o7
right but let me add that we will need something that it is tied to for a transitory period. The ultimate end result is your last statement.
you have nailed it.
PBOC Cuts Interest Rate for One Year Loans to Support Banks-makes a cash injection
Central bank withdrew a net 700 billion yuan from market. Economists forecast loan prime rate to drop on Feb. 20. China’s central bank provided medium-term funding to commercial lenders and cut the interest rate it charges for the money, a move widely anticipated by analysts to cushion the economy from the virus epidemic.
The People’s Bank of China offered 200 billion yuan ($29 billion) of one-year medium-term loans on Monday. The rate was lowered by 10 basis points to 3.15%, the lowest since 2017. The central bank also added 100 billion yuan of funds via 7-day reverse repurchase agreements, resulting in a net 700 billion yuan withdrawal of money from markets as some 1 trillion yuan of reverse repos matured on Monday.
The rate reduction is “in line with expectations, while the injection amount is relatively small as interbank funding is sufficient after the new year,” said Zhou Guannan, an analyst at Huachuang Securities Co. in Beijing. Zhou expects additional MLF funding to be supplied in March. Since the outbreak of the coronavirus worsened in late January, China’s central bank and government have announced small rate cuts, early bond sales, and various other targeted measures to calm financial markets and support companies. So far, there’s not been a massive increase in stimulus, although that may change if and when the coronavirus is brought under control.
Monday’s rate cut is likely to be matched by a similar reduction in the loan prime rate, which is the basis for pricing corporate and household loans. A Bloomberg survey showed economists expect the rate for 1-year loans to fall by 10 basis points when it’s announced on Feb. 20. Futures on China’s 10-year government bonds reversed gains after the operation, falling as much as 0.14%. The yield on sovereign notes due in a decade rose 1 basis point to 2.87%, the highest level this month. China’s CSI 300 Index recouped all of its losses since trading resumed after the Lunar New Year break.
https://www.bloomberg.com//news/articles/2020-02-17/china-makes-cash-injection-to-counter-maturity-virus-fears
>My dream is usury-free, but who know about that yet.
I think that may be a bit off in the future but I absolutely agree-there is no need for a money supply tied to anything that will and can be manipulated. That is just human nature and no matter the outcome or system we eventaully adopt someone will always try to cheat, lie and steal.
The other part of this re gold is the first part of your OP…the unknown levels of inventory: in-ground (hidden for a very long) manufactured and off-planet. My belief is that gold is very abundant , and has been for a very long time. The system was engaged in producing the illusion of scarcity-for it's own benefit. I can see Ag being used later on but again it is still has this issue of scarcity implied or not. It's complicated and I do nto envy POTUS and the crew one bit.
not what they are saying. If the system we ultimately use has fungibility across the board this really is a built in trust factor that is not reliant on individuals/institutions to determine-this is a large part of the problem we are in now.
It's not going to be easy on the scale it needs to habben in but it needs to be this way.
that result can habben to anyone at any time as there are no guarantees. Define what a bad year is….
Do you know how much that interest is anon?
and the real issue with currency now is a lack of fungibility. As to say there is always too much value extracted from the differences in values between them. The global currency mkt is $6t of turnover/flow each and every day.
I don't disagree with any of that however it's not a pragmatic solution to what we have now. Both of you are correct but on opposite sides of the spectrums. There is knowledge in both sides. The solution is something that does not strip away the structure that we have because are some good things about it-not much but it becomes an issue of how bad the pain is in ripping off the band-aid. It's going to hurt and the end result should be one that hurts us less because we were the ones who were taken advantage of by it-and 90% of the people still have no idea about it. No easy answers.
I actually agree with with you on the last part. Paper is what got us in this mess and it will not get us out. The real fools are the ones who did just that, the ETF's..don't own a damn thing.
Merits of both sides of these positions but as mentioned to other anon there needs to be a level of pragmatism that occurs i.e a usage of the good parts-again not much of those-or we will get to a winner take all scenario that we don't need. Competition is good…after the pin is pulled-getting to it and the transitory stages will need to be managed very carefully
not against this at all and not being a smart-ass but
then what?
It has to be built on a co-operative system that is very difficult to achieve even if usury, the FED and private banks are eliminated (this needs to occur) but most people's attitudes are "I have mine and fuck everyone else" will not change simply with the elimination of that.
I understand that and can't disagree but at some point if that is the prevailing attitude then we will be here all over again. I'm not of the mindset to just hand it out simply because someone else doesn't want to work diligently for a living but if we don't fix this on wholesale level we will be doing this again.
well yes someone does win in a closed system. Not us. Not saying it has to be a choice but as already mentioned to another anon if this is not fixed properly we or our kids (don't have any) will be right back here again if that chance is ever given . This has never been done or progressed this far. It needs to be done right. I don't have the ultimate answer and if you are honest about it neither do you. It's complicated but if we just bin the entire thing it's going to be moar painful and get rather shitty once the general public becomes hip to what has really gone on.
BOJ's Kuroda flags more easing if virus impact worsens: Sankei
TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda said the central bank would consider additional rapid easing if the coronavirus outbreak significantly threatened Japan’s economy and price trends, the Sankei newspaper reported on Monday. “We would need to consider monetary policy steps if (the virus outbreak) significantly affects Japan’s economy,” Kuroda was quoted as saying in an interview with the daily.
Kuroda called the coronavirus outbreak the “biggest uncertainty” for the domestic economy and flagged “additional easing steps without hesitation” if the economic risks from the virus heightened, Sankei said.
The virus has killed more than 1,700 people in China, and it has already taken a toll on China’s economy - Japan’s largest trading partner - hampering supply chains for car manufacturers to smartphone makers and causing the number of Chinese shoppers visiting Japan to plunge.
Japan’s economy - the world’s third-largest - shrank at the fastest pace in six years (see article below) in the December quarter as domestic demand took a hit from the sales tax hike, underscoring the fragile nature of an economy teetering on the brink of a recession.
Kuroda played down the possibility that global and Japanese economic growth in 2020 would significantly lag last year’s and echoed views that China’s domestic output would bottom out this quarter and recover from April. However, he said much depended on when the outbreak would peak, adding that it took six months for the SARS outbreak in 2002-2003 to be resolved.
Many market players expect the BOJ to stand pat on monetary policy for the foreseeable future, barring big economic shocks and a spike in the yen sharp enough to derail a fragile economy.
https://www.reuters.com/article/us-japan-economy-boj/bojs-kuroda-flags-more-easing-if-virus-impact-worsens-sankei-idUSKBN20B0DH
but it has nothing to do with this below and everything to do with something that started in December-muh corona. I give them a month tops before the taps are turned back on.
Japan's economy shrinks at fastest rate since 2014
https://www.bbc.com/news/business-51499774