As I have stated often in the past six years, CASH IS KING.
Why because central bankers have been pumping cheap cash in markets twenty-four-seven over this time period. By cheap cash – meaning straight off of central banks printing press.
Why because they can! It is just that simple people.
China went so far to stabilize its markets to compete with a strong U.S. dollar by giving freshly printed money to Chinese commoners solely to invest in its market. Yea that is right, not even to buy bubble gum while waiting for brokers to confirm stock / share purchases. Well, it worked for about 30 days then Chinese markets began to tumble once again causing China to suspend trading on targeted days to prevent a free for all falling stock market.
Here in the U.S. investors and Banks have been waxing rich the past six years because the Fed (U.S. Central Bank) instituted – “Quantitative Easing” -printing money while keeping interest rates low on the cash they loan to Banks and investment houses. How low – so low – almost zero – low.
Why because they can!
Nope, the U.S. Central Bank did not take the measure of giving U.S. commoner’s cash in hand to invest in the markets like China central bank. It just does not work that way in a democratic society. U.S. Banks filtered the practically free money down to consumers through high-interest rates on loans for consumer goods like cars, boats, credit cards, houses purchases you name it if you took out credit the past six years even at a 4% rate the bank paid almost 0% to 2% on that free cash.
The top 1% to 10% earners in America have made so much money the past six years that if commoners could count in percentage point terms the American society would be experiencing a second “Shay’s Rebellion.” It’s just good old American Greed in the American society when looking at the great gap of inequality between the top 10% and bottom 90% of households in America.
The American economy on the street is so bad only 63% of the adult working Americans own a home. Meaning the AMERICAN WORKER cannot afford to live the OLD American dream of owning a house with a white fence. In addition, those that are able to purchase homes are afraid because hard earned cash does not add up when the “Green Eagle,” fly on Friday’s.
It is just that simple to comprehend people. Hard-earned cash is not as valuable as cheap cash coming straight off America central bank printing press. I cannot explain it clearer and make it simpler to understand.
Is this just the American way “nowadays” of dealing with global economic forces that are on “Auto-Pilot?” Is there a better way for Central Banks to prevent global economic collapses from destroying their nation economies instead of Central Banks printing “cheap cash” to stimulate stock markets and economies?
I answer yes to both questions. The answer is very simple which promises to work and stabilize economies across the globe – Return to placing value in hard earned cash – by providing common people livable wages that keep pace with the rise of inflation ensures hard earned money will remain valuable in our great society. America please return to the day’s when the Eagle Fly on Friday’s, and everyone working looked forward to enjoying their weekends off and having money left over to breeze through the next week coming plus save for rainy days.