IT’S TIME TO HEAR THE UGLY TRUTH: CENTRAL BANKS ARE PROPPING UP THE MARKET | WHAT REALLY HAPPENED


IT’S TIME TO HEAR THE UGLY TRUTH: CENTRAL BANKS ARE PROPPING UP THE MARKET

For years critics of U.S. central-bank policy have been dismissed as Negative Nellies, but the ugly truth is staring us in the face: Stock-market advances remain a game of artificial liquidity and central-bank jawboning, not organic growth. And now the jig is up.

As I’ve been saying for a long time: There is zero evidence that markets can make or sustain new highs without some sort of intervention on the side of central banks. None. Zero. Zilch.

And don’t think this is hyperbole on my part. I will, of course, present evidence.

In March 2009 markets bottomed on the expansion of QE1 (quantitative easing, part one), which was introduced following the initial announcement in November 2008. Every major correction since then has been met with major central-bank interventions: QE2, Twist, QE3 and so on.

When market tumbled in 2015 and 2016, global central banks embarked on the largest combined intervention effort in history. The sum: More than $5 trillion between 2016 and 2017, giving us a grand total of over $15 trillion, courtesy of the U.S. Federal Reserve, the European Central Bank and the Bank of Japan:

Webmaster's Commentary: 

There will have to be an end to this, if the US economy is going to continue to survive.

And that will need to be a real examination of how the US budget got into the horrific mess it is today; a $985 billion deficit. Current Federal Budget Deficit

The article goes on to state: "he U.S. federal budget deficit for fiscal year 2019 is $985 billion. FY 2019 covers October 1, 2018, through September 30, 2019. The deficit occurs because the U.S. government spending of $4.407 trillion is higher than its revenue of $3.422 trillion.

The deficit is 18 percent greater than last year. The FY 2018 budget created an $833 billion deficit. Spending of $4.173 was more than the estimated $3.340 revenue."

I don't know how easy it is to get your mind around that figure; but the folks in Foggy Bottom have got this fixed, otherwise, the US will go broke, in a spectacularly ugly spectacle.

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