge-stock-market-crash-thatll-be-caused-by-the-buyback-bubble

Isn't the whole ponzi running out of steam? I know people have been saying that for decades but we really can't do anymore QE and it looks like the IMF plans on moving into negative interest rates. But with crypto in the game now, won't people eventually flee the fiat ponzi? And who is going to buy the bags of boomers dying and cashing out their pensions? Also if things crash in the meantime we have Trump in office. He is clearly aware of the Fed and could very well start nationalizing shit in the event of an economic meltdown. It's clear there is a struggle on mount olympus and he was never (((planned))) to be at the reins during this critical juncture.

$940 billion buybacks for 2019
$770 billion buybacks for 2018
2007’s buyback record of $589.1 billion

Profit is debt, nothing about profit is beneficial for country. If you buy 100 apples for 100 dollars and sell them next year for 150 dollars you haven't benefited anybody, haven't produced anything, you just washed money, what profit is. Then you will use your profit and make other people work for it to produce more apples. You aren't producing apples, you are just selling them.

You have a large net economy, but you produce nothing, so those profit makers import illegal Mexicans who produce to feed your dumbass fatass.


Nation's can run on ponzi's as long as they do not run out of food and humans. Papua, Haiti are nations that survive on the supply of basic food that modern agriculture produces.

The ponzi is merely hype psychosis of the populace, as long as they are fed, ponzi's can always be re-engineered and inflated.

A nation can turn citizens homeless and kill off the entire population, as long as there are millions of immigrants to replace the populace.

in May 2014, Bernanke said that he does not expect the Fed's interest rate to rise back to its 4% average during his lifetime.

Larry Kudlow has done Bernanke one better, said that he does not think that rates will go up ever again, "maybe never again in my lifetime", effectively admitting that the US economy is on the verge, if not in, a recession (either that, or giving a pretty dire prognosis of his own health)

You clearly weren't around in 2013

>bring up QE
>Doomer cancer has to post their europoor libcuck opinions

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"The market can stay irrational longer than you can stay solvent"
-some smart dude

do you have a collection of stuff like this?

Obvs anyone with an iq above 110 can realize tether will make another bullrun while they have time, their profits are real money, the cost of making another bullrun isn't high, it will take a few years to make tether pay the money so in the meanwhile there will be AT LEAST one bullrun

Finance is merely a proxy for commands that the slaves accept in exchange for paper that can be redeemed to supply the slave with living needs such as food, clothing, shelter etc.

as long as there are fools there will always be ponzis/scams. recessions are when the scams exausted the supply of fools and are waiting to build up and gather fresh new meat to slaughter in the next bubble

the ""business cycle"" is the classic ponzi bubble and bust movement of the stock market.

the actual term should be the "ponzi cycle" or "speculation cycle". the ponzi cycle follows the mathematics concerning exponential growth, until the speculation frenzy dies due higher interest rates.

For a ponzi cycle of the stock market to make money for everyone who enrolls in it, it would have to expand indefinitely. This is not possible because the population of Earth is finite.

When the stock market inevitably runs out of new investors, lacking easy credit (interest rates increase), it collapses.

ponzi cycle works as long as asset prices are rising. But once the bubble is pricked, the debtor is left with declining asset values that preclude the rollover of their obligations.

ponzi speculation cycles are consequence of a fraud, hype, mania, and excessive growth in bank credit due to artificially low interest rates set by a central bank or fractional reserve banks

The scary reality is that the ""business cycle" is just one manifestation of our whole economic system as a Ponzi scheme

It is predicated on the notion that we can borrow today to fund our wants and needs, with the expectation that the future will pay off those debts

Like any good Ponzi scheme, we need to borrow from future payers just slowly enough to maintain the fiction of responsibility

When you abolish the Fed and the stock market, then the ponzi cycle no longer exists.

The Iron Curtain did not have ponzi cycles of depressions, recessions, or bubbles, since it abolished stock markets and interest rates (usury, the Fed)

In 1953, the year before Congress authorized the FHA to insure 30-year loans on existing homes, FHA’s average loan term was 21 years and conventional loans had a term of 15 years. Even as recently as 1992, 27% of home purchase loans had a term of 15- or 20-years.”

With the broad adoption of the 30-year loan by FHA in the late 1950s and early 1960s, foreclosure rates started to rise to concerning levels in the early 1960s.

