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Bankers are considering ‘dropping money from the sky’ to prop up the economy

A daring new approach to solving the economic slump that has taken hold in Europe is gaining popularity in official circles.

Helicopter money refers to money figuratively “dropped from the sky”, or freshly created cash used to fund infrastructure projects or put directly into the hands of citizens.

Rather than being thrown from the sky, helicopter money might mean every UK citizen being credited with, say, £500 from the central bank straight into their current account.

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http://www.independent.co.uk/news/business/news/helicopter-money-adair-turner-recession-interest-rates-draghi-osborne-economy-a7027621.html
Helicopter money really is the natural end point of Keynesian economics and shows just how desperate they are. We're finally reaching the endpoint of this 70 year economic experiment.

Zero interest rate policy has failed, quantitative easing has failed and in the places where negative interest rates are occurring they are also failing. Helicopter money is just quantitative easing by another name. Instead of government bond buy backs, they are bypassing the banking system and trying to stimulate spending directly at the level of the consumer.

Government intervention, central bank intervention, loose monetary policy, debt creation and money supply expansion was the cause of all our economic problems. They then tried to cure that with more central bank intervention, even looser monetary policy, even more debt creation and even greater expansion of the money supply. No surprise that you can't cure a problem with the same thing that created it.

Instead of just admitting this and bringing back sound free market principles, the business cycle and sound money they are just continuing further and further down this rabbit hole. The only thing is that the further down the hole they go the fewer options they have available to them.

Negative interest rates and helicopter money were nothing but theoretical curiosities 10 years ago, no one believed they were ever possible; now they are our economic reality.

Yes helicopter money may help them reach their inflation targets. And yes we may get a small spike in GDP as a result of it. But it is not sound economic growth, it is more phony artificially stimulated growth that won't last and will worsen the problems within our economy.
(edited 7 years ago)
you know what is screams
BUY SOME BULLION
the markets are on the verge of collapse and then it will be those with gold and valuable supplies who have the advantage
however whereas supplies run out and rot
gold doesn't have these issues
Original post by jamesthehustler
you know what is screams
BUY SOME BULLION
the markets are on the verge of collapse and then it will be those with gold and valuable supplies who have the advantage
however whereas supplies run out and rot
gold doesn't have these issues


There is always a f***ing gold nut on every forum I go on lol.

"Buy gold. Gold will solve all your problems. Gold will pass your exams for you. Gold will clear the acne on your face and make women notice you. Gold will help you land that job you're going for. Gold will fix your marriage"

Lol

Posted from TSR Mobile
Original post by AlphaSteel
There is always a f***ing gold nut on every forum I go on lol.

"Buy gold. Gold will solve all your problems. Gold will pass your exams for you. Gold will clear the acne on your face and make women notice you. Gold will help you land that job you're going for. Gold will fix your marriage"

Lol


Yeah I remember all these piping up in summer 2011 when the Eurozone crisis was kicking off and there was a big flight to safety in to assets like gold because people were thinking there was going to be an imminent collapse of the Euro and various governments bonds would go insolvent etc, and we had all these people saying the end is night buy gold.

If you bought gold then you would have stood to make big losses.



Gold is an asset with a volatile price, it's not the ultimate safe asset, but some uninformed people on forums go round talking like its the best way to stash your savings to guarantee safety.
Original post by AlphaSteel
There is always a f***ing gold nut on every forum I go on lol.

"Buy gold. Gold will solve all your problems. Gold will pass your exams for you. Gold will clear the acne on your face and make women notice you. Gold will help you land that job you're going for. Gold will fix your marriage"

Lol

Posted from TSR Mobile


Original post by MagicNMedicine
Yeah I remember all these piping up in summer 2011 when the Eurozone crisis was kicking off and there was a big flight to safety in to assets like gold because people were thinking there was going to be an imminent collapse of the Euro and various governments bonds would go insolvent etc, and we had all these people saying the end is night buy gold.

If you bought gold then you would have stood to make big losses.



Gold is an asset with a volatile price, it's not the ultimate safe asset, but some uninformed people on forums go round talking like its the best way to stash your savings to guarantee safety.


over a long term holding and in some nations (literally the whole middle east) with uncertainty as high as it is a very powerful asset to have
take that chart back to the millennium and show the price different between now and then it about 400-500% up even now
so if you had put £20k in gold back at the turn of the millennium you would have enough to buy a brand new mercedes or even a bentley with today's profit
of course had you sold at the peak you have enough for a dealership approved ferrari

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