{"id":3372,"date":"2014-12-21T20:38:49","date_gmt":"2014-12-22T01:38:49","guid":{"rendered":"http:\/\/olduvai.ca\/?p=3372"},"modified":"2014-12-21T20:38:49","modified_gmt":"2014-12-22T01:38:49","slug":"the-global-monetary-reset-is-under-way-zero-hedge","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=3372","title":{"rendered":"The Global Monetary Reset Is Under Way | Zero Hedge"},"content":{"rendered":"

The Global Monetary Reset Is Under Way | Zero Hedge<\/a>.<\/p>\n

The Global Monetary Reset is under way, but people have not noticed it yet.<\/strong>\u00a0The key is the move to zero interest rates.<\/em><\/p>\n

Government debt almost everywhere is too high to ever pay off, let alone pay a traditional rate of interest on.\u00a0\u00a0As debts come due, including as bond issues mature, the only option governments have is to roll over the debt and accumulated interest, and the only way they can afford to do that is if money printing is a continued practice and interest rates are at or near zero.<\/strong>\u00a0 QE is the latest name for money-printing, inflating the amount of currency available.\u00a0 Logically, QE dilutes the value of a currency by inflating the number of currency units in circulation, and, theoretically, should lead to price inflation.\u00a0 However, if all nations engage in monetary expansion, the effects of money printing on exchange rates may be effectively concealed by a balance of expansion.\u00a0\u00a0Or, as in the case of the US dollar, a currency with the status of world reserve currency may be expanded with relative impunity by the nation creating that currency, effectively exporting its inflation to the rest of the world that continues to sell to that nation, or trades in a monetary system based on that currency<\/strong>. Injections of QE into an economy with weak fundamentals is likely to result in speculative bubbles as QE funds show up in investors’ hands and not in the hands of general consumers.<\/p>\n

Inflation has become a necessary element of economic life according to the mainstream meme of economists.\u00a0\u00a0Inflation is a key strategy in coping with immense and increasing debts.<\/strong>\u00a0 Debt so large that it cannot be paid must be inflated away or governments must default.\u00a0 Deflation makes current debt increasingly difficult to pay or service out of deflating GDP and tax revenue.<\/p>\n

<\/p>\n

<\/a><\/a>…click on the above link to read the rest of the article…<\/span><\/span><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The Global Monetary Reset Is Under Way | Zero Hedge. The Global Monetary Reset is under way, but people have not noticed it yet.\u00a0The key is the move to zero interest rates. Government debt almost everywhere is too high to ever pay off, let alone pay a traditional rate of interest on.\u00a0\u00a0As debts come due, […]<\/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],"tags":[2070,2069,1389,2071,1939],"class_list":["post-3372","post","type-post","status-publish","format-standard","hentry","category-economics","tag-monetary-reset","tag-monetary-system","tag-nirp","tag-reset","tag-zirp"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3372","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=3372"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3372\/revisions"}],"predecessor-version":[{"id":3373,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3372\/revisions\/3373"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}