Uncle Sam to Spend Like a Drunken Sailor as Debt Ceiling is Raised.

in #dtube5 years ago (edited)


In this report, I cover the early market action from London on Tuesday, July 23rd, 2019. I look briefly at the precious metals, the stock market, the dollar, the bond market and the price of WTI and Brent crude oil.

Today I start my report by looking at an opinion piece by a BlackRock analyst in the Financial Times. Mr Rieder says that the ECB or European Central Bank should start printing money out of thin air in order to buy eurozone equities. My argument is that this strategy is sophistry at its best and that the only way the EU economy will improve is for governments to shrink, regulations to be cut and once interest rates are allowed to reflect a non-artifiacial level. If money printing worked Zimbabwe would be the richest country in the world.

We have also seen that the Trump administration and Congress have come to an agreement to extend the U.S. debt ceiling for another two years. So with the budget deficit at present running around 5% of GDP, it looks like Uncle Sam will continue to spend like a drunken sailor.

My conclusion is that the fiat dollar or the Federal Reserve Note will continue to be debauched by the insidious process of inflation and that the Federal Reserve, the President and Congress are all playing the same game of borrowing and spending like there is no tomorrow.

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Debt ceiling, they have no intention of ever trying to pay it back why can’t people see this? Cheers mike

You are right!

Debt ceiling,which they keep raising time and time again, is just a nice term that conceals the true meaning - trillions of borrowed money of which they can just about manage to pay only the interest on.

Why can't people see this? Well, the politicians are adept at explaining this away with their political disguised jargon.

BOJ buys 70% of Japanese ETF to help banks. But there's more. Nomura which is the biggest distributer of ETF offered nice pay jobs for the retired governors of BOJ or high rank government officials. Maybe Nomura is mimicing Goldman sachs or City group.

Nomura is a big power in Japan. I recommend the book The House of Nomura by Robert Alletzhauser.

The book was written accurately and objectively by Alletzhauser , but Nomura sued him.

Debt ceiling is like that away team crew in red shirt, broken on almost every encounter.

Thanks again, Maneco64.