A rather synchronous tightening at the end of December against the backdrop of vaccination programs, which should, on the contrary, untie the hands and free the economy from forced suicide.
However, the unprecedented economic terror unleashed through full-blown Lockdowns has a rationale behind it. Lockdown is like a business! As long as they give QE money in all directions, they need to suppress inflationary processes through an artificial deflationary spiral, and economic terror in this sense is the most effective method, no matter how wild it sounds. While saving the economy from collapse through bloated deficits, they simultaneously provoke an economy collapse through economic terror. They have reached such a stage that there is simply no way back, only forward - to the cliff, into the abyss.
They are ready to endlessly inject trillions of subsidies into the economy, monetizing the national debt a little less than completely, but they are not ready to stop. Any stop will break the fragile structure of a rotten system, highly dependent on monetary and fiscal support. At the same time, killing all small and medium businesses, saving large corporations. The main beneficiaries of the current crisis are biotech corporations, IT corporations and banksters. It is they who received the main profit from COVID hysteria, and it is they who manage the main cash flows, both through QE and through government subsidies. Is it by chance that all media and political parties are tied to this corporate segment?
I can only say that I've made a killing in the stock market as of today anyway. Insane rallies in stocks like blackberry which I'm in thanks to reddit basically encouraging millions of users to do a 'bull raid'.. Of course, there were whales joining in as well. I find it annoying since it obliterated my blackberry strategy but it took out at least one hedge fund with the gamestop short cover rally.. I wonder what will happen next?
I wonder what will happen next?
Nothing good.
IF instead of doing real things everyone start mining and playing on stock market it always ends bad.
@robertGL China becomes the next superpower and the dollar loses reserve currency status, that's what happens next. Then you'll kind of have to work for the goods your country imports.
Hard to say on that - China has its own share of issues and I think most like the dollar since the US is quite good for finance. Anything can happen these days, however. I just hope that I won't be stuck in a bad situation as a result
@Vitaliy_Kiselev it really is a crazy situation. On one hand, you have large finance whose status quo means predatory behavior towards 'retail' investors. On the other hand, we have a collective that are running a hybrid boiler-room operation with willing participants. These events have been quite destabilizing, IMHO. Maybe it will fade away in time, but maybe it will create unintended consequences over the following days.
@robertGL ref "I think most like the dollar". Search for dedollarization. BRIC states have been moving away from trading in dollars for the last few years. The US is one QE away from the world at large catching on. The moment the petrodollar goes, the reserve status goes.
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