Central Bank Asset Growth

[chuckChuck]

So the US has been using mega amounts of stimulus for years and their debt to GDP ratio prior to Covid was going higher, while Canada's was declining.

So stimulus and support in canada is bad but in the US its okay?

I don't see any any Conservative premiers saying they want less help from the Feds! Hahah

[FarmJunkie]

Obviously it’s working. Look at Chucks response. If u can’t see this is what’s happened your the problem. Next you gonna tell us we are being racist against dum people. We can’t fix problems if u don’t admit there is one.

[macdon02]

Brian Chang of Crusoe Economics has explained how the BoC doesn't necessarily need to unwind. He's got some dandy articles specific to Canada only. Ive yet to find anyone as good as him on all things Canada. But im interested if anyone has good links on the mechanics of BoC.


https://crusoeeconomics.com/2020/06/18/does-the-bank-of-canada-need-to-unwind-its-balance-sheet/

[furrowtickler]

Brian Chang of Crusoe Economics has explained how the BoC doesn't necessarily need to unwind. He's got some dandy articles specific to Canada only. Ive yet to find anyone as good as him on all things Canada. But im interested if anyone has good links on the mechanics of BoC.


https://crusoeeconomics.com/2020/06/18/does-the-bank-of-canada-need-to-unwind-its-balance-sheet/

You crazy flatearther, lol
Quit with the conspiracy already ... I mean truth of what’s going on

[chuckChuck]

Obviously it’s working. Look at Chucks response. If u can’t see this is what’s happened your the problem. Next you gonna tell us we are being racist against dum people. We can’t fix problems if u don’t admit there is one.

Your words not mine. Try to stick to the issue.

[macdon02]

Japan and ECB have been using stimulus as well and look at how well that has worked. BoJ is the only buyer of Govt debt in Japan. Now ECB is talking going digital, so the decision is made. They wrecked their bond markets. Word on the street is everyone but the Fed is going to electronic currency, barring a dem win, elimination of paper currency in Jan 21. This means Canada will as well. Kiss your physical loonies goodbye and we likely see negative rates with no ability for a bank run. We are past the tipping point on ever believing govt will pay back principal. Look for talk of "perpetual bonds" basically a default. The ability to save wealth will be recreated in a shift from public to private. It's a massive mess created by idealists.

[furrowtickler]

Errol has been warning of this for years ... he must be a flatearther conspiracy theorist as well

[furrowtickler]

So the US has been using mega amounts of stimulus for years and their debt to GDP ratio prior to Covid was going higher, while Canada's was declining.

So stimulus and support in canada is bad but in the US its okay?

I don't see any any Conservative premiers saying they want less help from the Feds! Hahah

We live in Canada , not the US .... for the thousandth time

[Austrian Economics]

Japan and ECB have been using stimulus as well and look at how well that has worked. BoJ is the only buyer of Govt debt in Japan. Now ECB is talking going digital, so the decision is made. They wrecked their bond markets. Word on the street is everyone but the Fed is going to electronic currency, barring a dem win, elimination of paper currency in Jan 21. This means Canada will as well. Kiss your physical loonies goodbye and we likely see negative rates with no ability for a bank run. We are past the tipping point on ever believing govt will pay back principal. Look for talk of "perpetual bonds" basically a default. The ability to save wealth will be recreated in a shift from public to private. It's a massive mess created by idealists.

I don't think that a move to a digital currency really affects much, and I doubt that the central banks really care if you use paper money or not. Any business beyond a mom and pop enterprise cannot function transacting solely in cash.

I definitely agree that negative rates are on the way. As a fiat currency collapses under the dead weight of debt that cannot be repaid, rates have to go lower and lower just to provide relief for debtors. Whether the "solution" is perpetual bonds or MMT, these ideas are just a way to put lipstick on the pig of widespread default.

[AlbertaFarmer5]

I don't think that a move to a digital currency really affects much, and I doubt that the central banks really care if you use paper money or not. Any business beyond a mom and pop enterprise cannot function transacting solely in cash.

I definitely agree that negative rates are on the way. As a fiat currency collapses under the dead weight of debt that cannot be repaid, rates have to go lower and lower just to provide relief for debtors. Whether the "solution" is perpetual bonds or MMT, these ideas are just a way to put lipstick on the pig of widespread default.

So, can there be such a thing as a painless default by either of these means?

By painless, I mean not resulting in mass chaos, obviously it is not painless to anyone trying to be financially responsible.