Back in the 1950s, before the large-scale adoption of the 30-year loan, the median home price was about 1.2 times median income

There is no "private ownership" in capitalism-- at least not for the bottom 95%.

capitalism is private rentership.

the goyim rent their shelter from the bank (mortgage), management (HOA), and government (property taxes)

It wasn't normal to finance 95% of a homes value back then.
at the end of WWII, the average homeowner owned 95% of his home – he had mortgage debt equal to only 5% of it. Today, he owns only 10% of his home. (Is a person who owns only 10% of his house richer than one who owns the whole thing? We ask the question only because so many Americans seem to believe the answer is yes.)

also, starting the 1980s, Wall Street started to transform the functions and purposes of the two large mortgage corporations. Wall Street wanted a housing bubble, and Fannie and Freddie were transformed to become the major suppliers of funds to that bubble. The high prices of homes could only be made to stick if a sufficient volume of mortgages were created to finance the purchase of homes at those prices, including by people who couldn't afford them.

Once they gave the mortgage lending institution cash, the institution would make a new mortgage loan to a new consumer to purchase a home at a high price (this process does not include "jumbo" loans), and so forth.

Some Bloomberg headlines from the future
"fortune 500 CFO and his neurologist wife unable to afford 800sqft apartment"

"should you take out a 120 year mortgage: pros and cons"

"is 2.5 million USD enough for a 1 bedroom apartment?"

"30 year mortgages for home appliance: yes it exists and here's why it's a good thing"


Refresher time

1970- MEDIAN NEW price, $23k
census.gov/construction/nrs/pdf/uspriceann.pdf

1970- MEDIAN HH income, 9k
multpl.com/us-median-income/table/by-year

The long term historic price of a NEW house 2.5x annual income. Clearly, a used house is worth far less than a new house. The long term historic price of a USED house is

before the GI bill and the advent of mortgages, you paid cash for a house for the most part. Again, loans did exist, but nothing like this

in 1950 a house in LA cost $7,000. Inflation-adjusted, that should come to about $77,000 today. In 2018, though, the same LA home cost over $850,000 national average. And while there's wild variations between various markets, prices are extremely grossly inflated.

if mortgages (and immigration) was banned, homes in all US cities will go back to costing 1 X median income and less ($50k)

>professional trader

whats your youtube channel?

the globalists can do whatever the fuck they want, as long as the coordinated collapse is slow and the culling is stealth. you can have millions of homeless and still have a successful ponzi, as long as the ponzi runs on selling Fentanyl for the homeless to OD on.

There are no threats except the running out of food. The real economy is based on the supply of food and shelter to sustain a population, the financialized economy can exist on thin air and grow greater than the size of the sun.

the globalists know this, it's about keeping the sheep docile as they are herded to the cull...

the European Central Bank added to growth worries when its chief Mario Draghi hinted that interest rates would stay low for longer than previously anticipated, to stimulate growth and inflation.

And with central banks now leery of injecting further liquidity via QE, while ZIRP and NIRP no longer suffice to boost economies, it remains unclear just who will provide a lifeline to either Europe or the EM when the next recession and/or global financial crisis strikes, some time over the next 12-18 months.

IMF Issues Dire Warning – ‘Great Depression’ Ahead??

that phenomenon is called survivorship bias and you're an idiot for thinking you'll be one of the few

>The Iron Curtain did not have ponzi cycles of depressions, recessions, or bubbles
The Iron Curtain was arguably worse because their version of the ponzi scam could only be fueled by war since it increased the demand for more shit to be produced and most of the things produced in commie countries were things for war. Once there's no more war shit to make, the economy stagnates and so far the only known fix is to flip the economy into a free market.

Not true, desu. I am an user of the Iron Curtain.

Socialist systems do not generate fictitious capital (fake wealth aka wealth effect) like Capitalist systems do. So they do not have speculatory cycles. No bubbles, no recessions, no depressions.

Socialist economies are based entirely on production-- not speculation.

We produced things that US can only dream of. You heard of space industries? We went to space while US presidents were still pegging little beaners in the ass.

You heard of clean, efficient, extensive subways? We have them in all our cities, while you still cant maintain a dilapidated turd world NYC subway system


>inb4 no cars

Kamaz, founded 1969 world renowned Russian car brand from the Cold War period.
My parents owned several Ladas during the 80s and 90s. Western Yurop, not a commiestate.
Soviet cars were exported (and sold) in good number in the Western and northern Europe, where they had to hold their own against the world car industry.
en.wikipedia.org/wiki/LADA_4x4

Anyway, Cars are anti-social. It doesn't really fit in with the communist pro-social ideal. The communist ideal would be grand public transport infrastructure (subways, metros, trams, trolleys, lightrail, trains etc).

