"Helicopter Money" Is 12-18 Months Away

Author Topic: "Helicopter Money" Is 12-18 Months Away  (Read 3158 times)

0 Members and 1 Guest are viewing this topic.

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
"Helicopter Money" Is 12-18 Months Away
« on: September 18, 2015, 08:58:03 PM »
It Begins: Australia's Largest Investment Bank Just Said "Helicopter Money" Is 12-18 Months Away
18 September 2015
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2015-09-18/it-begins-australias-largest-investment-bank-just-said-helicopter-money-12-18-months
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
GordonTLong - HELICOPTER MONEY, NIRP, GUARANTEES w/ John Rubino
« Reply #1 on: October 18, 2015, 03:49:35 PM »
MACRO ANALYTICS - 10 16 15 - HELICOPTER MONEY, NIRP, GUARANTEES w/ John Rubino https://www.youtube.com/watch?v=xn80nKrvizA

Oct 18, 2015 GordonTLong


A Stunning Admission From A BOE Central Banker: This Is What The Coming "Helicopter Money" Will Look Like
6 November 2015
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2015-11-06/stunning-admission-boe-central-banker-what-coming-helicopter-money-will-look

It Begins: Desperate Finland Set To Unleash Helicopter Money Drop To All Citizens
6 December 2015
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2015-12-06/it-begins-desperate-finland-set-unleash-helicopter-money-drop-all-citizens
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline windyacres

  • Member
  • *****
  • Posts: 3,152
  • 2+2=4
Helicopter Money: Global Central Banks Consider Distributing Money Directly To The People 

Michael Snyder
March 21st, 2016

Should central banks create money out of thin air and give it directly to governments and average citizens? If you can believe it, this is now under serious consideration. Since 2008, global central banks have cut interest rates 637 times, they have injected 12.3 trillion dollars into the global financial system through various quantitative easing programs, and we have seen an explosion of government debt unlike anything we have ever witnessed before.

But despite these unprecedented measures, the global economy is still deeply struggling. This is particularly true in Japan, in South America, and in Europe. In fact, there are 16 countries in Europe that are experiencing deflation right now. In a desperate attempt to spur economic activity, central banks in Europe and in Japan are playing around with negative interest rates, and so far they seem to only have had a limited effect.

So as they rapidly run out of ammunition, global central bankers are now openly discussing something that might sound kind of crazy. According to the Telegraph, central banks are becoming increasingly open to employing a tactic known as “helicopter money”…

Faced with political intransigence, central bankers are openly talking about the previously unthinkable: “helicopter money”.
A catch-all term, helicopter drops describe the process by which central banks can create money to transfer to the public or private sector to stimulate economic activity and spending.

Long considered one of the last policymaking taboos, debate around the merits of helicopter money has gained traction in recent weeks.
Do you understand what is being said there?
The idea is basically this – central banks would create money out of thin air and would just give it to national governments or ordinary citizens.

So who would decide who gets the money?

Well, they would.

If you are anything like me, this sounds very much like Pandora’s Box being opened.

But this just shows how much of a panic there is among central bankers right now. They know that we are plunging into a new global economic crisis, and they are desperate to find something that will stop it. And if that means printing giant gobs of money and dropping it from helicopters over the countryside, well then that is precisely what they are going to do.

In fact, the chief economist at the European Central Bank is quite adamant about the fact that the ECB can print money out of thin air and “distribute it to people” when the situation calls for it…

ECB chief Mario Draghi has refused to rule out the prospect, saying only that the bank had not yet “discussed” such matters due to their legal and accounting complexity. This week, his chief economist Peter Praet went further in hinting that helicopter drops were part of the ECB’s toolbox.

“All central banks can do it“, said Praet. “You can issue currency and you distribute it to people. The question is, if and when is it opportune to make recourse to that sort of instrument“.

Apparently memories of the Weimar Republic must have faded over in Europe, because this sounds very much like what they tried to do. I don’t know why anyone would ever want to risk going down that road again.

Here in the United States, the Federal Reserve is not openly talking about “helicopter money” just yet, but that is only because the stock market is doing okay for the moment.

