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1/Savers are not preparing for recessions but opportunities to grow income and contribute to society’s forward momentum.

Yet the ECB has again positioned savings as a recessionary scapegoat.

Christine Lagarde: Image
2/Savers don’t increase spending to consume. They invest and thereby kickstart an economic recovery much faster than a populace that has nothing saved at all!
3/Central banks befuddled by their own “mandate” have neglected the most powerful monetary policy tools: encourage savings and let interest rates set themselves.
4/Yet they will continue to pursue the fallacy of negative interest rates and drive the economy into exhaustion. Ben Bernanke has signaled as much.

bloomberg.com/opinion/articl…
5/And perhaps @RayDalio is correct and we have entered the Roaring 20’s with an epic 1929 crash in sight. Or the economy crashes “up” creating vast wealth and wealth acquisition inequalities leading to widespread social disruption.
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More from @ObiWanKenoBit see all

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O₿iWan
@ObiWanKenoBit
1/A thread of threads.

The decade closes. Over the last 10 years central banks have coordinated the largest transfer of wealth in modern history. The next decade promises deeper social reconstruction lead by CB policies - QE, UBI, MMT, NIRPs, CBDCs, and more.
2/The surveillance state has grown. A cashless federal banking system offers unprecedented insight into individual behavior and the power to suppress thoughtful resistance to government overreach.
3/This is why Bitcoin matters. It is the counterweight to the state’s increasing institutionalization of every facet of our lives. Below are my 2019 threads exploring these themes.
Read 17 tweets
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O₿iWan
@ObiWanKenoBit
0/Bitcoin proposes a deep reworking of our economies framed by separation of money from state. Bitcoin rejects fiat, introduces a new paradigm radically realigning our relationship with money. This is why #bitcoin matters. Read on⤵️
1/Fiat is political money backed by the force of law and violence. It is created at will and makes up the walls of a global economic prison.
2/It has no inherent cost of production outside of the effort to protect its position once created. And from “0” it is able to extract rent and subjugate the public.

Ben Bernanke on “printing money.”

Read 17 tweets
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O₿iWan
@ObiWanKenoBit
0/Bitcoin is better money. It does not rely on appropriated authority. Bitcoin is the sum of all our unique, individual actions working against a fiat fueled, credit crazed world. Why is this important? Read on ⤵️ #bitcoin
1/Fiat monies need little to no input from the public at large. They prohibit the public from participating in determining its issuance, value and utility. As a debt instrument, fiat is a socioeconomic liability that zeros out accrued value.
2/This passive/static relationship with money allows politicians and bankers to effortlessly issue money at will. They then excise enormous amounts of “rent” from these baseless monies. A domineering, entrenched class of fiat elites holds the public in thrall.
Read 15 tweets

Related threads

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Tuomas Malinen
@mtmalinen
I've written on this few times before, but I just cannot help it.

It's truly strange how analysts and economists keep making predictions about "stable growth", while we've been in constant state of central bank induced bailouts for over two years.

Why the complacency? 1/
The first two bailouts are not generally acknowledged, but they were important.

In November 2017, the BoJ and PBoC stopped the rout in the junk bond ETF:s that threatened to spread to the asset markets.

This went mostly unnoticed, like the following bailout. 2/
@GeoffCutmore
In March 2018, the #ECB was forced to bailout European corporate debt markets that became clogged due to over-issuance, as corporations were preparing for the end of QE and rise in interest rates.

The BoJ also participated by increasing its stock ETF purchases. 3/
@oliviabvoz
Read 10 tweets
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Marcel Fratzscher
@MFratzscher
Populism Germany style: “When saving makes you poor: zero interest rates are destroying the wealth of Germans.”

Today’s cover of @DerSPIEGEL , Germany’s most important weekly magazine.

The lead article is less biased, but is it responsible to further feed populist sentiment?
Germany is sliding into a dangerous anti-Europe, anti-ECB hysteria, which threatens to damage the ECB‘s credibility, the euro and ultimately all of Europe.