The Lada 4x4 was so good it's made TO THIS DAY in Hungary using the exact same design as they did in the 1980's

>Hurr durr commies never made anything good

Ok retard lada.ru/en/cars/4x4/bronto/about.html

Why can't capitalists build infrastructure?


We made light bulbs that lasted dozens of years, because they weren't subject to the planned obsolescence of capitalism among a host of other technologies that the western world deliberately avoided for nearly fifty years.

>still sending Iron Curtain Sputniks satellites
>still building Iron Curtain power plants throughout the world
>3D holography by Yurii Nikolayevich Denisyuk
>Artificial heart/lung/Head transplantation by Vladimir Demikhov
>rocket engine by Valentin Glushko
>Underwater welding by Konstantin Khrenov
>modern petroleum industry

modern austronautics, modern seismology, the helicopter(Sikorsky), Big Bang theory(Gamow) walkie-talkies(Magnuski),colour television(Zworkin),electric tram(Pirotsky),alternating current, radar, hydroelectric plant, cryogenic engineering, transistor, modern electric motor, remote control, neon lighting , wireless communication (Tesla), radio(Popov), long-range telephone(Pupin), crystalline science(Stranski), modern geochemistry(Vernadsky), rocket science(Korolev), pre-lumiere camera(Prosynski), incandescent bulb(Lodygin), transformers(Yablochov), lasers(Brasov and Prokhorov), LEDs(Losev and Holonyak), synthetic rubber(Lebedev), solar cells(Stolev), digital electronic
computing(Atanasoff/Atanasov), field recorders(Fidelski), contact lenses(Witcherle) modern education(Komensky), caterpillar tracks(Blinov), electrically-powered railway wagons(Pirotsky), Videotape recorder(Poniatov), petrol cracking(Shukhov), grain harvester(Vlasenko), modern anthropology(Malinowski), bullet proof vest(Zeglen), parachute(Kotelnikov),mine detector(Kosacki), space travel( Tsiolkovsky), lunar roving vehicle(Mieczysław Gregory Bekker), sound in films(Tykociner), radio(Popov), train air brakes(Bozic), conventionally usable plastic(Stepanovic), ballpoint pen(Penkala), supersonic photography(Salcher), dactyloscopy(Vucetic), the antibiotic azithromycin, the power block(Puratic),computer networking

>Marcel Klepač - maritime gyroscope compass, dynamo.

>Ralf Šarić - orbital engine
>Antonio Franjić Lucas - rotary oil drilling

This is but a portion of the economic power of Iron Curtainians

Keep posting nuggets OP. I appreciate the wisdom of an OG

from January 2000 to July 2006, starting with Bush NWO leader's Housing Bubble, home prices surged 900%

Avg price of house around 1998 before globalisation and free-trade went full swing
>$180k in NYC (boros)
>$150k in Bay Area
>$150k in LA
>$120k in DC
>$140k in Sydney
>$120k in Melbourne
>$140k in Toronto
>$190k in Vancouver
>£70k in London


Avg price of house after 2004 massive free-trade/open-borders
>$800k in NYC (boros)
>$1m in Bay Area
>$600k in LA
>$500k in DC
>$900k in Sydney
>$700k in Melbourne
>$600k in Toronto
>$1m in Vancouver
>£400k in London
---------------------------------------------------------
before free trade:
>domestic production of goods
>goods were affordable and of high quality
>lowest cost of living
>affordable housing (house costs only 2 times the annual salary)
>90% white

after free trade:
>homeless/opiod/suicide epidemic/white genocide
>unemployment
>highest cost of living
>unaffordable housing (10-20 times the annual salary)
>plummeting life expectance
>shit quality products that kill you
>millions of illegal shitskin locusts invading and killing whites

sorry for brainlet question but how are interest rates and stocks related?

