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These banks are counting on "Too big to fail"... and the politicians will back it. To back it they will print money, which will devalue the currency and drive u

These banks are counting on "Too big to fail"... and the politicians will back it. To back it they will print money, which will devalue the currency and drive up inflation. this is a sick and twisted collapse of multiple economies. It has only one direction. down. its not too late to stop it, but nobody will, because the cost to those in power will be too great.

IAmGraydon 4y ago
>These banks are counting on "Too big to fail"... and the politicians will back it. To back it they will print money, which will devalue the currency and drive up inflation. Bailing out depositors isn't going to increase inflation - you're just giving people the same amount of money they already have. The big problem with it is that it prevents the natural process of wealth destruction from occurring, so it may just drag out inflation for longer.
- brodouevencode 4y ago
  The only tool the fed has at the moment is the printer, so it very much will increase inflation by its very definition.
- helsinki 4y ago
  >Bailing out depositors isn't going to increase inflation - you're just giving people the same amount of money they already have. That’s not how it works. The original funds do not evaporate out of thin air. They transferred to the opposite side of the trades that the banks are making, meaning customers’ funds are melting into the pockets of hedge funds, etc. So, in effect, it is the opposite of what you’re stating. The money is not replaced; it is duplicated, thus causing inflation.
  - IAmGraydon 4y ago
    I’m afraid you’re the one who doesn’t understand how it works. The banks are buying treasuries from the US Govt with customer deposits, which are then being devalued as bond yields rise. They are then being forced to liquidate those devalued bonds before maturity to cover withdrawals. There isn’t a hedge fund on the other side.

IAmGraydon 4y ago

>These banks are counting on "Too big to fail"... and the politicians will back it. To back it they will print money, which will devalue the currency and drive up inflation. Bailing out depositors isn't going to increase inflation - you're just giving people the same amount of money they already have. The big problem with it is that it prevents the natural process of wealth destruction from occurring, so it may just drag out inflation for longer.

brodouevencode 4y ago
The only tool the fed has at the moment is the printer, so it very much will increase inflation by its very definition.
helsinki 4y ago
>Bailing out depositors isn't going to increase inflation - you're just giving people the same amount of money they already have. That’s not how it works. The original funds do not evaporate out of thin air. They transferred to the opposite side of the trades that the banks are making, meaning customers’ funds are melting into the pockets of hedge funds, etc. So, in effect, it is the opposite of what you’re stating. The money is not replaced; it is duplicated, thus causing inflation.
- IAmGraydon 4y ago
  I’m afraid you’re the one who doesn’t understand how it works. The banks are buying treasuries from the US Govt with customer deposits, which are then being devalued as bond yields rise. They are then being forced to liquidate those devalued bonds before maturity to cover withdrawals. There isn’t a hedge fund on the other side.