Busy Week for World’s Biggest Central Banks

Apr.27 -- Global central banks remain under pressure to do more to support their economies through the coronavirus recession even after driving interest rates to record lows and pledging to spend trillions of dollars on asset purchases. The U.S. Federal Reserve and European Central Bank both meet this week, following the Bank of Japan which ramped up its stimulus measures on Monday. Arend Kapteyn, global head of economics and strategy research at UBS, comments on the challenge facing policy makers in an interview on "Bloomberg Markets: European Open."

[FinanceOptimum]

Marriner Eccles was the Governor of the Federal Reserve System in 1941. On September 30 of that year, Eccles was asked to give testimony before the House Committee on Banking and Currency. The purpose of the hearing was to obtain information regarding the role of the Federal Reserve in creating conditions that led to the depression of the 1930s. Congressman Wright Patman, who was Chairman of that committee, asked how the Fed got the money to purchase two billion dollars worth of government bonds in 1933. This is the exchange that followed.

ECCLES: We created it.

PATMAN: Out of what?

ECCLES: Out of the right to issue credit money.

PATMAN: And there is nothing behind it, is there, except our government's credit?

ECCLES: That is what our money system is. If there were no debts in our money system, there wouldn't be any money.

[VixGuyOfficial]

The real Achilles heel of World Economy is not this Covid 19 pandemic, but the global shortage of US Dollars ($13 Trillion shortage currently by April 2020). Both emerging markets and Europe are now desperate for Dollars to print their own currencies. Dollar will be squeezed up high so badly that the entire dollar system will break as Global Central Banks are forced to find alternatives like back to Gold standard (less likely) or Cryptocurrency (more likely)...

[ValahulDeLaRovine]

Inflation Inflation Inflation
The culture of spending confirmed
The culture of savings vanishes
The culture of reckless thinking and lack of preparation confirmed

We have to start asking for what are we actually working - especially with jobs that need a lot of preparation and sacrifices