When the citizens suffer, the central banks flush the trading houses with trillions…
Central banks around the world have increased the stimulus and kept inflation high in order to combat the disastrous economic consequences of the response to the coronavirus outbreak. The Bank of Japan has recently become the country’s largest shareholder and the European Central Bank is ready to expand its colossal stimulus program. Meanwhile, the President of the Federal Reserve, Jerome Powell, is calling on Congress to respond quickly to the U.S. stimulus program proposal because “the risk of excess is less than the risk of substandard measures.
Bank of Japan’s $434 billion treasury of listed funds…
Central bankers are dizzy from all the talk about more economic stimulus and concerns about rising inflation around the world. By 2020, these financial behemoths will have given massive amounts of stimulus to private banks and shareholders.
For example, the Bank of Japan (BoJ) has this year on numerous occasions extended the central bank’s stimulus programme. BoJ’s board members denounced the economic consequences of the Covid-19 outbreak in Japan. Reuters reports that BoJ’s “primary instrument to tackle the pandemic economy” is “to alleviate the financing problems of companies”.
This corporate easing, if you will, has resulted in the BoJ becoming the largest owner of the country’s stock with $434 billion in shares. According to a report written by Shingo Ide, chief equity strategist at NLI Research Institute, to help support the Japanese economy, the BoJ bought huge amounts of exchange-traded funds.
The BoJ’s shares under management make it the first time ever, the central bank’s stash overshadows the Government Pension Investment Fund.
ECB Ready to Launch Colossal-Sized Stimulus Program, Federal Reserve’s Powell Prepared to Over Stimulate
The BoJ is not the only bank to offer large amounts of easement to smaller banks and businesses. According to a recent report and a research paper by Societe Generale ECB-watcher Anatoli Annenkov, the European Central Bank (ECB) is willing to inject immense amounts of money into the European economy.
The EU economy has withstood the stress of excessive lockdowns due to rising coronavirus cases. “The outlook for the near future remains bleak and the ECB will continue to focus on short-term problems until the pandemic comes to a clearer end,” Annenkov said on Wednesday.
Société Générale and Annenkov expect the ECB to continue bond buying until the end of 2021 and they also believe the ECB will add an additional 600 billion euros to the collection of smaller European banks.
Meanwhile, Jerome Powell, president of the Federal Reserve, and Janet Yellen, former Fed leader, have called on the US Congress to conclude a new stimulus agreement. At a recent hearing, Powell explained that “the risk of exaggeration is less than the risk of underachievement”. But according to a number of researchers, economists and analysts, the U.S. central bank is already over…do it.
Critics say Central Banks have kept the Wall Trading Houses Fat and continue to feed Them while Common Citizens are being tossed Crumbs.
Investigative reporters Pam and Russ Martens of wallstreetonparade.com have already uncovered the Fed in numerous reports outlining how the central bank slugged Wall Street trading house bankers by $9 trillion, while giving a lousy one-time check to American citizens.
On December 9, the Martens reported on the recently published Financial Stability Oversight Council (F-SOC) Annual Report 2020. Wall Street trading house financing did not stop in June because the Fed made it look like it did.
Instead, the New York branch of the U.S. central bank “stopped reporting how many billions of dollars a week were spent on misplaced mega-banks on Wall Street”. In the meantime, the Martens stress “food pantry lines grew by miles across the U.S. and 3.3 million small businesses were forced to close down”.
While millions of Americans are unemployed and hungry thanks to government-forced lockdowns, the Fed has kept the stomachs of Wall Street going at all times. Spencer Schiff, the son of renowned economist and prospector Peter Schiff, recently said it’s unfathomable to think about how much the American money supply has grown.
“According to data just released by the Federal Reserve, the U.S. money supply (M2) has now increased by more than 25% in the past year for the first time in record time,” tweeted Schiff. “This rate of monetary inflation is astonishing,” he added.
The situation is the same with almost every central bank in the world, as central planners have alleviated the concerns of businesses and banks, but left citizens out in the cold. That’s why many people wholeheartedly believe they need to cover themselves with assets like cryptocurrency and safe havens like precious metals.
The appalling macroeconomic conditions around the world are clear and blatant indicators that the world’s central banking system failed completely in the last century.
What do you think of the actions of central banks around the world and of all the stimulus programmes? Please let us know what you think of this topic in the comments below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is intended for information purposes only. It is not a direct offer or invitation to make an offer to buy or sell, or a recommendation or approval of products, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in this article.
Published on Thu, 10 Dec 2020 12:05:12 +0000