Interest rate cut

[ColevilleH2S]

It seems no one at the Bank of Canada reads Agriville. They cut the interest rate by a 1/4% this morning.

[jake550]

I can't see how that's a good thing. Unbelievable.

[rkaiser]

Continuing to increase debt is the only way to support a system based on debt.

Borrow more money or start a war to cause governments to borrow more money to blow shit up and then rebuild it.

All the while printing the shit out of thin air.

[Hopperbin]

I can see why your banker would be nervous rkaiser. Now we will see if the 1/4 rate drop will actually result in a rate drop for business and consumer. If it does not then what is the purposeof it? Will investors flock more to farmland now?

[cottonpicken]

The banking system is over leveraged,if asset values drop to much its toast(inevitable?),then canada gets its own round of qe,europe gets it tomorrow.

[rkaiser]

Nervous Hopper? They don't really like talking with me, nor do their lawyers. To scared of truth that will make their jobs disappear.

Humans are truly able to get along and be compassionate; very few corporations can even entertain those thoughts. Banks are corporations, governments are corporations, and even old Hopper is a corporation if he refers to his full name in the capital letters on his birth certificate.

But the banks know they are safe due to the law that protects them from everything in the end. Cause these laws were created by the corporations, for the corporations. For now.

[rkaiser]

Who do you think will buy the bonds in the EU if QE kicks in Cotton. Only ones left with money are the ones who stole it from the American QE. But the prospect of a real war instead of these pea shooter deals will shake loose the cash.

Does everyone on agriville hate the Islamic fundamentalists enough to kick this up yet?...... What will it take. Another shooting at the parliament buildings for Christ sake.

[cottonpicken]

Qe is essentially 2 things,stabilizing banks and government debt and deficits which if they didn't do the economy would sink into the abyss.

The central bank simply puts it on its own balance sheet.The banks are over leveraged,they pretty much ignored the bassel treaties,the us recapped,europe did not,some are out to 40:1,you also need to look at the banking system size in relation to the host countries gdp,non of that work was even done or thought about till 08,Reinhart and rogoff never even knew.

Europe is obviously a different story,unelected officials,a whole bunch of nation states sharing a common currency.Typically when a country hits the wall they restructure,currency collapses,then they work their way out,austerity is the consequence,imf steps in helps with balance of payment etc,etc pretty standard playbook.But now that option is off the table for someone like greece.In the current frame work they are what is called joint and severe liability.Typically this happens to smaller countries around the 100% debt/gdp mark.The entire western world is well past that now.

So tomorrow its the ecb that will start buying sovereign bonds,supposedly corporate to,and they will have to get the bad debt off a bunch of banks balance sheets also.

If this sounds like a big confusing mess,it is.

The scope,scale and structure of what is about to happen will be interesting and considering what the swiss just did it could be interesting.

[cottonpicken]

For got to add your bang on about war.

[Hopperbin]

Hmmm bought bmo this morning. Div 4.2 percent. One quarter of it to start jan 29. Dont know of a time it was a bad time to buy a canadian bank. Time will tell. Looks now like banks will not be adjusting rates. Not sure why jump so fast to subsidize the banks when their stocks are doing great.

[fjlip]

Because "everything is a Rich Man's trick", just another example...