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Here is the thing central banks are printing exponential debt money from nothing. Most people from youth generations cannot afford to buy affordable houses pric
by acd 8y ago
Here is the thing central banks are printing exponential debt money from nothing. Most people from youth generations cannot afford to buy affordable houses priced with that debt.. You could even say younger people are exponential debt slaves working for the old and rich. Having kids myself I do not feel this system is fair.
- daxorid 8y agoIndeed. And the strange irony is that HN millenials will defend central banking, "inflation targets", and ZIRP vehemently. I don't understand it.
- pembrook 8y agoIt sounds like you haven't read anything about history in the United States before modern central banking took hold. See section 2, the free banking era: https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States https://en.wikipedia.org/wiki/List_of_recessions_in_the_Unit... With no central bank, our economy experienced regular depressions (worse than recessions--but lots of those too) and panics with unemployment fluctuating up to 20% during each of those times.
- gruez 8y ago>central banks are printing exponential debt money from nothing Source? Didn’t QE end a while ago?
- daxorid 8y agoOP said "central banks", as in plural. The ECB, BOJ, and SNB are doing a bang-up job to inflate global asset prices. As for the Fed, their balance sheet unwind rate has been a mere rounding error thus far.
- Gibbon1 8y agoI saw a chart that broke out the rise in various prices over the last ten years as the banks injected vast amounts of capital. Things like stocks and real estate went up 150-250%. Things that make up 'core inflation' went up 17%. As someone in my 50's I've come to look at my remaining working years as an asset. The central banks did a bang up job of devaluing that.
- acd 8y agohttps://en.wikipedia.org/wiki/Quantitative_easing https://en.wikipedia.org/wiki/Quantitative_easing "Increased income and wealth inequality" Us has begun to slowly ease of Quantitative easing by increasing the interest rate. Other central banks are still using QE.
- pembrook 8y agoQuantitative easing is not what you think it is. Yes, QE plus low interest rates inflate the value of risk assets like equities and real estate. However, the alternative was stagnation and high unemployment and low growth for decades. Does it suck for the generation stuck in the middle who hasn't accumulated enough to own any risk assets? Yes. However it's better than the alternative.