But how do you deal with the fact that the refrigerators leaked? And why did the Iron Curtain collapse if things worked so well?

slatestarcodex.com/2014/09/24/book-review-red-plenty/

interest rates control the stock market. when interest rates are high, corporations put money in bonds, savings and non risky assets. in the 90s, interest rates were around 10%, you could get 10k per yr on $100k savings account. interest rates were around 18% in the early 80s. when interest rates are higher, ROI is high throughout business and housing assets. you buy a house in the 90s that was 1X rent roll, you bought a business that was 1X yearly income.


when interest rates decrease, corporations/hedge funds/institutional investors borrow trillions in cheap cash at low interest and buy up stocks that are guaranteed to give higher returns than the interest they pay. as long as interest rates remain low, corporations are rewarded to buyback stocks and hyperinflate on the market. this has negative impact on the economy since the money is used to buyback their own stocks instead of investing, but the value of their stocks keep going up aslong as interest remains low


usually low interest rates is what the globalist central bank uses to stimulate and anemic/dead economy to reward the rich. The Federal Reserve has provided the rock-bottom interest rates that have pushed asset markets into uncharted territory.

high interest rates reward savers, while still allowing corporate speculators to continue to gamble in ponzis

low interest rates punishes the savers and devalues money, forcing goyim into riskier asset classes

ultra-low interest rates fuel cheap borrowing and therefore artificially boosting stocks/housing with no real economic progress

lower, and lower interest rates that has created massive rewards to speculation but not real investments

Low interest rates reflect the depressed state of the economy, and they can’t last.

Thanks to outsourcing industries to Asia and Latin shitholes, the business sector finally collapsed in year 2000. Profits fell more sharply than they had anytime since the Great Depression. Business investment, too, suffered a monumental decline. To prop up a non-existent economy, Neoliberal Greenspan created the tech bubble by keeping interests rates artificially low. The tech bubble ponzi burst and Greenspan rerouted low interest rates to inflate a housing bubble with the aid of mass migration.

With easy credit, the consumer maintained their confidence and kept spending lavishly, which rescued not only the US economy…but the entire world economy.

And now, in America’s credit-led economy, he must continue to play the hero…spending money he does not have…or all is lost.

low interest rates to prevent economy from collapsing the housing bubble bursting;

The wealthy 1% plunder markets and this is a result.

The wealthy usually drive up stock prices speculating in stock markets, but when there's no money to be made there, they speculate currency markets driving up prices there. When they've depleted all the values in currency, they plunder the housing market until prices are high and there's no value left.

The only solution is raising interest rates so vampire gloablists can suck the bond markets dry.

my General Electric fridge still leaks. US has some leaky fridges m8. I am jelly of Iron Curtainians. At least they had also free freezers by putting their food outside the window in a special container.

i am a country salesman. i am offering you two countries to choose from:

Option A:
>expensive (shit quality) housing at risk of bubbles
>expensive (poojeet quality) medical care
>expensive (yiddish quality) education
>unstable jobs that are hard to come by where you will be replaced by poojeet and pablo
>retirement at 75 that barely covers costs
>unstable speculative-bubble based economy
>houses that you never own cos mortgage/property taxes
>anti-family social system that produces broken families and declining population
>bullshit ponzi pyramid scheme economy producing worthless shit and welfare gigs to the privileged minorities
>open immigration to replace you
>ritual sacrifice and abramic moloch worshipping
>rampant crime and high murder rates

Option B:
>free quality housing
>free quality education
>free quality medical care
>guaranteed jobs
>guaranteed pension at 50 that covers all costs and allows you to live comfortably
>traditional family-oriented society that promotes family and reproduction
>closed immigration (Iron Curtain) not allowing foreigners to replace you
>abolish moloch worshipping and ritual sacrifice
>focusing society on curing all diseases and space colonization

so which will you move to?

imagine having guaranteed interest rate of 20%, do you need stocks? fuck no! burn wall street down!

now imagine interest at 1%, the corporations borrow that shit by the trillions and use it all to drive up the cost of their own stocks. meanwhile, goyim get punished for saving money and not spending it.

Finance and “Fictitious Capital”

Banks make a business out of debt, specializing in borrowing and lending money for profit. The rise of capitalism made that business central to agriculture, industry, and commerce, which came to depend on the currency and credit that banks controlled. That is why struggles over capitalism have so often focused on the “money power” of bankers and other professional financiers, who were the first to be called (by their critics) “capitalists.” Rarely has that power loomed larger than in the past twenty-five years.

Debt has become a big business in its own right, making finance arguably the leading “industry” of twenty-first-century capitalism. As the overall level of debt in the U.S. has grown much faster than the production of commodities since the 1970’s, bankers and bondholders have gained unprecedented economic power. ll but the richest households have struggled to make up for stagnant or declining real incomes by racking up credit cards, car loans, student loans, and home loans.

