General Stock Ideas

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Bigworld, The problem the banksters face is that their debt-based money system is reaching the saturation point, the point where the accumulated global debt burden crushes economic activity. The world is becoming too clogged with debt to function.

Rickards says that at a certain debt/GDP level (90%), additional debt will no longer increase economic activity, and in fact has the opposite effect. So money creation no longer works to stimulate the economy. That's why they've had to steadily lower interest rates year after year, go negative, QE 1,2,3, etc. But having exhausted the monetary policy tools, they're now resorting to the fiscal side, running higher budget deficits and cutting taxes. But taxes were already cut, and the budget deficit is already at nose bleed levels, so they're nearly out of ammo.

One idea would be to cleanse the system of debt via a debt 'jubilee', similar to what was done in ancient times (link below). Something like that could be done when the SDR system is brought in as the new world's reserve currency.

https://en.wikipedia.org/wiki/Jubilee_(biblical)


In a debt based currency system, the money supply is lent into the economy, at interest. So money is not money at all, but a debt instrument (bond/note). The US government has the power to create its own money completely debt-free, but a group of criminals hijacked the system back in 1913.


>>> World Economy Chiefs Flirt With the Idea of Fiscal Stimulus


Bloomberg

By Enda Curran, Jeff Kearns, and Yinan Zhao

October 20, 2019


https://www.bloomberg.com/news/articles/2019-10-20/world-economy-chiefs-flirt-with-fiscal-imf-meeting-takeaways?srnd=premium


Finance ministers and central bankers from around the globe gave momentum to the idea of fiscal stimulus as the way to revive a sagging world economy. But there was little agreement on how to do so.

A synchronized slowdown across almost 90% of the world economy dominated talks at the International Monetary Fund and World Bank’s annual meetings in Washington -- where officials and investors gathered the past week. Intensifying downside risks like trade conflicts were also a major topic of discussion...

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