The Engine is Leaking and It's Bad for Your Money
"If your car's engine is leaking oil, it's not a good thing if you have to put more oil back in."
"That's what all the central banks & governments are trying to do; make up for trillions in lost lubricant."
Even to a novice, you can tell that there's a problem with your engine if you find dark stains beneath your car.
The smell of thick, bitter unpleasantness makes you think twice about driving it.
This presents a difficult dilemma. It's now likely that the engine could overheat but you choose to ignore it and wait for a secondary sign.
...like most people.
The longer you ignore, the worse it can become - to the point that an oil leak burns through the entire system, seize up and cease to function.
You could incur permanent damage to your vehicle.
But still, you're waiting for the dashboard oil pressure warning to light up.
As a stopgap measure, you can add more oil if the signs of leaking exacerbates.
Most engines require between three and seven litres of the lubricant. Should you find that it needs an additional litre to get back up to even, this would indicate a serious problem. Two or even three litres?
Big trouble.
An oil leak could burn through the entire system.
Thus, the more oil you add, the more concerned you should be.
No matter how much oil you try to put back, you're not creating a surplus of oil for your engine.
The real problem lies elsewhere.
This analogy as alluded by Jeffrey Snider who considers central bank's 'money printing' to the tune of trillions is the same sort of situation as an engine that's already missing a huge amount of lubrication.
The Dollar is the grease behind the globalized economic and financial wheel.
It's the oil that fuels the global economy.
True to form, the driver a.k.a. The Federal Reserve (Fed), ignored the rancid swap smell, the overheated curves, and the visible smoke emanating from the money markets.
Even when the dashboard warning light came on way back last September, those in charge elected to react a different way.
Then the engine nearly blew itself up in March.
This is how you should view the Fed’s balance sheet from the most charitable point of view. The central bank isn’t adding more money to a static system already filled with it; like our engine analogy, they're frantically trying to replace what has already leaked out. The more they put in, the more the balance sheet is expanded, the more you know must’ve gone missing.
It’s a warning, not a solution.
Again, that’s giving bank reserves more credit than they deserve. A better analogy would be one where the Fed tries to put back a far less efficient and useful kind of lubricant to replace the highly effective, dynamic motor oil which had oozed and then catastrophically flooded out of the global engine.
And none of which solves the original problem – the leak.
This is where we are right now.
You can read the article here: The Global Engine is Still Leaking by Jeffrey Snider.
Punished for being prudent with money
When central banks can easily mark up the size of the entire money supply by $1,500,000,000,000 dollars, they're stealing our buying power.
Yes. $1.5 trillion injected into the financial system by changing digits on a computer screen.
The average income is what, $50,000? Nobody with an average income of $50,000 or $100,000 has a functional frame of reference for a number like 1.5 trillion.
$1.5 TRILLION is the equivalent of spending a Dollar every SECOND for the next 47,465 YEARS...
Can you imagine?
I can't imagine going through blood, sweat and tears just to build my online business and being responsible with my money only to have some entity steal from right under my nose.
...and some people work their entire lives to to fulfill value for some of that number.
What do the banks and their cronies had to do to receive a cut of that stimulus?
None of their actions have boosted the real economy.
All they've done is boosted the stock market. Enrich the 1% of the 1%.
That’s why it’s called fiat.
Money for the poor, wealth for the rich.
$1.5 trillion get printed out of thin air right in front of us and given to Wall Street. With a click of a mouse.
$1.6 trillion is the entire net worth of the bottom half of America if you were wondering how fucked up that number is.
Not only that, more is yet to come...
The Federal Reserve to print $6 Trillion
European Central Bank to print €1.1 Trillion
People's Bank of China to print ¥2.8 Trillion
Bank of England to print £200 Billion
Bank of Korea to print ₩11.7 Trillion
Bank of Japan to print ¥12 Trillion
Central banks will do, what central bankers will always do.
When faced with any crisis, the knee-jerk reaction is to print more money. because that’s the only thing they know how to do to fix a pandemic.
"Only problem is, all this stimulus only works if the economy is OPEN. Else, you are giving electric shock to a patient who’s already dead.”
It’s also the reason why Robert Kiyosaki is now endorsing Bitcoin.
“The reason I endorse bitcoin is just for one freaking reason: you’re not part of the system,” said Kiyosaki in conversation with Anthony Pompliano, Morgan Creek Digital co-founder and the host of Pomp Podcast.After discovering some of the events
What happens when you begin to lose faith in the economy?
You short the market.
You short it by opting out. Or do the things that would hedge against a total collapse.
These are called options. Or better known as a "schmuck insurance."
An alternative. A decentralized, borderless, neutral, censorship-resistant payment system that’s instant and trustless.
What's more you can store your money in a pen-drive like device that only you can access.
It's also sure-fire way to grow your networth 10X, 100X or even a 1000X within the decade.
In a time of money printing, stay-at-home orders and degradation of civil liberties, Bitcoin looks better and better.
Bitcoin seems like the perfect hedge against the very things we are witnessing is not an accident.
The reason Bitcoin has the properties that it does is due to its inception and history.
There will come a day where banks would go obselete.
And we would be free to transact without a middle man (bankers).
Bitcoin is the equalizer we've been waiting for!
Stay safe. Buy Bitcoin. HODL.
Vires In Numeris