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Central bankers withdrawing global liquidity

grip

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Central bankers debate risks of withdrawing global liquidity

What's happening in all these emerging markets from big players like China, Japan, Europe, Russia and India to South Korea, Mynamar, Indonesia, and Mexico is that they're losing capital due to investors pulling their money back and import countries not buying their products from lack of wages, credit and jobs. All the liquidity and credit flowing from the central banks has been into businesses buying up their debt that aren't spreading wealth with wages, benefits or jobs but rather they're either saving cash, increasing dividends or raising executives salaries.

Between 2014-16 we're going to see a credit crisis and inflation rate with dramatic changes because the foundation of the world's economies, the middle class are getting screwed. They're being turned into the working poor or pushed into welfare-foodstamp situations and being called lazy bums by people who by the grace of providence haven't fallen yet.

UPS, which grosses 14 billion a quarter and shows a supposed Net of 1 billion is cutting spousal healthcare coverage for 15,000 of its employees. They're only saving 60 million a year and it's this kind of bottom line frugality that's killing this Nations retail purchasers (workers) ability to spend. The board members, executive officers and shareholders of UPS aren't going to recycle that extra 60 million back into the economy it's going to sit in their investment portfolio's.

UPS drops health benefits for 15,000 spouses. An Obamacare bellwhether?

UPS profit tops forecasts, sees 2012 growth | Reuters
 

joG

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Central bankers debate risks of withdrawing global liquidity

What's happening in all these emerging markets from big players like China, Japan, Europe, Russia and India to South Korea, Mynamar, Indonesia, and Mexico is that they're losing capital due to investors pulling their money back and import countries not buying their products from lack of wages, credit and jobs. All the liquidity and credit flowing from the central banks has been into businesses buying up their debt that aren't spreading wealth with wages, benefits or jobs but rather they're either saving cash, increasing dividends or raising executives salaries.

Between 2014-16 we're going to see a credit crisis and inflation rate with dramatic changes because the foundation of the world's economies, the middle class are getting screwed. They're being turned into the working poor or pushed into welfare-foodstamp situations and being called lazy bums by people who by the grace of providence haven't fallen yet.

UPS, which grosses 14 billion a quarter and shows a supposed Net of 1 billion is cutting spousal healthcare coverage for 15,000 of its employees. They're only saving 60 million a year and it's this kind of bottom line frugality that's killing this Nations retail purchasers (workers) ability to spend. The board members, executive officers and shareholders of UPS aren't going to recycle that extra 60 million back into the economy it's going to sit in their investment portfolio's.

UPS drops health benefits for 15,000 spouses. An Obamacare bellwhether?

UPS profit tops forecasts, sees 2012 growth | Reuters
The central banks were able to counter the 2008 crisis relatively well. They can not correct the real economy problem of government overspend. That can only be done by government. The problem is that it will mean a significant reduction in spending and an increase in taxes. This will probably mean a recession. Obama does not want to go an that note because the Democrats would be kicked out. So he has let the thing fester.
 

CalGun

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Credit crisis? Really?

Have you seen the Fed Reserves liquidity chart. I've posted it before. Look it up on the St. Louis Feds web site. We've increased liquidity a 100% in 20 years prior to 09 and then 400% after that. Liquidity will not by the crisis inflation likely will be as wages increase, energy costs double, health care costs soar and interest rates finally bounce off the bottom.


Central bankers debate risks of withdrawing global liquidity

What's happening in all these emerging markets from big players like China, Japan, Europe, Russia and India to South Korea, Mynamar, Indonesia, and Mexico is that they're losing capital due to investors pulling their money back and import countries not buying their products from lack of wages, credit and jobs. All the liquidity and credit flowing from the central banks has been into businesses buying up their debt that aren't spreading wealth with wages, benefits or jobs but rather they're either saving cash, increasing dividends or raising executives salaries.

Between 2014-16 we're going to see a credit crisis and inflation rate with dramatic changes because the foundation of the world's economies, the middle class are getting screwed. They're being turned into the working poor or pushed into welfare-foodstamp situations and being called lazy bums by people who by the grace of providence haven't fallen yet.

