Here Come the Money Helicopters!

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The Negative Wealth Effect

By Bill Bonner, Chairman, Bonner & Partners:

Since the start of the year, the Dow is down about 7%. But certain stock market sectors have undergone a much harder pruning. First, energy… then the tech… and now banks. Shares in too-big-to-fail bank Citigroup are down almost 28% so far this year. And shares in Europe’s biggest bank, Deutsche Bank, are down by more than 36%.

As always, we don’t know where this leads.

But as we warned at the start of the year, it could be the beginning of a serious bear market. And more! As Nobel Prize-winning economist Paul Samuelson put it, the stock market has famously predicted nine out of the last five recessions. Further study shows that a stock market plunge of 10% has about a 50% probability of presaging a recession… 100% of the time!

Hope that’s clear.

But a stock market plunge not only predicts trouble in the economy; it also causes it. The Fed’s treasured “wealth effect” – in which investors, seeing the value of their portfolios rise, feel richer and rush out and spend – works in both directions. When stock prices fall, investors pull back on spending, and the economy goes into a cold funk.

The further stocks fall… the more the likelihood that the economy will follow. This has the central planners worried.

Pushing on a String

Here’s the chief economics commentator at the Financial Times, Martin Wolf:

What might central banks do if the next recession hit while interest rates were still far below pre-2008 levels? As a paper from the London-based Resolution Foundation argues, this is highly likely. Central banks need to be prepared for this eventuality.


The most important part of such preparation is to convince the public that they know what to do.

Good luck with that!

The one clear lesson of the last eight years is that central banks either do not know what they are doing… or they know and are intentionally not doing it. For the benefit of today’s Diary, we will give them the benefit of the doubt. We will assume they are incompetent rather than evil.

There is no shame in incompetence, especially when it comes to managing the world economy. We don’t believe any human could do it. So, Yellen et al can hold their heads up. They have failed, but they were on a fool’s errand anyway.

A sharp-eyed reader sent us a quote from the Wall Street Journal. It shows that the mainstream financial press is coming around to our point of view:

The failure of unconventional monetary policy in Japan and Europe is proof that central banks can’t conjure growth in economies that need major reforms to let resources find more productive uses. The old analogy of “pushing on a string” remains valid – if companies can’t find promising investments, credit creation will remain stalled no matter how cheap credit is.

Then there is the comment from governor of the Reserve Bank of India, Raghuram Rajan:

…stimulus doesn’t cut it anymore and, certainly, monetary policy has largely run its course.

And from Sean Yokota, head of Asia strategy at Nordic bank SEB:

Central bankers are running out of things to do.

Hang On to Your Hat

Not according to Mr. Wolf! He lays out the options, prefacing them with remark that letting a correction do its work is out of the question “given the damage it would do to the social fabric.”

(He did not specify what damage a cleansing correction would do; in our view, the social fabric could use a good scrubbing, too.)

One option, said Wolf, would be to “change targets,” allowing for higher levels of inflation. He didn’t elaborate, leaving us wondering how a central bank that couldn’t get annual consumer price inflation to 2% would be able to move it to 3%.

Another option would be the “forced conversion of debt into equity,” which he said would be difficult.

Still another option would be more quantitative easing, which might be provocative.

There is also negative-interest-rate policy (NIRP). But “it is unclear how economically effective [it] would be,” he warned.

What policy does Wolf actually recommend? The nuttiest one, naturally:

A final instrument is “helicopter money” – permanent monetary emission for the purpose of promoting purchases of goods and services either by the government or by households.

If the money went directly into additional spending by government or into lower taxes or to people’s bank accounts, it would surely have an effect. The crucial point is to leave control over the quantity to be emitted to central banks as part of their monetary remit.

For the last eight years, we have seen nothing but absurd and unproductive central bank policies. But hang onto your hat: There are plenty more where those came from! By Bill Bonner, Chairman, Bonner & Partners

They’re all trying to prop up Deutsche Bank. Efforts have even reached German Finance Minister Schäuble who too was trying to soothe nerves. Read…  Banking Crisis in Europe? Deutsche Bank’s CoCo Bonds Collapse

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  49 comments for “Here Come the Money Helicopters!

  1. Debtserf
    February 10, 2016 at 3:31 pm

    Universal basic income?

