Germany's largest Bank says a form of Basic Income may be needed to keep the global economy growing - GoFuckYourself.com

wehateporn · 07-26-2016, 05:33 PM

DEUTSCHE BANK: Here's how helicopter money could send stocks flying

The introduction of helicopter money ? directly dropping cash into the economy ? in Europe would give shares in the continent's biggest companies a boost, according to the latest research from analysts at Deutsche Bank.

In their weekly European Equity Strategy note, stock analysts led by Sebastian Raedler argue that if central banks on the continent, or further afield, decide to introduce so-called monetary financing, it will boost stocks by helping to support growth and bump up inflation expectations.

The term helicopter money was first coined by American economist Milton Friedman in the 1960s. The basic principle is that central banks create new cash and give it directly to people to spend on whatever they want.

Here's the quote from Friedman that coined the phrase: "Let us suppose now that one day a helicopter flies over this community and drops an additional $1,000 in bills from the sky, which is, of course, hastily collected by members of the community."

For decades, helicopter money has remained as more a thought experiment than a viable policy. But, with negative rates and chronic low growth confounding central banks, the idea is picking up credibility, with Deutsche the latest bank to suggest that it could have legs as a means of stimulating the economy.

Here is the key quote from the team at Deutsche (emphasis ours):

"After years of tight fiscal / easy monetary policy in the developed world, there is hope among investors that both Japan and the UK might be close to embarking on central bank-financed fiscal easing. We believe that such monetary financing (or helicopter money) could be a significant positive for equity markets, as it has the potential to support growth, helps to close the global output gap (which has effectively been stagnant at around 2% of global GDP for the past five years) and push up inflation expectations, a key driver of the equity market."

Continued Sorry!

TrafficTitan · 07-26-2016, 05:41 PM

Dumbest fucking thing I ever heard. No wonder Europe is going in the dumps if they even consider this.

Vendot · 07-26-2016, 07:05 PM

Quote:

Originally Posted by TrafficTitan

Dumbest fucking thing I ever heard. No wonder Europe is going in the dumps if they even consider this.

This has been on the table for the last few years.... and its being SERIOUSLY discussed. As I said previously, there are no other options because the world economy is collapsing.

Janus's Bill Gross: 'Helicopter money' is coming in a year or so | Reuters

wehateporn · 07-26-2016, 07:10 PM

When I play Monopoly, I get 200 for passing Go, but I normally still end up bankrupt

blackmonsters · 07-26-2016, 08:03 PM

Quote:

Originally Posted by TrafficTitan

Dumbest fucking thing I ever heard. No wonder Europe is going in the dumps if they even consider this.

Plenty of people believe the Obama stimulus money saved economic collapse in America.
We are too busy playing politics to get one answer on the question though.
I think it saved a lot of people from living in the streets and helped small business continue to earn close to normal revenue instead of closing.

https://en.wikipedia.org/wiki/Americ...nt_Act_of_2009

Bladewire · 07-26-2016, 08:14 PM

The banks have FUCKED the world this generation, any money given belongs to the fucking people in the first place. Interest on student loans, bank fees, late fees 25% interest rate credit cards. High risk fees, high risk percentage rates. Scam of the populace gross profits so people can transact all banks should be belong to the people not enslave them.

ITraffic · 07-26-2016, 08:23 PM

better late than never.

The Abolition of Work--Bob Black

07-26-2016, 05:33 PM	#1
wehateporn Promoting Debate on GFY Industry Role: Join Date: Apr 2007 Posts: 27,173	Germany's largest Bank says a form of Basic Income may be needed to keep the global economy growing DEUTSCHE BANK: Here's how helicopter money could send stocks flying The introduction of helicopter money ? directly dropping cash into the economy ? in Europe would give shares in the continent's biggest companies a boost, according to the latest research from analysts at Deutsche Bank. In their weekly European Equity Strategy note, stock analysts led by Sebastian Raedler argue that if central banks on the continent, or further afield, decide to introduce so-called monetary financing, it will boost stocks by helping to support growth and bump up inflation expectations. The term helicopter money was first coined by American economist Milton Friedman in the 1960s. The basic principle is that central banks create new cash and give it directly to people to spend on whatever they want. Here's the quote from Friedman that coined the phrase: "Let us suppose now that one day a helicopter flies over this community and drops an additional $1,000 in bills from the sky, which is, of course, hastily collected by members of the community." For decades, helicopter money has remained as more a thought experiment than a viable policy. But, with negative rates and chronic low growth confounding central banks, the idea is picking up credibility, with Deutsche the latest bank to suggest that it could have legs as a means of stimulating the economy. Here is the key quote from the team at Deutsche (emphasis ours): "After years of tight fiscal / easy monetary policy in the developed world, there is hope among investors that both Japan and the UK might be close to embarking on central bank-financed fiscal easing. We believe that such monetary financing (or helicopter money) could be a significant positive for equity markets, as it has the potential to support growth, helps to close the global output gap (which has effectively been stagnant at around 2% of global GDP for the past five years) and push up inflation expectations, a key driver of the equity market." Continued Sorry! __________________ Sexy Girls Teasing

07-26-2016, 07:10 PM	#4
wehateporn Promoting Debate on GFY Industry Role: Join Date: Apr 2007 Posts: 27,173	When I play Monopoly, I get 200 for passing Go, but I normally still end up bankrupt __________________ Sexy Girls Teasing

07-26-2016, 05:41 PM	#2
TrafficTitan Confirmed User Industry Role: Join Date: Nov 2012 Posts: 350	Dumbest fucking thing I ever heard. No wonder Europe is going in the dumps if they even consider this.

07-26-2016, 08:14 PM	#6
Bladewire StraightBro Industry Role: Join Date: Aug 2003 Location: Monarch Beach, CA USA Posts: 56,229	The banks have FUCKED the world this generation, any money given belongs to the fucking people in the first place. Interest on student loans, bank fees, late fees 25% interest rate credit cards. High risk fees, high risk percentage rates. Scam of the populace gross profits so people can transact all banks should be belong to the people not enslave them.

07-26-2016, 08:23 PM	#7
ITraffic Confirmed User Industry Role: Join Date: Jul 2013 Posts: 2,725	better late than never. The Abolition of Work--Bob Black