UPS, which grosses 14 billion a quarter and shows a supposed Net of 1 billion is cutting spousal healthcare coverage for 15,000 of its employees. They're only saving 60 million a year and it's this kind of bottom line frugality that's killing this Nations retail purchasers (workers) ability to spend. The board members, executive officers and shareholders of UPS aren't going to recycle that extra 60 million back into the economy it's going to sit in their investment portfolio's.

UPS drops health benefits for 15,000 spouses. An Obamacare bellwhether?

UPS profit tops forecasts, sees 2012 growth | Reuters
 

washunut

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Central bankers debate risks of withdrawing global liquidity

What's happening in all these emerging markets from big players like China, Japan, Europe, Russia and India to South Korea, Mynamar, Indonesia, and Mexico is that they're losing capital due to investors pulling their money back and import countries not buying their products from lack of wages, credit and jobs. All the liquidity and credit flowing from the central banks has been into businesses buying up their debt that aren't spreading wealth with wages, benefits or jobs but rather they're either saving cash, increasing dividends or raising executives salaries.

Between 2014-16 we're going to see a credit crisis and inflation rate with dramatic changes because the foundation of the world's economies, the middle class are getting screwed. They're being turned into the working poor or pushed into welfare-foodstamp situations and being called lazy bums by people who by the grace of providence haven't fallen yet.

UPS, which grosses 14 billion a quarter and shows a supposed Net of 1 billion is cutting spousal healthcare coverage for 15,000 of its employees. They're only saving 60 million a year and it's this kind of bottom line frugality that's killing this Nations retail purchasers (workers) ability to spend. The board members, executive officers and shareholders of UPS aren't going to recycle that extra 60 million back into the economy it's going to sit in their investment portfolio's.

UPS drops health benefits for 15,000 spouses. An Obamacare bellwhether?

UPS profit tops forecasts, sees 2012 growth | Reuters
You start the thread talking about central bank liquidity and then go on to talk about corporate greed.

Do you have a coherent point?
 

grip

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The central banks were able to counter the 2008 crisis relatively well. They can not correct the real economy problem of government overspend. That can only be done by government. The problem is that it will mean a significant reduction in spending and an increase in taxes. This will probably mean a recession. Obama does not want to go an that note because the Democrats would be kicked out. So he has let the thing fester.
In 2008, when emerging markets last tried to stop the outflow of funds, they failed despite spending up to 20 percent of their foreign currency reserves.


Credit crisis? Really?

Have you seen the Fed Reserves liquidity chart. I've posted it before. Look it up on the St. Louis Feds web site. We've increased liquidity a 100% in 20 years prior to 09 and then 400% after that. Liquidity will not by the crisis inflation likely will be as wages increase, energy costs double, health care costs soar and interest rates finally bounce off the bottom.
If there's an inflation rate crisis who the hell will be able to afford credit?
The growth slowdowns being experienced in those markets have forced investors to look more carefully at the structural problems that are facing those particular economies, especially India and Brazil.

You start the thread talking about central bank liquidity and then go on to talk about corporate greed.

Do you have a coherent point?
If you can't see a correlation between the two, then you might want to reread about the TARP bank bailouts of 2008? That was all about Wallstreet investors and corporate greed. Who's been buying all those troubled assets? Where do you think investors get their money, corporate profits?
 

Kushinator

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If there's an inflation rate crisis who the hell will be able to afford credit?
Not the most compelling response given the relationship between inflation and income growth. Inflation expectations are incompletely and nowhere a monetary phenomenon.

The growth slowdowns being experienced in those markets have forced investors to look more carefully at the structural problems that are facing those particular economies, especially India and Brazil.
O....K

If you can't see a correlation between the two, then you might want to reread about the TARP bank bailouts of 2008? That was all about Wallstreet investors and corporate greed. Who's been buying all those troubled assets? Where do you think investors get their money, corporate profits?
TARP was about injecting capital into a banking system that was on the break of insolvency. Nothing about corporate greed and the sort.
 

grip

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Not the most compelling response given the relationship between inflation and income growth. Inflation expectations are incompletely and nowhere a monetary phenomenon.
The average consumer buy houses, cars, school loans and small business loans on credit. If inflation shoots the rates up into the double digits again like in the 70's it will stifle the economy even more.