    • martin
      February 10, 2016 at 5:51 pm

      wouldn’t raising the minimum wage to 20 dollars an hour create new spending which in turn create new jobs and higher tax payments to goverment. instead of giving cheap money to rich and hopeing for trickle down

      • Vespa P200E
        February 10, 2016 at 8:47 pm

        Ahem, Progressive wetdream perhaps?

        Cities with higher min wage have shown very slow job growth?

        Liberals fighting for a dramatic increase in the minimum wage have insisted that there would be a negligible impact on job creation. Though the data are preliminary and overly broad, Washington D.C., Oakland, Los Angeles, San Francisco, Seattle and Chicago seem to be finding out that the reality isn’t so benign.

        A slowdown in job growth can fly below the radar, at least for those who aren’t seeking low-wage work. But the risk of raising the minimum wage too high became fairly obvious last month, when Wal-Mart (WMT) bolted from Oakland and Los Angeles and scrapped plans for two stores in low-income areas of D.C.

        The big shortcoming in the available data for 5 of the 6 cities is that they cover broad metro areas, far beyond the city limits where wage hikes took effect. Still, the uniform result of much slower job growth in the low-wage leisure and hospitality sector, even as the pace of job gains held steady in surrounding areas, sends a pretty powerful signal.

        From D.C.’s Great Stagnation to Chicago Hiring Halved – ther economically rational minimum wage effect of considerably slower job growth is eveident in all of the regions- full details here.

        • John Doyle
          February 10, 2016 at 10:50 pm

          Don’t forget the demographic component. Baby boomers are retiring at 10,000 per day. They reduce spending so there is a hole in the usual spending pattern and it’s not going to improve as these boomers become sellers, thus driving down productivity further. No other cohort has the money to take over the boomer mantle. Deflation is turning into recession, and worse.

        • Salamander
          February 12, 2016 at 5:27 am

          Your’s is a curious framing. To demonstrate the negative impact of an increase in minimum wage, you point to examples in individual municipalities. Hmmm… Might it be different if it were a national minimum wage increase? Where would Walmart go? Do you really believe that such a increase would just move the problem to an international scale? Would Walmart leave the US? For what greener pastures?

          I am so sick of the neoliberal brainwashing. If your worldview is accurate, there should be no minimum wage at all. That would no doubt please our overlords… So we’ll hear this argument forever, no matter the historical precedent.

          How about a thoughtful discussion of the basis of the minimum wage? With what variables should that be calculated? it certainly hasn’t tracked inflation. What’s your ideal? Stagnation until a day’s labor earns one meal and a bunk bed in a camp tent?

      • Arnold
        February 10, 2016 at 9:54 pm


        Blessed be your innocent heart. Raising the minimum wage in the manner you prescribe would indeed make measurable progress in resolving the aggregate demand problem, but workable logic like that has absolutely no part to play in the United States of Kakistocracy, where the ruling kakistocrats are none other than big businesses intent on maintaining market monopoly or oligopoly. Wal-Mart is one of the best, supported in letter and spirit by our very own Vespa P200E.

        • martin
          February 11, 2016 at 7:54 am

          yeah and if you think about it most factories already pay 20 an hour,so those jobs aren’t leaving to china as far as service, construction jobs and others they cant be outsourced either so i don’t think there would actually be a net loss of jobs in country. actually it would spark demand for products cause people would have money to spend and buy stuff creating more jobs and actually make enough money to pay taxes helping the country. we would also get a little needed inflation. people working is better then helicopter money

      • robt
        February 10, 2016 at 10:26 pm

        Job loss, is a function of the increase in the minimum wage. Rescinding minimum wage laws would mean creation of jobs, even returning jobs home that have been lost overseas. Demand for labor would raise wages and provide benefits to attract the best workers.
        Incidentally, the money that rich people have does not go into a hole in the ground, lost forever. It is available for loans to create wealth, by people who have the ability to organize such activity. Even the money rich people spend goes into the economy to create jobs.
        Confiscate wealth and you end up like Venezuela, or Cuba.

        • Baboo
          February 11, 2016 at 12:44 am

          One solution I have that I guarantee will solve the problem of wealth inequality is to transform wealth to debt and vice versa. This policy would not effect people with no debt or wealth. People would want to be like this: no debt and no wealth since the pendulum has been set in motion.