Most Americans don’t realize this, but the primary reason why stocks are doing better in the U.S. than in the rest of the world is because of stock buybacks. According to Wolf Richter, corporations spent more than half a trillion dollars buying back their own stocks over the past 12 months…

During the November-January period, 378 of the S&P 500 companies bought back their own shares, according to FactSet. Total buybacks in the quarter rose 5.2% from a year ago, to $136.6 billion. Over the trailing 12 months (TTM), buybacks totaled $568.9 billion.

When corporations buy back their own stocks, that means that they are slowly liquidating themselves. Instead of pouring money into new good ideas, they are just returning money to investors. This is not how a healthy economy should work.

But corporate executives love stock buybacks, because it increases the value of their stock options. And big investors love them too, because they love to see the value of their stock holdings rise.
So we will continue to see big corporations cannibalize themselves, but there are a couple of reasons why this is starting to slow down.

Number one, corporate profits are starting to fall steadily as the economy slows down, so there will be less income to plow into these stock buybacks.

Number two, many corporations have used debt to fund buybacks, but now it is getting tougher for corporations to get new funding as corporate defaults rise.

As stock buybacks slow, this is going to put downward pressure on the market, and we will eventually catch up with the rest of the planet. At this point, many experts are still calling for stocks to fall by another 40, 50 or 60 percent from current levels. For example, the following comes from John Hussman…

From a long-term investment standpoint, the stock market remains obscenely overvalued, with the most historically-reliable measures we identify presently consistent with zero 10-12 year S&P 500 nominal total returns, and negative expected real returns on both horizons.

From a cyclical standpoint, I continue to expect that the completion of the current market cycle will likely take the S&P 500 down by about 40-55% from present levels; an outcome that would not be an outlier or worst-case scenario, but instead a rather run-of-the-mill cycle completion from present valuations. If you are a historically-informed investor who is optimistic enough to reject the idea that the financial markets are forever doomed to extreme valuations and dismal long-term returns, you should be rooting for this cycle to be completed. If you are a passive investor, you should at least align your current exposure with your investment horizon and your tolerance for cyclical risk, which we expect to be similar to what we anticipated in 2000-2002 and 2007-2009.
When the S&P 500 does fall that much eventually, the Federal Reserve will respond with emergency measures.

So yes, we may see “helicopter money” employed in Japan and in Europe first, but we will see it here someday too.

I know that a lot of people out there are feeling pretty good about things for the moment because U.S. stocks have rebounded quite a bit lately. But remember, the fundamental economic numbers just continue to get even worse. Just today we learned that existing home sales in the United States had fallen by the most in six years. That is definitely not a sign that things are “getting better”, and I keep trying to warn people that tumultuous times are dead ahead.

And if global central bankers did not agree with me, they would not be talking about the need for “helicopter money” and other emergency measures.


http://theeconomiccollapseblog.com/archives/helicopter-money-global-central-banks-consider-distributing-money-directly-to-the-people
Be Prepared

Offline windyacres

  • Member
  • *****
  • Posts: 3,152
  • 2+2=4
Deutsche Bank Unveils The Next Step:
 “QE Has Run Its Course, It’s Time To Tax Wealth” 



Zero Hedge
May 1, 2016

Helicopter money may be on the horizon, but if Deutsche Bank has its way, there is at least one intermediate step.

According to DB’s Dominic Konstam, now that the benefits QE “have run their course”, it is time for the next, and far more drastic step: “the ECB and BoJ should move more strongly toward penalizing savings via negative retail deposit rates or perhaps wealth taxes. With this stick would also come a carrot – for example, negative mortgage rates.”

