Money Printer Go Brrr

In the spirit of Money Printer Go Brrr, I’ll be posting visuals depicting all the “money printing” that global central banks have been doing lately.

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The Federal Reserve’s balance sheet expanded to a record $6.6 TRILLION in the week ended April 22, an increase of $205 billion from the prior week.

Buying of Treasuries (i.e. sovereign debt monetization) remained the largest component. Purchases of mortgage-backed securities and increased foreign currency swaps were other larger drivers.

Next generation is going to have a hell of a ball with all this amounting debt.

Lol lets see if trump taxes his rich friends and himself!

The top 1% of taxpayers paid $528 billion in tax or 37.3% of all income tax. Whilst the bottom 90% paid about $440 billion or 30.5%.

Something the democrates’ in particular Bernie Sanders AOC and their socialist cronnies cannot grasp.

Cheers

Blackduck

I think when you see how much the average take home pay is that’s where the real difference shows. Bottom 90% may earn 40k a year, top 1% a lot more. Suddenly 528b to 440b sounds like theyve got off lightly.

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@tradeforex077 @Blackduck C’mon folks. Y’all messing up my thread. :-1:

Let’s keep the politics out. There are other threads for that.

I’m covering monetary policies here. And it won’t be just the Fed.

The Fed beating even BOJ, the “QE GOAT” in asset purchases…

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When you say himself I assume you are talking about Donald J Trump President of the Uniting States of America the guy who does the job for diddle squat.

What most average punters don’t understand is that these very wealthy people provide through investment either directly or indirectly jobs for those on $40,000. I never begrudge those who have made a fortune and are rich because they deserve it.

What I do begrudge is the “never will be pigeons of this world” that do nothing to improve their life circumstances and then blame greedy rich people for all their problems. Most people earning $40,000 a year earn that much because they don’t know how to earn $80,000 a year. If they did know how to earn $80,000 then they would be earning $80,000 instead of $40,000.

That’s the beauty of a capitalist system those who strive to better themselves have many good opportunities to achieve success.

Classic case is trading. Don’t blame others for your dumb losing trades. You are the one who pulled the trigger. Same in life don’t blame everyone else if your failings. You are the one living that life and are totally responsible for how you live it.

Cheers

Blackduck

Sorry.

Blackduck

None of that matters — IF Modern Monetary Theory (MMT) is correct.

According to MMT, deficits and debt incurred by a sovereign nation, in its own currency, have no negative effects on the economy of that nation, PROVIDED —

(1) the money created by those deficits is used to mobilize idle resources in the economy, and

(2) the created money is withdrawn from the economy before inflation takes hold.

Is Modern Monetary Theory correct?

The jury is still out on that question. But, many economists point out that the U.S. government has been following a practice of defacto MMT for several years – and here we are, years later, with low inflation and near-zero interest rates.

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Yeah, I’m familiar with MMT. It’s more reality than theory though.

At least certain parts of it, specifically, the monetary aspect part. (The media likes to cherry-pick from MMT and fail to mention other parts like the government being the “employer of last resort”, etc.)

In a fiat currency monetary system, a sovereign currency issuer can create unlimited money with inflation as the only constraint (and from non-operational view, confidence in the currency which is ultimately determined by the productive capacity of the nation/currency users).

Countries have basically been running MMT for a while now. It’s just now at a much bigger scale and faster timeframe.

I just find it a good exercise to keep score of the global central banks’ ballooning balance sheets and try to observe their effects on their currencies (if any).

In terms of relative debt-to-GDP, the U.S. has a long way to go though compared to say Japan or China. ~$7T is “cute” and just the start.

The BoC balance sheet has exploded. Here’s also a distribution of the central bank’s holdings.

Support for the Federal Reserve has been improving. Hmmm.

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ECB balance sheet - from 11% of GDP to (projected) 62% of GDP in 2021

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In the end, I found out that it was illegal, but I decided to try. I found examples of money and I started looking for a high-quality printer and different colors cartridges in order to recreate real dollars. As a result, I came across the site https://www.mrdepot.ca and there was a huge assortment of cartridges and printers. So I tried to use my new printer and print the money and it worked out fine, but nonetheless the money was not real and I could not use it. Besides, it’s illegal so don’t do it!