        • night-train
          February 11, 2016 at 3:00 am

          Supply side economics. Greatest and cruelest hoax played on the American people. Just keep on a little longer and we will find ourselves in a Cuba like situation and largely for the same reasons. Sooner rather than later, the masses are going to get a clue. And then it could get really ugly. For this country to work, the majority of the populace must believe that economic opportunity exists for those willing to learn and work hard. We are losing that belief quickly. A sacrificial Madoff or Shkreli won’t suffice to quell the masses.

      • Momi
        February 10, 2016 at 11:20 pm

        Raising minimum wage is no solution. How does a smal business cover this? They would struggle and lay off people.
        Than you have to pay more tax and what is the real gain here.
        I think it’s better to stop the raising of the utility prices, tuition fees, day care cost, property taxes and much more. People would have more money to spend for personel consumption.

      • Genevieve Hawkins
        February 12, 2016 at 1:51 pm

        The problem with the raising minimum wage argument is the same type of problem there was with Obamacare–it addressed who would pay for a failed system while doing nothing to address why prices were so high to begin with.
        The problem is not solved by giving low wage people a 20% wage increase in an area where the rent increases by 50% at the same time, especially if that 20% increase causes the person paying it to cut somebody else’s job or to close up shop.

  2. bill h
    February 10, 2016 at 3:32 pm

    If the people actually got the helicopter money, it would be a better stimulus than anything else they’ve tried (propping up the too big to fails, QE, cash for clunkers, ARRA, etc). Not that I’m for stimulus at all. A good ole global firesale is the only cure for this virus!

    • Jerry
      February 10, 2016 at 4:45 pm

      Sadly, you are very correct. Folks need to be forced by the market into reality. Then true price discovery will take place. What is happening now reminds me of Dutch Tulip Mania where they were paying the same amount for a tulip than they would for a house. Sounds crazy…. but here we are.

      There is NO avoiding the collapse when there has been such a prolonged period of monetary expansion, so we are back to 2000.

      Thank you Wolf for your varied and interesting articles. Since I discovered this website I visit everyday. One of the best.

      • West
        February 10, 2016 at 5:28 pm

        I posit that the only time in the last 20 years that prices were “true” was the period between 12/2008 and 8/2010 prior to QE2, when stocks, housing, and oil were all priced based on fundamentals. Only after QE2 began did prices start rocketing off, with the QE infinity causing the current distortions in housing prices and the massive stock market bubble.

        The Fed is in a tough position – they can’t admit they’ve created the MOAB (mother of all bubbles) and they can’t prick it either without bringing down the other pieces of the economy.

    • Vespa P200E
      February 10, 2016 at 5:55 pm

      Survey taken at the time few years ago when GW gave tax break/credit said most people would sock it away instead of spending it followed by paying credit card debts (I think on pay debts was 2nd reason).

      But again most folks’ reaction was to save and why not since most 99% are reported to be living paycheck to paycheck with pittance for savings not to mention dip into 401k to get by…

      • bill h
        February 10, 2016 at 6:46 pm

        Isn’t that better than giving it to wall street banksters! ?

        • Vespa P200E
          February 10, 2016 at 8:48 pm

          So this is the scenario: helicopter money to 99% – 99% pays down debt or deposits – banksters WIN fattening deposit/capital – banksters buy Treasuries as safe investment – voila $$$ back to the government

          No wonder the banksters love this idea as wealth transfer to banks via indebted serfs!

        • Baboo
          February 11, 2016 at 12:50 am

          The solution is to create a kind of fire department. The fire departments used to go around buying property adjacent to burning buildings at bargain basement prices. Of course, the more property fires the better for these first responders. Fire to these guys is like volatility to an asset trader.

          What we need is a modern day department that puts out the fire, without any crass deal making amid the fire sale.

  3. memento_mori
    February 10, 2016 at 3:51 pm

    Interesting, looks like CAD has bottomed and beign decoupled from oil.
    Is BoC intervening in the exchange market?
    Last time oil was this low, CAD was trading 5 cents cheaper…

    • pilot
      February 10, 2016 at 4:38 pm

      Same for NOK.

  4. Vespa P200E
    February 10, 2016 at 3:53 pm

    One of dumb thing GW did was when he gave tax break/credit few years ago to stimulate the consumer spending. Survey taken at the time said most people would sock it away instead of spending it.

