The true objective of all that money
The guns are all out, and firing. The immediate result: initial reversals of last week's action. Equities rally globally. Straying from predictions, we all should ask ourselves: Who or what does all this money target? My reply: It rushes to bandage over the symptoms of the problem, but fails to solve the problem itself.
● The problem: profligate spending by everyone, but especially governments and paid for with debt, ever more debt.
● The symptom: careening debt and equity markets as investors increasingly recognize the con game.
So investors, especially those who recall September 1992, sell short government debt and equities in a huge game of chicken; in doing so, markets decline and havoc results. (Viz the headlines from last week.) In essence, the EU targets this $1,000,000,00,000 ($1 trillion) against speculators. The true problems remain. And who believes those will be dealt with correctly, forthrightly, transparently?
We shall learn soon enough who recalls the larger lessons from September 1992.
-- David M Gordon / The Deipnosophist