Here is the big picture unveiling of what is coming next from Deutsche Bank’s Dominic Konstam, who is also buying the Treasury long end hand over fist:

    The G3 central banks all stood pat, continuing the move away from the beggar-thy-neighbor paradigm. However, the adverse market reaction to the BoJ’s inaction suggests that the benefits of QE (or QQE) in its present form might have run their course.
    It is becoming increasingly clear to us that the level of yields at which credit expansion in Europe and Japan will pick up in earnest is probably negative, and substantially so. Therefore, the ECB and BoJ should move more strongly toward penalizing savings via negative retail deposit rates or perhaps wealth taxes. With this stick would also come a carrot – for example, negative mortgage rates.
    Until then, bank NIM compression will continue to drive elevated demand for dollar-denominated assets, which manifests itself in suppressed UST term premia and wide cross-currency bases.
    What this means for the US is that policy rates and longer bond yields are unlikely to go up until global growth accelerates materially. Until such time, it is critical for the Fed to continue to relent, allowing real yields to keep falling while breakevens rise and nominal yields remain roughly static.
    If the Fed were to turn hawkish, there is perhaps even less scope for long-end yields to rise as breakevens would likely collapse on policy error fears.

Some of the troubling detail:

    QE as implemented in major economies since the crisis has operated through two shocks: a demand shock whereby real yields are forced lower through lower nominal yields and static – or even falling – breakevens, and a shock to inflation expectations, whereby real yields ultimately continue to fall but due to rising BEI and static to lower nominal yields. In the case of the Anglo-Saxon economies, the demand shock quickly gave way to the shock (higher) to inflation expectations and actually allowed nominal yields to rise, if fleetingly.

    The second shock, to inflation expectations, has thus far remained stubbornly elusive in Europe and more so in Japan, and ephemeral in the Anglo-Saxon economies. That said, this dynamic appears to have re-emerged in the US post Fed relent and has been an important driver of the recovery in risk assets and, more generally, the easing of financial conditions.

    This week’s BoJ announcement disappointed, and as a result the yen appreciated sharply. This outcome does not bode well for the future efficacy of QE, at least while that is the primary policy tool in use. Breakevens have been drifting lower and real yields have been drifting higher since last summer. In other words, financial conditions in Japan are tightening, suggesting the need for more stimulus. However, the BoJ already holds a significant proportion of the assets that would be available for purchase, and the gains from additional QE activity – higher breakevens, lower real yields, and a weaker yen – are likely on the margin to be fleeting. It appears that the markets doubt the BoJ’s willingness or ability to carry on with larger and broader asset purchases, or worse yet they do not believe that such asset purchases will have their desired stimulative effect

    Further QE should be viewed as an experiment in real time, where the point of inquiry is the level of real or nominal yields at which credit will begin to expand more strongly with loan-to-deposit ratios increasing. What seems increasingly clear to us is that this level is likely at negative yields, and probably substantially so. If this is true, it would suggest to us that the equilibrium level of rates in the economy is probably negative. This in turn would strongly suggest a significant re-think to short-rate policy. In this case, central banks should move more strongly toward penalizing savings, rather than just the institutions that “house” those savings – the banks. This would mean allowing significantly negative retail deposit rates or perhaps even wealth taxes. With this stick would also come a carrot – one example being that while deposit rates penalize savings (the whole point), banks might also pay borrowers to buy houses via negative mortgage rates.

In short, the real central bank panic is about to be unleashed; who will suffer? Why everyone else. And should wealth taxes really be imminent, we foresee a lot of “boating incidents” in the immediate future.


http://www.prisonplanet.com/deutsche-bank-unveils-the-next-step-qe-has-run-its-course-its-time-to-tax-wealth.html
Be Prepared

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
Steve Keen on secular stagnation and helicopter money
« Reply #4 on: May 15, 2016, 12:09:10 AM »
Steve Keen on secular stagnation and helicopter money https://www.youtube.com/watch?v=C7plYn2qDN0

May 14, 2016 Boom Bust
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
Why The G7 May Be Hastening Helicopter Money
« Reply #5 on: June 04, 2016, 08:17:29 AM »
Why The G7 May Be Hastening Helicopter Money
2 June 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-06-02/why-g7-may-be-hastening-helicopter-money
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
Re: "Helicopter Money" Is 12-18 Months Away
« Reply #6 on: June 05, 2016, 09:15:41 PM »
What tools does the Fed have left? Part 3: Helicopter money
11 April 2016
, by Ben S. Bernanke (Brookings)
http://www.brookings.edu/blogs/ben-bernanke/posts/2016/04/11-helicopter-money