    So this is the scenario: helicopter money to 99% – 99% pays down debt or deposits – banksters WIN fattening deposit/capital – banksters will Treasuries as safe investment – voila $$$ back to the government

    No wonder the banksters love this idea as wealth transfer to banks via indebted serfs!

    • Petunia
      February 11, 2016 at 6:56 pm

      Bush gave the tax credit to people who were working and doing ok because they were still employed. The people with no income or who lost businesses who really needed it got nothing. We were selling our possessions at the time to eat and really could have used help but got nothing. They never give aide to the really needy.

  5. Bruce Adlam
    February 10, 2016 at 4:02 pm

    society needs a good cleansing its to far removed from reality full stop

  6. Julian the Apostate
    February 10, 2016 at 6:36 pm

    Anybody know where I can buy a cheap wheelbarrow with my helicopter money?

    • February 10, 2016 at 7:01 pm

      At Sears, at the final closeout sale.

    • Paulo
      February 10, 2016 at 10:03 pm

      Funny…I just rebuilt a wheelbarrow I had for almost 40 years. It is a construction ‘Erie’. When I bought my first house my Dad took me down to the lumber yard and said, “you can’t own a house without a wheelbarrow. My wife uses his old one for the garden and that one is at least 60 years old…..original tire, no less.

      The best invention ever made as far as I’m concerned. I have poured hundreds of metres of concrete with mone, moved truckloads of gravel and cords and cords of firewood.

      To think, some people pay to go to the gym. :-)

      Buy a good one, Julien…the best one out there. You can leave it to your grandkids!!

      • Toddy
        February 11, 2016 at 11:27 am

        Hey that’s almost like my old Nokia phone from 2002 that I still take on international trips because it actually works everywhere. Original battery, no less :) and holds a charge for several days with normal use.

        They just don’t make phones like that anymore.

  7. ucde
    February 10, 2016 at 8:57 pm

    (free money is my favorite topic so.. ;) )

    Well, you have a system that is based on flows. Hence the word currency, from ‘cursus’ to run or running (or some form of that verb).

    One part of the system is flush with cash and assets, but has a tourniquet on which prevents downward flow (monopolies, price fixing, private lending to prop up asset prices, QE, the stock market itself, speculation markets, options). The other part is starving of cash and assets, but has a high powered hydrolic extraction system placed on top of it, which accelerates flow into the other part (high interest rates, housing bubbles, education bubbles, healthcare, taxes, monopolistic price-gouging and rent-seeking).

    Look at this system and note that parts of this organism are atrophying and dying from lack of circulation. Where does the new blood (money) need to be applied?

    Well… we already tried the top part of the system, you know, the part that is hemorrhaging money into fine art and real estate… we already tried injecting money there…. so what else is left…?

    Hmmmm…. whats the one thing we haven’t tried..?

  8. LG
    February 10, 2016 at 10:03 pm

    It’s not “negative” it’s minus 3.5 growth!
    I wish I’d remember where I just read it.
    Things to come .

  9. Jonathan
    February 10, 2016 at 10:12 pm

    I dunno, maybe humanity on the whole should devote a lot more minds on actual scientific R&D instead of wasting so much human capital on kleptocratic financial engineering or on making the next worthless social networking app/smartwatch and calling it the greatest human achievement ever. People are sick of when there really isn’t any.

  10. Baboo
    February 10, 2016 at 11:53 pm

    The Fed can effect and affect international economic policy by buying McDonalds Big Macs and storing the sandwiches in their vault. This would move would the target the Big Mac Index. Its an important gauge of PPP (purchasing power parity) and is cause/leading indicator of prosperity.

  11. February 11, 2016 at 6:19 am

    The solution to this situation is clear but nobody wants to accept it. You cannot conjure up economic growth with higher minimum wages and you cannot continue to bail out inefficient and corrupt business entities. A person’s level of compensation should be driven by the market demand for his labor. Bad business practices lead to business failure and that is exactly how it should be. When a bank makes bad loans it should suffer the consequences. Nationally, when a country makes bad trade deals (there are plenty of them around) that strip the very middle class jobs required to sustain an economy, it too must pay the consequences. There are multiple structural deficiencies with the US and global economies that are long overdue in being addressed. All the FED and other central banks have done is to kick the can down the road and forestall the eventual day of reckoning. The consequence of this inaction is to make the eventual and unavoidable correction all the worse. There can be no soft landing now. Even if the CB’s are able to side step the painful consequences of their actions this time around the eventual correction will be all the more catastrophic. Consider the man who neglects to treat a cut because he doesn’t want to leave the party. Now imagine that man six months later, fully sober and facing the consequences of his actions. That simple cut, easily treated with a band aid and antibiotic, now warrants an amputation of the arm.