It is high time for an honest dialogue and for exposing the 20 German myths about #ECB monetary policy:
20 German myths about ECB monetary policy:

Myth #1:
The ECB alone is responsible for low interest rates.

Fact: interest rates are the results esp. of high savings and low investment, esp. in Germany. Governments have a big impact on interest rates via investment and growth.
Read 23 tweets
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Joumanna Bercetche
@CNBCJou
#ECB thread

Here's what analysts are expecting:
1) Majority expect 10bps rate cut to -50bps (minority 20bps cut)
2) Tiering
3) Restart of Asset Purchases : sov +corp bonds of EUR 30bn x 12 months (risk of LESS given recent hawkish commentary)
4) Enhanced Fwd Guidance
1) rate cuts

The interest rate mkt is expecting 50% probability of a 20bp cut (or 15bps priced in for Sep) and another ~10bps in December, troughs at 34bps cuts next summer

Rate cut to 1/ target EUR & 2/ extra kicker for TLRO3 which starts in Sep 3/ stimulate credit demand
But whether stimulating credit demand leads to pick up in nominal growth is questionable-chart from Citi below

@LHSummers recently called negative interest rate policy 'black hole economics' because marginal positive is offset by counterproductive side effects incl misallocation
Read 12 tweets
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Positive Money Europe
@PositiveMoneyEU
Tomorrow the European Parliament will host a hearing with Christine @Lagarde, in order to confirm her appointment as #ECB president. Ahead of the session, Lagarde answered 70 questions from MEPs - we read them all so you don't have to. THREAD👇europarl.europa.eu/meetdocs/2014_…
1/ On the positives: Lagarde wants the #ECB to make climate change a priority. She committed to ensure the ECB plays an active role in the @NGFS_ and, "as soon as such a taxonomy is agreed, the ECB will need to assess whether and how it can apply it to QE."
2/ However @Lagarde is obstinate to follow the business as usual "market neutrality" approach of the #ECB in Corporate QE. We're still wondering how mirroring markets in portfolios is consistent with the need to cope with market failures and create new investment incentives. 🤔
Read 8 tweets
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Henrik Zeberg
@HenrikZeberg
#ECB is likely to crash EUR in attempt to stimulate EU-economy🤦‍♂️(incompetence in ECB is staggering!). Wait for waterfall moment in #EURUSD. Currently flirting with LT-trendline. Target 0.85-0.91 #HZupdates
Major drop in #EURUSD will send #USD #DXY soaring (following pot. ST weakness). LT-target for DXY is >111. This is likely to be the trigger for REAL Fed intervention, which will push economy out of Deflation #HZupdates
Rally in #USD will push #Gold (#XAUUSD) into major decline in final wave C, which will take yellow pet rock below 1000 USD. Imo no way that structure of rally since 2015 is new Bull market. It is ZigZag-correction topping ~1480 (here!) or ~1590 (-1600). Major Bull trap #HZupdates
Read 8 tweets
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pippocamminadritto
@guado77
riprendiamo questo discorso...
la "comica" corsa delle HFT firms ad avvicinarsi quanto più possibile ai server del CME (futures exchange)...
datacenterknowledge.com/cyrusone/cyrus…
...se parlate di mercati, cari i miei governanti, almeno cercate di conoscerne la struttura...ancora con il "floor"
6 maggio del 2010...la Grecia è al centro dell'attenzione mediatica mondiale e da li a poco la #ECB inizierà a comprare debito greco via SMP... ma quel giorno verrà ricordato come la massima espressione dei "fake markets" moderni, dominati dagli algos HFT
cnbc.com/video/30003772…
Read 120 tweets

Trending hashtags

#Shy #ECB #cable #Repo #Brazil #LIBOR #cleanair #GilletJaunes #France #Bankitalia #Brexit #Ether #MedicareForAll #auto #tariffs #NAAM #ActeXXV #Bundesbank #TAIWAN #India #WhitePaper #BoJ #TradeWars #Climate #eurusd
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