This is a brilliant thread. Thank you OP for starting this topic and other anons for your contribution. More and more people should understand the basis of economics

Which one is America? I move to the one that is America.

USA USA USA

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As usual, the Fed's "solution" to the 2001-02 downturn was to open the credit spigots and lower interest rates, even though liquidity and interest rates weren't what was wrong with the economy.

This monomaniacal policy inflated a monumental housing bubble in 2004-2008, and once again loosened regulations (liar loans, no-doc loans, 100% mortgages, fraudulent mortgage backed securities, etc.) plus low interest rates and abundant Fed liquidity created a bubble that was guaranteed to implode with devastating consequences.

No longer content with blowing one credit-speculative bubble at a time, central bankers coordinated their efforts in 2009-2018 and inflated the Everything Bubble. But the Everything Bubble didn't resolve or even address the multiple structural imbalances in the U.S. and global economies; it merely papered them over with a triple-whammy credit-speculative orgy of unprecedented enormity.

Unlike the 1970s, 80s, 90s and 2000s, wages (earned income) did not rise for the bottom 90% during the Central Bank Everything Bubble 2009-2018: it isn't just the stock buybacks and other financier speculations that are funded by debt--a great deal of consumption that was once paid out of earnings / revenues is now paid by debt: higher education, paving of roads, auto repairs, etc.

We're way overdue for a sell-everything recession, one that the Fed will only make worse by pursuing its usual policies of lowering interest rates and goosing easy money. The structural
problems are now acute, and giving more free money to financiers and politically powerful corporations isn't going to fix what's broken in the U.S. economy.

The preoccupation came to light in 2010 when Ben Bernanke added the “third mandate” to the Fed – the creation of the “wealth effect.”

“This approach eased financial conditions in the past and, so far, looks to be effective again. Stock prices rose and long-term interest rates fell when investors began to anticipate this additional action. Easier financial conditions will promote economic growth. For example, lower mortgage rates will make housing more affordable and allow more homeowners to refinance. Lower corporate bond rates will encourage investment. And higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion.”

– Ben Bernanke, Washington Post Op-Ed, November, 2010.

federalreserve.gov/newsevents/other/o_bernanke20101105a.htm

As he noted, the Fed specifically targeted asset prices to boost consumer confidence
Given that consumption makes up roughly 70% of economic growth in the U.S

while lower interest rates may help spur economic growth in the short-term, the growth has come from an increasing level of debt accumulation. Therefore, the economy cannot withstand a reversal of those rates

in 2009, the Fed went to work to rescue the economy with a $915 billion balance sheet and Fed Funds at 4.2%. Today, that balance sheet remains above $4 trillion and rates are at 2.5%.

Low interest rates for consumers cause deficit spending, buying shit on credit and getting otherwise crappy investments like overpriced housing and depreciating trucks that they can't afford.

Low interest rates for companies cause them to borrow funds and enter marginally profitable ventures that they otherwise would not take part in.

Low interest rates thus cause an expansion of the credit cycle; consumers spend more because they can on credit. Businesses expand to meet this demand but also on credit. This double-sided expansion causes the price of the underlying asset (stocks) to go up as companies become more profitable.

Unfortunately, this cycle works in reverse once interest rates start going up. Consumers can't borrow like they use to so demand falls. Businesses don't see opportunity due to a fall in demand, and even if they have opportunity they can't borrow funds to expand due to higher interest. Companies thus cut back on employees in "non-profitable" ventures which only existed during the time of cheap credit.

Cut back employees are now unemployed and can't spend, and can't borrow. Demand falls once again. And the cycle repeats until a new equilibrium is established.

The above is the credit cycle in a nutshell.

Home Prices are no longer based on local incomes or interest rates. It’s mostly external forces (locust invasion). If those external forces stop, then something will have to give.