TARP was about injecting capital into a banking system that was on the break of insolvency. Nothing about corporate greed and the sort.
Who do you think owns the banks and corporations, poor people? What do you think caused the need for TARP, average people or greedy investors? Actually both but the investors are the ones who got help from the banks.


Maybe I didn't make this clear enough. The monthly $85 billion bond purchases of crap assets by the FED flooding banks with liquidity has been going into emerging markets as capital.

Slumping currencies and inflation risks in emerging markets are adding pressure on central banks to raise interest rates. As the investors start to stampede out of these markets we'll see global deleveraging. Higher rates in turn would hit consumers in countries where cheap mortgages and easy credit have fueled housing booms.

The reason all this capital isn't floating the global financial bubble is because there's no spending from the bottom. China built high end, ghost cities with nobody able to afford living in them. And the masses can't make increased purchases without an increase in wages, incomes and employment. And the corporate fiscal policies are to cut benefits, cut wages, cut employees, hire temps and increased production thru technology and fear because it makes short term quarterly profits. They're like lemmings all copying each other on how to be cheap, greedy dirtbags.

I went to buy a new car and the salesman came back to me and said "what's up with your credit?" And I said what do you mean I have good credit. And he said "I've never seen in my last 20 years selling anyone with no dings on their credit." I thought that was normal to not have repo's or defaults, not exceptional. People are losing credit worthiness, income increases, no savings or pensions and using more and more Welfare out of necessity.

The governments have always protected the Markets and investors from serious economic reverberations. And I don't disagree that this is a necessary policy evil that we have to uphold our financial infrastructure, especially since it's on a global scale of inter-connectivity. The fundamental flaw with this concept comes in when the potentates focus too much on the top and don't provide any relief or inflow to the middle/lower levels of the economic wheel. The top 1% are like the brains of our society and play an important role but they forget to feed the body sometimes leaving them separated and dying a slow death from physical disrepair.

Cash is food and if you don't feed the body the brains will die. As the credit (substitute food) begins to dry up because investors can't get enough return, rates will soar and cash will be king. The gov won't be able to use their credit clout this time to back up the massive debt bubble about to recirculate. It's the same one that they re-inflated in 2008 and never did deal with properly.

Emerging markets in turmoil - Jun. 12, 2013

Capital Flows Back to U.S. as Markets Slump Across Asia - Bloomberg
 

cpwill

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We you talk of central banks, this the bank of central banks.

Bank for International Settlements
You are the first person I have seen other than myself ever bring that up.


This is being coordinated. By an institution with the ability to control the worlds' money supply. For Profit. :lamo ..... :surrender
 
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WCH

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Kushinator

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The average consumer buy houses, cars, school loans and small business loans on credit. If inflation shoots the rates up into the double digits again like in the 70's it will stifle the economy even more.
The situation that occurred in the 1970's is highly unlikely to occur again. The public works projects of OPEC's largest members (think Saudi Arabia, UAE, Qatar, etc...) are dependent upon oil revenues. Their finance ministries will never risk the potential turmoil that can arise from a massive drop in revenue. Globalization works both ways.

Who do you think owns the banks and corporations, poor people? What do you think caused the need for TARP, average people or greedy investors? Actually both but the investors are the ones who got help from the banks.
It is more complicated than you make it out to be.

The monthly $85 billion bond purchases of crap assets by the FED flooding banks with liquidity has been going into emerging markets as capital.
Really? Because last i checked, the U.S. still has a net capital inflow (annual) of around $295 billion. Furthermore, there is no statistical significance with respects to emerging market economies experiencing net inflows as a result of U.S. monetary policy.

I am not even convinced you understand the nature of your own argument.
 
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