Jason Burack: The Central Bank Bond Buying Scheme (Debt Monetization) Will Only Get Worse

By Wall St. For Main St. / December 20, 2010 / marketsanity.com / Article Link

A few days ago Bloomberg came out with an article about how major central banks have done $5.6 trillion worth of QE this year. https://finance.yahoo.com/news/centra...

However, just this week the Bank of Japan (BOJ) & European Central Bank (ECB) announced new stimulus (really bailout) QE programs.

A lot of these programs are being done solely to create newly created currency units out of thin air to buy government bonds to maintain or grow the size of government.

Meanwhile, the Bank of International Settlements (BIS) just issued a new report about how "markets" are now moving from a liquidity crisis into a solvency crisis because of the global cash flow problem. As in there is not enough cash flow to service existing debts let along ever think of paying a lot of them off. And yet Wall Street banks and other large banks in the EU, UK, Japan and China want to keep issuing more debt and credit!

BIS Warns Markets Are Moving To An Insolvency Phase https://gsiexchange.com/bis-believes-...

Jason Burack is an investor, entrepreneur, financial historian, Austrian School economist, and contrarian. Jason co-founded the startup financial education company Wall St for Main St, LLC, to try to help the people of Main Street by teaching them the knowledge, skills, research methods, and investing expertise of Wall Street. You can also find Jason's work at his blog website at www.jasonburack.com.

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