The Federal Reserve cue card:

Step 1: Create fake money stealing value from everyone

Step 2: Loan the fake money to people with interest

Step 3: Take people’s stuff when they can’t repay the debt

Step 4: Get government to enforce our fraud

Step 5: Plunder humanity

It wasn’t supposed to be this way. Zero per cent interest rates and trillions of dollars of cash injections were supposed to be a temporary fix, a massive jolt to the heart of capitalism to revive the global economy. The problem is that no-one has figured out how to remove the medicine, how to unwind the stimulus without causing a major downturn and economic chaos

We’ve been in an irrational market for 2 decades.
the wealthy special interests in the US will own everything. What they’ve been doing during this “recovery” is setting all the peons up for another massive scalping. They extended mass credit to get the sheeple up to their necks in debt again, and once all the peons are underwater, the wealthy will, once again, take back all those assets and distribute them to their cronies for pennies on the dollar

Recessions are when the money finds its way back to its rightful owners

Why don't we just ban money lending without going full commie?

Stock market bubbles, housing bubbles, Wall Street bailouts, and other entitlement programs plus interest on the debt

the U.S. consumer makes up approximately two-thirds of the U.S. economy, these are signs of potential trouble ahead.

Another difference from the period before the Great Recession is that the amount of corporate debt has increased substantially, doubling from approximately $30 trillion to now more than $60 trillion

The corporate debt amounts represent approximately 90 percent of global GDP. In the U.S., the share of corporate debt as a percentage of GDP has exceeded the levels in 2008. This growth in corporate debt has been increasingly funded by unregulated financial institutions. Moreover, the corporate debt has been increasingly used to repurchase shares instead of investing in research and development or fixed assets, both of which would have had a more positive impact on the economy as a whole when compared to debt repurchase plans.

because you dont want to end up like Gaddafi... capitalism is about keeping the goyim in in the hamster wheel

Guys our economy is completely hollow. It's based on artificially inflating asset prices, like housing so that boomers have 'wealth' they can use to keep consuming. This is why there is a housing bubble because of DELIBERATE economic policy to allow boomers to consume when they did NOTHING.

While our economy is based on this we do not increase real productivity at all, in fact because there have been good returns on investment into SHIT like housing or construction that has pulled it away from actually productive sectors.

Education has been destroyed and is a way to rip off vile sexual degenerates via student loans and to get even more shitskins to effectively pay for citizenship.

China keeps printing money to reduce the value of their currency, then buy up assets in other countries, like our housing, farms and public goods. Neither party is stopping them from doing this.

It's crashing next year probably. All of this was intentional, our government knew exactly what it was doing and the same thing has happened in the US, UK and Canada.

Honestly I'm hoping for lawlessness so I can take all my rage out on boomers/homosexuals/shitskins/jews/bankers/politicians etc. there are many scores which need to be settled. Yes I've read Siege.

Real economy vs Virtual Economy (Debt-based ponzi scheme)

i.4pcdn.org/pol/1538320109602.jpg

government-directed financialization replaced government-directed industrialization, after the government started offshoring White industries to Aisa

Since offshoring White industries to Asia, the majority of bank credit in White economies has gone into buying real estate and financial assets, like stocks, instead of going to businesses that create new goods and services (non-financial services, that is)

Banking systems in post-industrialised, service economies have shifted away from their textbook role of providing working capital and investment funds to businesses. They are now primarily lent against pre-existing, unproductive assets, in particular domestic real estate assets

financial sector deregulation in White economies is significantly associated with a lower share of bank loans going to finance the production of goods and services (non-financial services)

debt shifted toward financing the purchase of pre-existing assets like real estate and stocks, and away from financing businesses that produce goods and services.

Credit flowing into goods and service businesses typically leads to investments that lead to increased productivity and wage growth. Credit flowing into real estate and financial assets does not lead to increased productivity in the real economy

The shift toward relatively less credit going toward productive businesses helps explain slower wage growth and increased income inequality. The shift toward relatively more loans going toward pre-existing real estate and financial assets helps explain their booms and busts, the depth of the Great Recession and the increase in income inequality

The Debt Shift and Demographic Replacement Theory says the removal of immigration laws and removal of central bank credit guidance policies in the 1980s and 1990s led to a large shift in lending foreign newcomers money toward pre-existing assets which lead to a large shift in debt toward real estate and financial asset purchases. The shift in debt had impacts on real estate and financial asset prices, price instability, expenditures on goods and services, labor productivity, immigration, demographic replacement, wage growth, income inequality and was the root cause of the Great Financial Crisis.


the globalists sent White industries to Asia and replaced the real economy with a financialised ponzi scheme dependant on endless immigration to prop up the pyramid scam.

In the globalist financialised economy, homes are now treated as a speculative asset, and propped up by packing an endless flood of immigrants into rooms, rather than simply as places to live for White families.

