Keynesians will keep pumping cash into this half dead system, from the top down. Funny how some people get bent out of shape and throw "trickle down" around like it's a dirty phrase, yet this is the biggest trickle down scam of all.
Governments allow trillions to be created by the world's central banks, which get pushed out to the member banks, and so forth, because helping them, is helping us. Or that's the theory.
Except the banks themselves are infused with so much paper, from the top down, that's it's distorting priorities and decisions that are supposed to be market based.
What need does a bank have for the public's deposits when governments and central banks are going to pump trillions into their ledgers?
Because a contraction was not allowed to happen, mal investors never punished, the haze was never allowed to clear. We have no clear signals, nor direction. The central banks, the member banks, the large multinational banks, the regional and local banks, they're all supposed to be competing with each other, but since they are being propped up to varying degrees, there is no clarity, the stronger banks have no clear data that the mal investors have been removed from the market, and no clear data that rock bottom has been hit or is near, so they have no confidence in making long term investments, or even medium term ones, they will not invest in businesses or infrastructure, because even though all of them are propped up, they are still in competition with each other, except these days, it's liquidity and balance sheet competition, none of those institutions knowing for sure how long the game can go on. So what do they do? They take their paper and gamble with it, in short term, massive 50-to-1 and higher bets, on the various markets, distorting futures, stocks, bonds, derivatives, any and all paper assets.
The banks care little about the public's money. They have an unlimited supply from the public's government. The banks will just keep playing balance sheet games, gambling like addicts in Las Vegas, with all their paper manipulation, and buy up real assets from desperate countries and the people, with their invented wealth.