Ben S. Bernanke: In more prosaic and realistic terms, a “helicopter drop” of money is an expansionary fiscal policy—an increase in public spending or a tax cut—financed by a permanent increase in the money stock





All together now! … We all live in a Yellen submarine, Yellen submarine! https://www.youtube.com/watch?v=krIus0i9xn8

09/18/2015 It Begins: Australia's Largest Investment Bank Just Said "Helicopter Money" Is 12-18 Months Away http://www.zerohedge.com/news/2015-09-18/it-begins-australias-largest-investment-bank-just-said-helicopter-money-12-18-months

11/06/2015 A Stunning Admission From A BOE Central Banker: This Is What The Coming "Helicopter Money" Will Look Like http://www.zerohedge.com/news/2015-11-06/stunning-admission-boe-central-banker-what-coming-helicopter-money-will-look

12/06/2015 It Begins: Desperate Finland Set To Unleash Helicopter Money Drop To All Citizens http://www.zerohedge.com/news/2015-12-06/it-begins-desperate-finland-set-unleash-helicopter-money-drop-all-citizens


04/07/2016 Helicopter money is closer than you think by Larry Elliott http://www.theguardian.com/business/economics-blog/2016/apr/07/helicopter-money-is-closer-than-you-think

04/11/2016 Helicopter money is closer than you think Extra consumer spending could kickstart economic recovery – in a perfect world http://www.theguardian.com/business/economics-blog/2016/apr/07/helicopter-money-is-closer-than-you-think

04/11/2016 Bernanke says so-called helicopter money could work http://www.marketwatch.com/story/bernanke-says-so-called-helicopter-money-could-work-2016-04-11

04/11/2016 ECB seeks to mollify Germany after dispute over 'helicopter money' http://www.reuters.com/article/us-ecb-policy-germany-idUSKCN0X81GF
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
Re: "Helicopter Money" Is 12-18 Months Away
« Reply #7 on: July 07, 2016, 06:56:41 PM »
Something Big Is Coming: Bernanke To "Secretly" Meet With Kuroda; "Helicopter Money" On The Agenda
7 July 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-07-07/something-big-coming-bernanke-secretly-meet-kuroda-helicopter-money-agenda
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
Re: "Helicopter Money" Is 12-18 Months Away
« Reply #8 on: July 10, 2016, 08:33:03 PM »
Russell Napier Reveals The "Only Question That Matters For Global Investors"
10 July 2016
, by Russell Napier - ERI-C (Zero Hedge)
http://www.zerohedge.com/news/2016-07-10/russell-napier-reveals-only-question-matters-global-investors

Now only one question matters for global investors --- Wo ist der Hubschrauber? (Where is the helicopter?).
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
Re: "Helicopter Money" Is 12-18 Months Away
« Reply #9 on: July 11, 2016, 04:22:03 PM »
"Something Big" Indeed Came - Bernanke's Japan Visit Unveils "Helicopter Money", Sparks Monster Rally
11 July 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-07-11/something-big-indeed-came-bernankes-japan-visit-sparks-monster-rally-after-helicopte
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
Re: "Helicopter Money" Is 12-18 Months Away
« Reply #10 on: July 12, 2016, 01:00:13 PM »
Here Is What Ben Bernanke Told The Bank Of Japan
12 July 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-07-12/its-official-bernanke-urges-japan-unleash-helicopter-money

Koichi Hamada, a close adviser of the prime minister, said Mr. Bernanke may have discussed helicopter money with Japanese officials he met with during his visit, including BOJ Gov. Haruhiko Kuroda and Ministry of Finance policy makers. Hamada, a Yale University professor, attended Tuesday’s meeting with Bernanke and Abe.

And just like that, the final phase of monetary policy - incidentally a very familiar one to the Weimar Republic - is about to begin, with helicopter money first coming to Japan, to be tried out as a trial balloon, and then everywhere else.