In an era of low business profitability for White countries who offshored everything to Asia, housing is often the easiest and safest bet for globalists looking to expand their wealth, as property prices seem almost guaranteed to rise at a higher pace than interest rates, which have remained historically low throughout the past decade.

Correspondingly, banks love lending money against houses. Both in the decades leading up to and following the crash, around half of bank lending flowed into property.

Ultimately, houses are worth however much banks are willing to lend. Banks, which create new money simply by lending, are essentially unconstrained in the amount of money and shitskins they can conjure to bid up property prices.


globalists are reliant on ever-rising house prices, otherwise they risk the collapse of their immigation ponzi scheme.

My bullshit detector was off the charts halfway through your post fren

Yes, it's pretty bad now. We're much closer to the Gilded Age right before the Great Depression than in any point in history before that.

Money lending done in moderation is good. The reason there's so much produce in your supermarket is because farmers were able to borrow money to expand their farms. And transportation companies were able to borrow funds to expand their delivery fleets. And so on and so forth.

Communist systems, as were implemented in the 20th century, suffered from 'node-failure'. Networks of systems derive value by their complexity, and complexity derives value from a) the number of participants in the system, or "nodes"' and b) the amount of inter-connectivity between the nodes. In communist society, there may be a large amount of participants but the complexity of the system is disgustingly low. Without an individual profit motive, market participants do not interact with one another and a result there is no meaningful value or complexity being built. One brand of car, one brand of apartment buildings, one brand of chicken farms. All of these decisions are simply things decided by a small subject of complexity within the communist state; the central planners of the communist party.

That is not to say that communism is doomed for failure; it simply did not have the technology necessary to be successful when it was first implemented. One of the largest and least discussed benefits of cryptocurrency and distributed ledger technology is that it remedies the inter-connectivity problem of old-communism. An entire society connected with a DAG form of government is both able to vote on efficient resource allocation and at the same time branch off into a multitude of 'central planning' silos. Instead of having 1 brand of cars you could have however many brands of cars produced, as there could be multiple branching governments set up on the blockchain, each with their own opinion on what should be produced.

Fuck off commie shill

Travis or Arthur?

Are you sure you personally are living better than a europoor? Hows your current lifestyle and is there progress in the horizon for you? Think about why youre here gambling on crypto currency. You know very well this is it. Its either crypto or nothing. If crypto fails to make you rich or progress in life, the real world in the usa offers nothing. And this is scary as fuck. Not only will most people become peniless and slaves to meager wages but would also lose their heritage. Atleast europe still has ethnostates like finland, norway, denmark, switzerland, austria. The usa is now a different type pf ghetto that citizens cant escape. Youll be double taxed if you flee and work elsewhere. Its fucked up mate.

Shut up zoomer

>lada.ru/en/cars/4x4/bronto/about.html
LMAO ok... 83hp. Top speed of 137km. Sad this is the best of 1980s soviet cars. We had cars with 500+hp back in the 60s.

>Option B:
>>free quality housing
You still don't own your own home. Govt. Can take it away as easily as they can give it to you. Also, it will end up being a run down POS in few decades because no ownership=people won't take care of it.
>>free quality education
That's cool.
>>free quality medical care
My experience with free healthcare in Canada was that there's a long ass wait time in months to see a doctor and docs do not give a shit because they are overworked.
>>guaranteed jobs
What if I don't want to work? Fuck going to Gulag.
>>guaranteed pension at 50 that covers all costs and allows you to live comfortably
That's cool but I want to retire at 30.
>>traditional family-oriented society that promotes family and reproduction
Will the government pay for me and my boyfriend to have a surrogate mother so we can have our own kid?
>>closed immigration (Iron Curtain) not allowing foreigners to replace you
Sounds like a boring society with no culture.
>>abolish moloch worshipping and ritual sacrifice
huh?
>>focusing society on curing all diseases and space colonization
Why though? Space is empty and boring.

good questions bro
>or progress in life
instead of actually living life people choose to spend it solely by grinding money and material stuff, which is like 1% of what life can afford
very sad to watch how far greed has come
actually as time goes I'm getting more comfy with Luka Magnotta apocalipse scenario of 2025 with bitcoin as new world currency which will end up as nuclear war to solve overpopulation problem

all you are sons of nature and you completely forgot your roots. buy land, learn to build a house, grow plants, make friends and have joy. you will need this very soon. also save a collection of paper books, you will have to do something when internet will shut down

Fuck off, Jew