    • Toddy
      February 11, 2016 at 11:38 am

      Right you are. And when a country invades another one without just cause, it should only follow that there will be full bore war.

      I’m quite certain that the thing that will bail the global economy out of its impending rut is going to be a war. Except this time around, it won’t just be armies and their equipment. It will be militia, fighting for access to resources and imposing their various ideologies while others focus on protecting their perceived land rights and family safety.

      Ever watched “Revolution”, the TV show? Best quote there: “you can always count on people doing the selfish stupid thing”.

  12. nick kelly
    February 11, 2016 at 6:43 am

    Agreed- we should not be in a position where QE of any kind is needed.
    But since it is- WHY is putting, say 500 DIRECTLY into all PERSONAL bank accounts (one per person) that have a balance below 10, 000
    WORSE than giving trillions to a banks that in some cases just lent it back to the government and collected the interest?

  13. prepalaw
    February 11, 2016 at 10:03 am

    The simplest stimulus is stratified interest rates:

    All money market accounts up to $1.0 million are credited with 5% annual interest. The governments will take at least 20% in taxes. The remainder is free cash flow – spendable income.

    All persons (not corporations) with no debt and a positive net worth should be allowed to borrow at the same rate as big banks for the purpose of investing in capital projects or improvements.


  14. Christoph Weise
    February 11, 2016 at 10:17 am

    Helicopter money has been at play for a while already: student debt and junk car loans are examples. Helicopter money disguised as debt that will never be repaid.

  15. JayTe
    February 11, 2016 at 11:17 am

    Hey Bill, You don’t even have to wait for it. Finland and now Switzerland are looking to do just that! And it is recommended by that noted MMT star economist Steve Keen! Who would have thought. Martin Wolf and Steve Keen proposing the same policy to save the economy. It will be interesting to see how both of them wriggle out of this one if (when) it goes pear shaped. :-)

    • Toddy
      February 11, 2016 at 11:53 am

      The same way everyone at these kinds of jobs wriggles out of it when they fudged it up. They resign. Or retire. Or plain disappear.

      The actual reality is that nobody knows what’s going on. All these people just show up to work and hope for the best. That’s it.

      The rest is chaos, essentially.

      If it was possible to prosecute individuals in high ranking offices, policies would be much more sensible. Bus since a person can put a corporation between them and the effects of their decisions to avoid any direct accountability, you simply can’t have any sort of balance in the decision making process.

      I watched it first hand yesterday: someone decided to cut staff in a company to save his own job. Afterwards it was plainly evident Quote: “I’m not taking the fall for this. I got two kids. And it’s not like the problems in this division were all my fault.”

      Same exact thing happens at a global scale too: you think anyone would ever ask to hold Rumsfeld personally accountable for his decisions that ended up causing thousands of military personnel to lose their lives?

      If you reduce the global economic rut to a bunch of nerds trying to save their retirement plans, you will quickly realize that there is no genuine solution. No matter what people do, a subset of society will suffer.

  16. chu-teh
    February 11, 2016 at 2:35 pm

    Anyone recall the unused words/concepts “fraud” and “justice”?

    Unfairness/injustice leads to chaos. Kind of a First Principle.

  17. chhelo
    February 11, 2016 at 5:45 pm

    Just have the FED/Treasury pay off or reduce every single family home/condo mortgage in the US as follows:

    1) Fed/Treasury buys all mortgage paper with an outstanding balance of US$500,000 or less.
    2) Pays off all mortgages with a balance of USS$250K or less outstanding.
    3) reduce all outstanding mortgages of US$500K or less by US$250K and refinance the remaining balance at ZIRP.
    3) Above US$500K no help available.

    This way the middle class and lower gets a similar deal handed out to the banks and Wall Street. Banks wind up with the money regardless as it just flows through the system.

    I never understood why they didn’t do this in 2008/9.

    • Petunia
      February 11, 2016 at 7:06 pm

      They did pay off all the mortgages in 2008. They paid off all the bad mortgages so the banks had no loses and then they gave them the houses too. They could have let the home owners keep the houses and they would have unleashed unbelievable spending power. But, they only bailout the well connected, and the taxpayers got nothing.

