Comments on: A Run on Central Banks? http://blogs.reuters.com/macroscope/2010/06/03/a-run-on-central-banks/ Shining a light on the dismal science Wed, 16 Nov 2016 01:39:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: hilding http://blogs.reuters.com/macroscope/2010/06/03/a-run-on-central-banks/comment-page-1/#comment-1764 Sun, 06 Jun 2010 20:55:22 +0000 http://blogs.reuters.com/macroscope/?p=3482#comment-1764 Who or which will borrow money to the banks with an interest of 0,1 % per year? – when it will take 1000 years to get a full return, and the likelyhood of having the bank going broke in 1000 years is 1?
So no bank in the US or Europe is paying enough to compensate for the risk.

Who or which will keep the money out of the banks and under the bed when no central bank governor can maintain purchasing power of the currency?

So why should you USD or Euro?

So if you have money — buy whatever you can in real assets to save the day. As there are more money out there than the value of all the goods – this means inflation. We will have superinflation.
It is the only way out.
Because we don,t have any brave politicians and they don,t have any track-records?

We have to realize no one wants to pay and the Federal Reserve was broke already in 2008 and the European Central bank got broke this year.

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By: GLK http://blogs.reuters.com/macroscope/2010/06/03/a-run-on-central-banks/comment-page-1/#comment-1762 Fri, 04 Jun 2010 16:44:40 +0000 http://blogs.reuters.com/macroscope/?p=3482#comment-1762 Yes, they can go broke.
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As long as the Bankers are getting rich fleecing the World via charging perpetual interest on re-packaged loans they know full well will NEVER get paid back, the IMF will never allow that to happen until the day comes when they use “manufactured insolvency” as an excuse for a one world monetary system. In the meantime the little people’s spending power will continue to slowly erode as it has been doing for decades.

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By: GLK http://blogs.reuters.com/macroscope/2010/06/03/a-run-on-central-banks/comment-page-1/#comment-1761 Fri, 04 Jun 2010 11:59:44 +0000 http://blogs.reuters.com/macroscope/?p=3482#comment-1761 Central Banks operate via the Golden Rule. They make the “gold” so therefore they make the rules. The cannot go broke, not the least of which is because the money they print has no tangible backing like it did when money was based on Gold. Economists call this “fiat money.” In other words today’s money is based on smoke and mirrors and as such can be manipulated at the whim of the Central Banks. The power to manipulate the money supply creates boom-bust cycles that are used to determine the fate of societies all over the world. Dumping more money into the existing supply devalues it and raises prices and borrowing rates. This is called, inflation, and inflation is nothing more than a form of taxation that the vast majority are blind to. A wealthy man once said the definition of a recession is, “when all the money goes back to its rightful owners.” With our fiat monetary system this “redistribution” is exactly what is happening, and will continue to happen. And after everyone is slowly but surely brought to their economic knees, the banks will claim “insolvency” which will justify a one-World currency. At that point you can kiss Liberty, Democracy, and Free-Market economies, goodbye, and say hello, to a Socialist World Empire.

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By: cranston http://blogs.reuters.com/macroscope/2010/06/03/a-run-on-central-banks/comment-page-1/#comment-1760 Fri, 04 Jun 2010 11:18:11 +0000 http://blogs.reuters.com/macroscope/?p=3482#comment-1760 Yes, they can go broke. The Federal Reserve cannot technically go broke because it has the right to print or create money while all or most other banks (especially those in Europe) are not allowed to print new money without express permission. This is left over from World War 2 and must come to an end. The United States made a bad example by lending to the criminal banks in New York City – ‘Too Big to Fail’ was actually ‘Too Big to Jail’ – and jail it should be for those men and women who continue to sit at the helm of insolvent and criminal banks in New York. There will be no correction without their elimination and replacement.

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By: nwfreetrader http://blogs.reuters.com/macroscope/2010/06/03/a-run-on-central-banks/comment-page-1/#comment-1758 Fri, 04 Jun 2010 04:54:42 +0000 http://blogs.reuters.com/macroscope/?p=3482#comment-1758 Indeed, central banks do go broke; indeed, governments can print money; indeed printing inordinate amounts of money (monetization) is the root cause of inflation. If this is all true, why dont all governments inflate their way out of debt and deflate ? Because they will destroy the bond markets that they require to sell more of their own bonds and securities. Thats why we eventually get deflation; not because governments want it, but because it becomes the least of all evils, hyperinflation included.

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