are we looking at one final desperate move

central banks are considering creating money out of thin air and would just give it to national governments or ordinary citizens

Central banks are already doing the unthinkable - you just don't know it

Faced with political intransigence, central bankers are openly talking about the previously unthinkable: "helicopter money".

A catch-all term, helicopter drops describe the process by which central banks can create money to transfer to the public or private sector to stimulate economic activity and spending. Long considered one of the last policymaking taboos, debate around the merits of helicopter money has gained traction in recent weeks.

http://www.telegraph.co.uk/business/2016/03/17/central-banks-are-already-doing-the-unthinkable---you-just-dont/

Edited March 22, 201610 yr by midas

Really nothing new....helicopter money is just another name for central banks Quantitative Easing (QE) like printing money to inject into the economy, buying govt bonds, etc. which has been going on since the Great Recession 2008. Europe is a little late to the QE party (wanted to try austerity first), but they have now arrived.

Cool , let the money drop. I'll sure spend it all to help the economy. I'll spend it all on GOLD & SILVER!!

Really nothing new....helicopter money is just another name for central banks Quantitative Easing (QE) like printing money to inject into the economy, buying govt bonds, etc. which has been going on since the Great Recession 2008. Europe is a little late to the QE party (wanted to try austerity first), but they have now arrived.

Agree. Bail outs (too big to fail), purchase of company debt (e.g. AIG), purchase of company shares (General Motors, etc),purchase of toxic debt held by banks and of course all the entitlement programs like guaranteed student loans, not to mention the various broader Quantitative Easing programs have been around for years in the US and similar programs exist to some extent in Europe, Japan and many more countries. The US student loan total is now around $1.2 Trillion and a significant amount of that doesn't look like it's being repaid ... free money.

Although it's often called "printing money" it really only needs a few computer entries here and there.

Really nothing new....helicopter money is just another name for central banks Quantitative Easing (QE) like printing money to inject into the economy, buying govt bonds, etc. which has been going on since the Great Recession 2008. Europe is a little late to the QE party (wanted to try austerity first), but they have now arrived.

Then there should also be nothing new about what happens just based on history? Or is it different this time?

The last attempt to "flogging a death horse."

Only remedy: Revoke "globalization". 1st world countries will compete among themselves (similar cost structure to produce industrial goods)

2nd " " " " " " " " " " " " "

3rd " " " " " " " " " " " " "

In other words: Trade barriers, as before. Everything else is "flogging a death horse". Mainly the European and the US horse.

Let's get practical: If one can buy a nail in China for 1 cent and the same nail costs 3 cents in Europe, where would one by the nail ? = Different cost structure.

Now who is going to be on the winning side in this game. We already know.

Unless this constellation is revoked, it's bye bye Europe and bye bye USA.

Cheers.

The last attempt to "flogging a death horse."

Only remedy: Revoke "globalization". 1st world countries will compete among themselves (similar cost structure to produce industrial goods)

2nd " " " " " " " " " " " " "

3rd " " " " " " " " " " " " "

In other words: Trade barriers, as before. Everything else is "flogging a death horse". Mainly the European and the US horse.

Let's get practical: If one can buy a nail in China for 1 cent and the same nail costs 3 cents in Europe, where would one by the nail ? = Different cost structure.

Now who is going to be on the winning side in this game. We already know.

Unless this constellation is revoked, it's bye bye Europe and bye bye USA.

Cheers.

The Donald will have everyone making those nails for 1/2 cent

Really nothing new....helicopter money is just another name for central banks Quantitative Easing (QE) like printing money to inject into the economy, buying govt bonds, etc. which has been going on since the Great Recession 2008. Europe is a little late to the QE party (wanted to try austerity first), but they have now arrived.

Quantitative Easing

What the Japanese are going to do is not quantitative easing

The Japanese government plans to include gift certificates for low-income young people in its fiscal 2016 supplementary budget, Sankei reports, without saying who provided the information.Recipients would be able to use them for daily necessities.The government sees gift certificates as more effective in stimulating consumption than cash handouts, which may be deposited.

Edited March 24, 201610 yr by midas