{"id":21337,"date":"2016-07-03T15:08:59","date_gmt":"2016-07-03T20:08:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21337"},"modified":"2016-07-03T15:08:59","modified_gmt":"2016-07-03T20:08:59","slug":"when-government-controls-all-wealth","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21337","title":{"rendered":"When Government Controls All Wealth"},"content":{"rendered":"
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When Government Controls All Wealth\u00a0<\/a><\/h3>\n<\/div>\n
Sliding Into Absurdity<\/strong><\/div>\n
\n

BALTIMORE \u2013 Stock markets continued their rebound on Wednesday. The Dow rose 284 points\u2026 or just over 1.5%. London\u2019s FTSE 100 Index was up 3.6%. And Europe\u2019s equivalent of the Dow, the Euro Stoxx 50, was up 2.7%.<\/p>\n

\"brexit-2\"No wonder the Dragon and his partners in crime flooded the EU banking system with \u201cmoney\u201d this past week\u2026<\/p>\n

Investors have realized Brexit isn\u2019t the end of the world. First, because they think it won\u2019t really happen.\u00a0After all, elites can fix elections, buy politicians, and control public policy\u2026 surely, they can fix this!<\/p>\n

A letter in the\u00a0Financial Times\u00a0reminds us that Swedish voters cast their ballots against nuclear power in 1980. The government just ignored them, doubling nuclear power generation over the next 36 years.<\/p>\n

Second, because investors see the panic over Brexit leading to more spirited intervention by central banks! The EZ money floodgates \u2013 already wide open \u2013 are to be opened wider.<\/p>\n

The U.S. has its QE program on hold, but Europe\u2019s scheme is gushing like Niagara. Mario Draghi at the European Central Bank buys $90 billion a month in bonds. And he\u2019s not only buying government bonds; he\u2019s buying corporates, too.<\/p>\n

Less Than Zero<\/strong><\/p>\n

In Japan, always a trendsetter, the Bank of Japan has bought so many bonds it has pushed Japanese government bond yields below zero \u2013 out to more than 45 years on the yield curve!<\/p>\n

In other words, you can now lend to the bankrupt Japanese government until 2051 with no hope of making a single yen, nominally, on your investment. Now, with bonds stacking up in their vaults, the Japanese feds are diversifying. They\u2019re buying exchange-traded funds (ETFs), too.<\/p>\n

\"JGB\"<\/a>JGB weekly over the past 5 years\u2026.still<\/em>\u00a0a widow-maker! \u2013 click to enlarge.<\/p>\n

Via its ETF purchases, the BoJ buys about $30 billion of Japanese stocks a year. This has made it a top 10 shareholder in about 90% of the companies listed on the country\u2019s Nikkei 225 Index.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

When Government Controls All Wealth\u00a0 Sliding Into Absurdity BALTIMORE \u2013 Stock markets continued their rebound on Wednesday. The Dow rose 284 points\u2026 or just over 1.5%. London\u2019s FTSE 100 Index was up 3.6%. And Europe\u2019s equivalent of the Dow, the Euro Stoxx 50, was up 2.7%. No wonder the Dragon and his partners in crime […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,6],"tags":[5728,6190,14028,279,284,8262,379,661,662,2443,868],"class_list":["post-21337","post","type-post","status-publish","format-standard","hentry","category-economics","category-liberty","tag-acting-man","tag-bill-bonner","tag-brevet","tag-eu","tag-european-union","tag-financial-times","tag-government","tag-qe","tag-quantitative-easing","tag-stock-markets","tag-wealth"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21337"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21337\/revisions"}],"predecessor-version":[{"id":21338,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21337\/revisions\/21338"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}