Central Bank Asset Growth

[chuckChuck]

Obviously it’s working. Look at Chucks response. If u can’t see this is what’s happened your the problem. Next you gonna tell us we are being racist against dum people. We can’t fix problems if u don’t admit there is one.

Your words not mine. Try to stick to the issue.

[macdon02]

Japan and ECB have been using stimulus as well and look at how well that has worked. BoJ is the only buyer of Govt debt in Japan. Now ECB is talking going digital, so the decision is made. They wrecked their bond markets. Word on the street is everyone but the Fed is going to electronic currency, barring a dem win, elimination of paper currency in Jan 21. This means Canada will as well. Kiss your physical loonies goodbye and we likely see negative rates with no ability for a bank run. We are past the tipping point on ever believing govt will pay back principal. Look for talk of "perpetual bonds" basically a default. The ability to save wealth will be recreated in a shift from public to private. It's a massive mess created by idealists.

[furrowtickler]

Errol has been warning of this for years ... he must be a flatearther conspiracy theorist as well

[furrowtickler]

So the US has been using mega amounts of stimulus for years and their debt to GDP ratio prior to Covid was going higher, while Canada's was declining.

So stimulus and support in canada is bad but in the US its okay?

I don't see any any Conservative premiers saying they want less help from the Feds! Hahah

We live in Canada , not the US .... for the thousandth time

[Austrian Economics]

Japan and ECB have been using stimulus as well and look at how well that has worked. BoJ is the only buyer of Govt debt in Japan. Now ECB is talking going digital, so the decision is made. They wrecked their bond markets. Word on the street is everyone but the Fed is going to electronic currency, barring a dem win, elimination of paper currency in Jan 21. This means Canada will as well. Kiss your physical loonies goodbye and we likely see negative rates with no ability for a bank run. We are past the tipping point on ever believing govt will pay back principal. Look for talk of "perpetual bonds" basically a default. The ability to save wealth will be recreated in a shift from public to private. It's a massive mess created by idealists.

I don't think that a move to a digital currency really affects much, and I doubt that the central banks really care if you use paper money or not. Any business beyond a mom and pop enterprise cannot function transacting solely in cash.

I definitely agree that negative rates are on the way. As a fiat currency collapses under the dead weight of debt that cannot be repaid, rates have to go lower and lower just to provide relief for debtors. Whether the "solution" is perpetual bonds or MMT, these ideas are just a way to put lipstick on the pig of widespread default.

[AlbertaFarmer5]

I don't think that a move to a digital currency really affects much, and I doubt that the central banks really care if you use paper money or not. Any business beyond a mom and pop enterprise cannot function transacting solely in cash.

I definitely agree that negative rates are on the way. As a fiat currency collapses under the dead weight of debt that cannot be repaid, rates have to go lower and lower just to provide relief for debtors. Whether the "solution" is perpetual bonds or MMT, these ideas are just a way to put lipstick on the pig of widespread default.

So, can there be such a thing as a painless default by either of these means?

By painless, I mean not resulting in mass chaos, obviously it is not painless to anyone trying to be financially responsible.

[macdon02]

I don't think that a move to a digital currency really affects much, and I doubt that the central banks really care if you use paper money or not. Any business beyond a mom and pop enterprise cannot function transacting solely in cash.

I definitely agree that negative rates are on the way. As a fiat currency collapses under the dead weight of debt that cannot be repaid, rates have to go lower and lower just to provide relief for debtors. Whether the "solution" is perpetual bonds or MMT, these ideas are just a way to put lipstick on the pig of widespread default.

Agree it's not a huge deal but how do you store wealth in a negative rate environment? You sure don't want "dollars" that the bank strips a percentage of, monthly.

[macdon02]

The entire paradox of negative rates means the boomer generation of farmers better rethink "having an auction sale" as a means of getting out, imo. Now we need a safe place to store that asset, previously bonds. Things are going to be drastically different than what most had planned. I can't see any scenario unfolding that doesn't drive land prices higher yet. Cheap money, depreciating currency which is "taxed for holding" plus in case you guys haven't noticed, wheat and soybean prices are breaking out on a long term trend.

[macdon02]

There's a 15 month lag correlation in gold/ corn prices. Shit is gonna get real and in my opinion it's entirely droughtbased. Forward pricing next year's crop in this environment can be fatal

[burnt]

So, can there be such a thing as a painless default by either of these means?

By painless, I mean not resulting in mass chaos, obviously it is not painless to anyone trying to be financially responsible.

Are we correct in assuming that preventing mass default is the objective?

Remember, we need to adopt the new way of thinking.

And it ain't the old way of thinking or anything near it.

"From each according to his ability, to each according to his need."

Highly doubtful that it will be voluntary.

Waiting for the answer - what is a safe haven for assets?

[jazz]

The entire paradox of negative rates means the boomer generation of farmers better rethink "having an auction sale" as a means of getting out,

land or gold macdon, there is really no place else to be. Both are as store of wealth but only one would benefit from a negative rate environment IMO.

Effective negative rates are already here. bank rates less CPI is already negative.

[jazz]

Errol has been warning of this for years ... he must be a flatearther conspiracy theorist as well

Other nations and CBs have balance sheets that are manageable still. As you can see, none of them went parabolic before even in the great recession 10 yrs ago.

What Canada has done here is just unbelievable.

Canada will be the first one to feel the reckoning.