General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsGold price fall points to global deflation
The official reason for the historically unprecedented measures being undertaken by the worlds central banksthe injection of trillions of dollars into the monetary system through the purchases of government bondsis that such emergency action is needed to revive the economy. But the inflow of money is not going beyond the confines of the banks and finance houses.
http://www.wsws.org/en/articles/2013/04/17/gold-a17.html
Warpy
(111,256 posts)with the Chinese economy losing steam and confronting a housing crash like ours on steroids, and this country muddling along with austerity-lite, too many dead wood conservatives in both parties still clinging to their seats in both houses of Congress to move this country forward instead of dragging it down.
With the 1% happily grabbing everything that every government on the planet hopes to use to rescue the economy, I see nothing changing any time soon.
There will have to be a claw back. The alternative is revolution.
abelenkpe
(9,933 posts)DJ13
(23,671 posts)If the banksters werent such greedy SOB's there is a solution to that problem.
Start funneling money to the lower classes and watch the spending create some inflation.
Besides, those greedy banksters would still end up with the money anyway, but the circulation of money would prevent deflation.... and the possible depression that would create.
Yavin4
(35,438 posts)bubble. That and bonuses for themselves.
DJ13
(23,671 posts)We would have been out of even a threat of recession/depression long ago if the bulk of stimulus had been targeted at the bottom of the economic pyramid instead of the top.
Sure people would have paid off a lot of their debt doing that, and lots of (rt wing think tank) economists claimed that would be bad, but the banks would have ended up with most of the money that way, while clearing up a lot of accounts in arrears.
Instead they horde the trillions thrown at them, producing nothing, helping no one but themselves.
Yavin4
(35,438 posts)They went to school with them. They have them in their family. They live in the same neighborhoods as they do. Their kids go to the same school.
Fumesucker
(45,851 posts)And the Chinese are buying physical gold at an astonishing rate.