Entries Tagged 'Economics and Investing' ↓

Helicopter Money for Wall Street – Image

This image by the St. Louis Fed is taken from a Wolf Street article  by Wolf Richter in San Francisco. This picture is worth a 1,000 words….

Total assets on the Fed’s balance sheet from debts of the federal government increase to $608 trillion in four weeks. The stimulus program handed out $1.77 trillion to big banks to loan to their largest customers who pay them the biggest fees. All money was spent in four weeks, bankrupting the original stimulus program.

Word of the Day – Helicopter Money

Definition of Helicopter Money

“Helicopter money is a proposed unconventional monetary policy, sometimes suggested as an alternative to quantitative easing when the economy is in a liquidity trap”. Wikipedia

This term, invented by Milton Friedman, conservative Economist at the University of Chicago in 1969 to explain how economic stimulus works works, means just what this image brings up. A whole lot of minted money dropped out a helicopter which blows it around to those on the ground.

But where is that ground and who is getting that money?

When we got out of the Financial Crises in 2007, the Fed had $3 to $4 trillion in debt on its books. Get ready for what it has on its balance sheet now—6.37 trillion dollars!

“Since March 11, the Fed created $1.77 trillion and handed it to Wall Street either by purchasing financial instruments or as loans. The sole purpose of this was to inflate asset prices and bail out asset holders.” (Wolf Street, “QE 4 Cut in Half….Fed’s Helicopter Money for Wall Street & the Wealthy Hits $1.8 Trillion in 4 Weeks” 4-9-2020)

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Where Are THE MEDIA? We’re being ATTACKED!

Our Country is BEING ATTACKED!

By whom?  by Saudi Arabia and Russia. Have you heard anything about this? Other than that the U.S. oil producers have been driven into paying their customers to take their oil so they can avoid storage costs for it? Do you know what caused this glut on the market? Probably not!

In mid spring 2020 Saudi Arabia sent 20 oil tankers speeding towards the Gulf Coast of the U.S. They are planning to arrive in Texas and Louisiana in May in order to flood the oil market in the U.S. and drop prices of U.S. oil even further than today’s prices.

This in a time when streets in the country are filled with parked cars that are not going anywhere! Continue reading →