WMD” also is “Wasteful Monetary Devastation.”
WASTEFUL: We all know that governments spend money in wasteful ways and compensate with higher taxes, deficits, huge debt, “printed currencies” and inflation.“Bridges to nowhere,” various wars, and “giveaways” benefit a few at the expense of many.
MONETARY: Printing and digitally creating many trillions of dollars, euros, yen, or pounds may temporarily bail out banks and governments but in the big picture they destroy capital and weaken the economies of the nations which are deluding themselves.
DEVASTATION: Overwhelm governments, corporations, and individuals with debt, cut interest rates, devastate pension returns, punish savers, trash economies, blow more unsustainable bubbles, drink another bottle of delusion, and announce, “mission accomplished.”
From John Rubino regarding negative interest rates in Europe and now Japan:
“This is a resounding admission of failure.Over the past seven years the world's central banks have cut interest rates to levels not seen since the Great Depression and flooded their banking systems with newly-created currency, while national governments have borrowed unprecedented sums (in the US case doubling the federal debt).Yet here we are in the early stages of a global deflationary collapse.Commodity prices have followed interest rates to historic lows, while growth is anemic and may soon be nonexistent.”
Flooding banking systems with newly created currencies and massively increasing debt are wasteful uses of monetary resources.The consequences of such nonsense are devastated global economies – as they fall deeper into a global deflationary collapse.
Commodity indexes are at 40 year lows, the Baltic Dry Index is at an all-time low, and over $5 Trillion in government debt yields “negative interest” (crazy) and debt is spiraling out of control – global debt exceeds $200 Trillion (even crazier).