Stockman Rages: Ben Bernanke Is "The Most Dangerous Man Walking This Planet"
12 July 2016
, by David Stockman - Contra Corner (Zero Hedge)
http://www.zerohedge.com/news/2016-07-12/stockman-rages-ben-bernanke-most-dangerous-man-walking-planet
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
Re: "Helicopter Money" Is 12-18 Months Away
« Reply #11 on: July 13, 2016, 03:46:59 PM »
Fed's Mester Says Helicopter Money "The Next Step" In US Monetary Policy
13 July 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-07-13/feds-mester-says-helicopter-money-next-step-us-monetary-policy
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
Re: "Helicopter Money" Is 12-18 Months Away
« Reply #12 on: July 14, 2016, 03:12:06 PM »
US Futures, Global Markets Storm Higher As More Details Emerge About Japan's "Helicopter Money"
14 July 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-07-14/us-futures-global-markets-storm-higher-more-details-emerge-about-japans-helicopter-m

"Soon" And "Really, Really Crazy": Starting Up The Helicopters
14 July 2016
, by John Rubino - Dollar Collapse  (Zero Hedge)
http://www.zerohedge.com/news/2016-07-14/soon-and-really-really-crazy-starting-helicopters

Stocks Soar Most Since 2011 Fed Rescue As Bernanke's Masterplan Is Unveiled
14 July 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-07-14/stocks-soar-most-2011-fed-rescue-bernankes-masterplan-unveiled

Helicopter Money - The Biggest Fed Power Grab Yet
14 July 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-07-14/helicopter-money-biggest-fed-power-grab-yet

"It's Prohibited By Law" - A Problem Emerges For Japan's "Helicopter Money" Plans
14 July 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-07-14/big-problem-emerges-japans-helicopter-money-plans

What Is Helicopter Money? Goldman Explains
15 July 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-07-15/what-helicopter-money-goldman-explains
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
Re: "Helicopter Money" Is 12-18 Months Away
« Reply #13 on: July 17, 2016, 07:27:59 PM »
Deutsche Bank Loves Helicopter Money: Why "Big Inflation Is Coming... But Will First Require A Crisis"
17 July 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-07-17/deutsche-bank-loves-helicopter-money-why-big-inflation-coming-will-first-require-cri
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
Re: "Helicopter Money" Is 12-18 Months Away
« Reply #14 on: July 26, 2016, 01:01:58 PM »
Forget Helicopter Money, Helicopter Coupons May Work, OECD Says
26 July 2016
, by Zoe Schneeweiss (Bloomberg)
http://www.bloomberg.com/news/articles/2016-07-26/forget-helicopter-money-helicopter-coupons-may-work-oecd-says

- Policy makers have responsibility to fuel growth, Mann says

- OECD Chief Economist Mann comments in Bloomberg TV interview
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
Re: "Helicopter Money" Is 12-18 Months Away
« Reply #15 on: September 07, 2016, 04:35:30 PM »
Barclays Highlights "Conundrums Of A Policy Maker" - Helicopter Money Only Option Left
7 September 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-09-07/barclays-highlights-conundrums-policy-maker-helicopter-money-only-option-left
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
Re: "Helicopter Money" Is 12-18 Months Away
« Reply #16 on: October 01, 2016, 05:40:21 AM »
Helicopter Money Will Ignite A “Bonfire Of Our Remaining Liberties”
30 September 2016
, by Sean Corrigan - True Sinews (Zero Hedge)
http://www.zerohedge.com/news/2016-09-30/helicopter-money-will-ignite-bonfire-our-remaining-liberties
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
Re: "Helicopter Money" Is 12-18 Months Away
« Reply #17 on: October 20, 2016, 11:13:07 PM »
David Rosenberg Calls For A Multi-Trillion, "Helicopter Money" Stimulus Package
20 October 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-10-20/david-rosenberg-calls-multi-trillion-helicopter-money-stimulus-package
->>>|:-) THE CITY INDIANS (-:|<<<-

Offline Letsbereal

  • Moderator
  • Member
  • *****
  • Posts: 58,616
  • Know Thyself
Re: "Helicopter Money" Is 12-18 Months Away
« Reply #18 on: November 22, 2016, 05:32:33 PM »
Helicopter Money Has Arrived... And Nobody Noticed: Here's Why
22 November 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-11-22/helicopter-money-has-arrived-and-nobody-noticed-heres-why
->>>|:-) THE CITY INDIANS (-:|<<<-