• 2 hours Newmont Mining Teases Investors With Special Dividend
  • 5 hours Central Banks Double Down On Gold
  • 7 hours Don't Write Off Cryptocurrencies Just Yet
  • 23 hours Trade In Counterfeit Goods Hits Half A Trillion Dollars
  • 1 day Tesla Struggles To Compete In European Market
  • 2 days China: The New King Of Caviar
  • 2 days Gold Mid-Tiers Rally On Fresh Earnings Reports
  • 3 days Can The British Pound Overcome Brexit?
  • 3 days Is A Gold Breakout Near?
  • 4 days Federal Reserve Downgrades U.S. Growth And Cuts Rate Hikes
  • 4 days Disney Beats Out Comcast In $71.3B Mega-Merger
  • 4 days The Feds Continue To Prop Up Equities Markets
  • 4 days Bejing's Sway In South China Sea Is Fading
  • 5 days Saudis Eye Billions As Stocks Get Emerging Market Boost
  • 5 days Airbnb In Acquisition Mode Ahead Of IPO
  • 5 days Gold Hangs At $1,300 Ahead Of Fed Meeting
  • 5 days Champagne Sales Slow As European Economic Worries Grow Louder
  • 6 days Putin Signs “Digital Iron Curtain” Into Law
  • 6 days Russian Metals Magnate Sues U.S. Over Sanctions
  • 6 days Tesla Looks To Jump Into Indian Market
Tesla Struggles To Compete In European Market

Tesla Struggles To Compete In European Market

Tesla continues to catch the…

Trade In Counterfeit Goods Hits Half A Trillion Dollars

Trade In Counterfeit Goods Hits Half A Trillion Dollars

The counterfeit market has breached…

Gordon Long

Gordon Long

Mr. Long is a former senior group executive with IBM & Motorola, a principle in a high tech public start-up and founder of a private…

Contact Author

John Rubino

John Rubino

John Rubino edits DollarCollapse.com and has authored or co-authored five books, including The Money Bubble: What To Do Before It Pops, Clean Money: Picking Winners…

Contact Author

  1. Home
  2. Markets
  3. Other

Is Helicopter Money, Nirp and Collateral Guarantees in Our Future?

Published 10-17-15
30 Minute Video

John Rubino and Gordon T Long discuss the strong possibility of of a sequence of "QE4 for the People", Helicopter Money, NIRP and Collateral Guarantees now being in our economic future as the US and Global Economies rapidly slow. The evidence is clear for all to see, with little debate, except in the hallowed halls of the US Federal Reserve!

Gordon T Long argues that there are three cycles that must be closely monitored. Of the three, the Credit Cycle always leads and it has now turned. He believes the evidence shows that the Business Cycle has also turned and that the Rate Cycle has been disconnected from reality since it skipped a "Cyclical Beat" due to Central Bank Monetary Malpractice.

John Rubino agrees but believes no on should be surprised that the Business Cycle has turned and a recession is a real possibility after experiencing over 6 years of an apparent cyclical recovery. What is particularly ominous and unique about this slowdown he feels is that it is arriving during a period when we have:

1- HISTORIC LOW INTEREST RATES: Little conventional Monetary Policy available to be a counter force mounting recessionary momentum.

2-CHINA SLOWING DRAMATICALLY: China's massive build out and credit expansion since the 2008 Financial Crisis has powered Emerging & Frontier Economies. Now the Chinese economic engine is sputtering and by some measures is not growing at all,

2- A GLOBAL COMMODITY CRASH: We are in the midst of a major global commodity crash which is impacting corporate earnings, sovereign current accounts and employment,

3- GROWING WAGE PRESSURES IN THE US: Years of corporate profit increases without wage increases has left many corporations under fire and earnings pressures, most evidently seen with labor issues at WalMart,

4- REGIONAL PROBLEMS IN CHINA, JAPAN AND THE EU: Leaving no economy bright light for reversing the US Economic Slowdown.

"How do you have an equity bull market and a recovery in economic growth in general at a time when the main engine for growth (China) is sputtering and corporate profits (in the US in particular) are starting to turn down HARD? The answer is you don't! You can't grow under those circumstances."


Canary in The Coal Mine

The dramatic collapse in HY (High Yield) Bonds is signaling serious problems for the continuation of cheap corporate funding. It also has the potential for contagion as liquidity is a problem when large amounts have been bid up on price due to the explosion is the use of ETF's to buy HY bonds.


Bottom Line

As the UK Guardian newspaper recently declared:

"The world needs inventive responses. It needs a bigger reinvigorated IMF whose constitution should reflect the global balance of economy power and that can rescue the emerging markets. It needs western governments to launch massive economic stimulus centered on infrastructure spending. It needs new smart money policies that will allow negative interest rates."

This is exactly what is going to sell political in the coming year!

The bottom line is the central bankers of the world are now left with few choices and none are traditional approaches and the political pressures on them have almost preordained the policies of: "QE4 for the People", Helicopter Money, NIRP and Collateral Guarantees to keep markets levitated.

"There is no political alternative but to 'double down' on existing policy approaches. The only alternative is austerity and we witnessed in one country after another in the EU what happens when this is attempted! ..... the only thing that will sell now is 'we are going to give you something'!"

.... there is much, much more in this 30 minute video discussion.

 

Back to homepage

Leave a comment

Leave a comment