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Economical situation 2020 (Corona)
#1
The Federal Reserve has announced $ 1500 billion in interventions. To give you an idea, the FED's full annual budget was less than $ 1000 billion for 2008.

And that $ 1500 billion is just the beginning. They're going to flood us with cash.

We are currently experiencing a deflationary shock similar to the 1930s.

The main difference with the 1930s is that central banks were tied hands and feet to the gold standard at that time. We do not know this limitation today anymore, which means that money can be printed to your heart's content.

And they will print! Thousands and thousands of billions of dollars!
Central banks in Europe and other countries will follow this example,

So the deflation we see today (and the value of our investments plummeting) is rather temporary, I suspect.

Compare it to 2008. Even then precious metals initially went down… and then bottomed first and made new highs there.

Silver went from $ 17 to $ 8 ... then rose to $ 50.

Gold went from $ 1000 to $ 750 ... and spurted to $ 1900.

And GDX went from $ 53 to $ 15… and hit $ 63.

I believe crypto is going the same way.
What is this thing that builds our dreams, yet slips away from us?

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#2
Could be that crypto will do the same but it doesn't look that way for now
Cardano is the most promising 3 gen. crypto right now.


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#3
(2020-03-15, 04:23 PM)Carsten Wrote: Could be that crypto will do the same but it doesn't look that way for now

Of course not. To soon.
What is this thing that builds our dreams, yet slips away from us?

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#4
You could be right https://cryptopotato.com/5-reasons-why-b...risis/?amp
Cardano is the most promising 3 gen. crypto right now.


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#5
Sadly the crash continues......
Cardano is the most promising 3 gen. crypto right now.


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#6
Cash is king I think! In a small crisis then hold on to your investments but in a bigger crisis then you need cash. If I sell toilet rolls and pasts, I will accept cash, nothing else (this is the articles thoughts).

So if cash really is still king, and investments are just pretenders to the throne, we need to rank the pretenders in order of importance. I think gold and crypto rank higher than stocks and shares normally, but depending on which stocks and which cryptos!
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#7
(2020-03-16, 02:15 PM)BobBobert Wrote: Cash is king I think!  In a small crisis then hold on to your investments but in a bigger crisis then you need cash.  If I sell toilet rolls and pasts, I will accept cash, nothing else (this is the articles thoughts).

So if cash really is still king, and investments are just pretenders to the throne, we need to rank the pretenders in order of importance.  I think gold and crypto rank higher than stocks and shares normally, but depending on which stocks  and which cryptos!


Cash is not the king  these days. Cash is filled with all sort of things and shops are recommending NOT to use cash to avoid contamination. Wireless cards and phones are the recommended way of payment.....that's damn close to paying with crypto in my book.
Cardano is the most promising 3 gen. crypto right now.


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#8
(2020-03-15, 10:09 PM)Carsten Wrote: You could be right https://cryptopotato.com/5-reasons-why-b...risis/?amp

Nice article.
It more or less tells what I am trying to tell.
What is this thing that builds our dreams, yet slips away from us?

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#9
(2020-03-16, 05:43 PM)Hugues Wrote:
(2020-03-15, 10:09 PM)Carsten Wrote: You could be right https://cryptopotato.com/5-reasons-why-b...risis/?amp

Nice article.
It more or less tells what I am trying to tell.

Yes let's see if this is the bottom
Cardano is the most promising 3 gen. crypto right now.


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#10
Bazooka makes no impression

The Federal Reserve emerged with a mega injection on Sunday before markets opened.

QE4 is being launched and the central bank will purchase bonds worth $ 750 billion. In addition, interest also goes to 0%.

By comparison, in 2008 the US banking sector was saved by $ 750 billion.

It is the second time in a week that the Fed has taken action. Earlier, $ 1,500 billion was pushed into the system through the repo market.

The reaction of the market? The Dow Jones fell just under 3,000 points, down 13%. The decline was the largest in points ever, in percentage terms only Black Monday was even worse.

The market is not at all impressed by the bazooka brought up here.

At the FED, they should panic slightly. Much of the spice was faded.

Repos, QE and interest at 0%.

And the stock market drops 13%!

If Powell wants to fire a fire balance on the market again, he better make sure it's with the heaviest artillery possible.

You can expect an intervention of several trillion dollars. (thousands of billions)

That is the only thing that still has a chance at the moment. But don't forget:

“Unfortunately, a global pandemic is one of the few things that cannot be solved with money. When people are at home, they hardly contribute to the economy.

Economic stimulus does little to improve the situation here. You can't get those people out the door, and iunder todays circumstances this is a good thing. Isolation is the only way to stop spreading. ”

Meanwhile, bankrupt governments have also taken heavy action.

Where savings have been made everywhere in recent years, emergency plans ranging from tens to hundreds of billions of euros are now being launched.

Everything and everyone has to be saved and we all think it is the most natural thing in the world.

Boeing asked for state aid yesterday. In recent years, they have repurchased $ 100 billion in treasury shares, and now they no longer have the resources to survive a crisis.

I would just like to say that there is enormous public support for spending unlimited resources to deal with this crisis.

Where should this money come from? Governments are still deeply in debt and actually don't have the space at all.

The answer is then quite obvious: central banks will simply print this.
What is this thing that builds our dreams, yet slips away from us?

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