  18. Thpmas Malthus
    February 11, 2016 at 9:52 pm

    Central bankers are not stupid – nor corrupt – nor incompetent.

    They are magicians.

    Because without the magic tricks since 2008 – we’d be eating boiled rat meat long ago – and lov’in it.

    What am I talking about you will ask?

    Here’s the deal.

    In 2008 oil hit $147. What does $147 oil mean for the economy?

    According to the OECD Economics Department and the International Monetary Fund Research Department, a sustained $10 per barrel increase in oil prices from $25 to $35 would result in the OECD as a whole losing 0.4% of GDP in the first and second years of higher prices.

    For most of the last century, cheap oil powered global economic growth. But in the last decade, the price of oil production has quadrupled, and that shift will permanently shackle the growth potential of the world’s economies.

    So there you have it – the end of growth was upon us.

    Of course the central banks would not just sit back and watch civilization collapse.

    The central banks have been scrambling to do anything – absolutely anything to fight against that.

    Bail outs – QE – ZIRP – loan cash to failing companies to allow them to buy back stock — subprime autos homes — student loans — you name it — if it kept the global economy from collapsing they have done it

    Grow or die.

    Well – as expected – there is no perpetual motion machine — and the toxic side effects of all these seemingly insane policies are poisoning the system

    Total collapse is imminent.

    So no – the central bankers are not incompetent.

    Like Bernanke said when he left office ‘you hate me – but when you one day know why I did what I did – you will thank me’

    That days is fast approaching. Enjoy the last few months (or weeks) of civilization.

  19. Thpmas Malthus
    February 11, 2016 at 9:53 pm

    If my comments are going to be continually put on hold for moderation – I will no longer comment.

    • February 12, 2016 at 1:46 am

      All comments with 2 or more links end up in moderation. If comments exceed a certain length they end up in moderation. Certain key words will send comments to moderation. Sometimes comments end up in moderation for reasons I cannot figure out….

      Also, some comments, when I deem them inappropriate, are deleted or never make it out of moderation.

      And if comments are repetitive … somebody just re-posting the same message essentially over and over again, after about the third time, or the fifth time, or whenever it gets on my nerves, those comments disappear.

      • Thpmas Malthus
        February 12, 2016 at 2:24 am

        I’d suggest lifting some of the restrictions and seeing how it goes. This really disrupts the flow of things

  20. Bill
    February 12, 2016 at 12:18 am

    It’s impossible to have a functioning economy when wall street is glad to just screw everyone insead of directing capital to productive enterprize that adds value to the economy. When the most basic thing like the interest rate ie the cost of credit is manipulated and doesnt reflect the true time value of money. Thats how you get one bubble after another, billions in capital wasted on unproductive enterprize. Not to mention the debt overhanging the economy and the age demographic of the boomers. That giant sucking sound is not yellens helicopter but the air rushing out of the latest bubble.

  21. February 12, 2016 at 10:29 pm

    (Sigh … )

    Central banks cannot make unsecured loans. That means no ‘helicopter money’. The presumed recipients are deadbeats, they have no collateral to offer only their own debts.

    Central banks have no capital structure, only a ‘sheet’ that must be balanced at all times (more or less). They are reserve banks not commercial banks. Their design is to bail out (provide reserves to) troubled commercial lenders not become one themselves.

    When a central bank makes unsecured loans — like the Bank of Argentina has been doing on and off for decades — it becomes another, large insolvent commercial bank. It is underwater for the same reason as all the other insolvent commercial banks => unsecured leverage and non-performing loans.

    Keep in mind, the biggest reason a central bank is be tempted to make unsecured loans is that the commercial sector is ruined. Gresham’s Law can be applied to banks, the bad do indeed drive out the good … !

    When the central bank becomes another commercial bank there is no guarantor for deposits. This leads to bank runs then flight out of the country’s currency. When you see runs out of a currency it means the ‘ordinary Joes’ in that country perceive the central bank making unsecured loans: yuan, euro, peso, peso, rial, rouble, etc. Bank deposits (M2) are ONLY real collateral for (uncollectible) loans made to the deadbeats.

    Central bankers are running scared. Helicopter money isn’t just shooting yourself in the foot, it is cutting off both feet with a chain saw and throwing them into the fire!

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