On March 4, 2016 it was reported that Barack Obama said that the U.S. economy is "pretty darn great right now," and those saying the economy is bad is living in an "alternate reality," and engaging in "fantasy."
The Bank of International Settlements (BIS), known as the central bank of all central banks recently warned that the uneasy calm of previous months had given way to turbulence and a "gathering storm."
"We may not be seeing isolated bolts from the blue, but the signs of a gathering storm that has been building for a long time,” BIS chief Claudio Borio warned.
The concluding paragraph from the BIS March 6, 2016 release states "Underlying some of the turbulence of the past few months was a growing perception in financial markets that central banks might be running out of effective policy options. Markets pushed out further into the future their expectations of a resumption of gradual normalisation by the Fed. And as the BoJ and ECB signalled their willingness to extend accommodation, markets showed greater concerns about the unintended consequences of negative policy rates. In the background, growth remained disappointing and inflation stubbornly below targets. Markets had seemingly become uncertain of the backstop that had been supporting asset valuations for years. With other policies not taking up the baton following the financial crisis, the burden on central banks has been steadily growing, making their task increasingly challenging."
We have to ask Obama is the BIS is also living in an "alternate reality?"
Financial Times and The Week are reporting that banks are becoming so desperate they are floating the idea of "Helicopter Money," which refers to the "the nuclear option of monetary policy."
It might soon start raining cash, said David Oakley at the Financial Times. With the global economy slowing dramatically and few signs of a turnaround on the horizon, a radical proposal has been gathering steam in central banks around the world: Print money and give it directly to the public in order to boost spending and growth. The concept of "helicopter money" was coined several decades ago by the late economist Milton Friedman, who likened it to stimulus by means of dropping cash from the sky. Advocates of the policy argue that central banks have largely exhausted their options for stimulating growth — namely, quantitative easing and extremely low interest rates — and that desperate times call for desperate measures. Central banks in Japan and Europe, they point out, have already taken the once unthinkable step of slashing interest rates below zero. But helicopter money is arguably an even more extreme solution to stagnant growth — "the nuclear option of monetary policy."
"Is this an idea whose time has come, or is it just monetary voodoo?" asked Jeremy Warner at The Daily Telegraph. Billionaire Ray Dalio, founder of the world's biggest hedge fund, is among the cheerleaders. He argued last month that helicopter money will boost consumer spending by injecting money "directly into the veins of the real economy." But count me among the unbelievers. In all likelihood, the positive effects of a one-off gift would wear off without addressing "any of the underlying causes of today's economic torpor." Central banks would also be tempted to keep printing cash for more drops, a kind of permanent "Christmas bonus" that would lead people to question the value of their money. "Much as we would all like to believe in the free lunch, there is, regrettably, no such thing."
We need to ask Obama if having to consider the "nuclear option of monetary policy," out of "desperation" indicates that the economy is "pretty darn great?"
Moody’s Investors Service recently reported the tally of the least-creditworthy companies rose by 10 to 274 this month, pushing it nearer to April 2009’s record 291. (Source- WSJ)
That is just the tip of the iceberg from February- March 2016 headlines and news and Obama thinks the U.S. economy is "pretty darn good"?
BOTTOM LINE
While Alternative News sites have been hammering relentlessly at how the economy has been spiraling towards a major downturn, the MSM has been painting a picture with rose-colored glasses, but even they have now started reporting the true scope of the economic chaos as well as admitting it isn't happening out of nowhere but has been a "gathering storm," which could lead to "Financial Apocalypse," which leads us to believe that contrary to Obama's assertions, it is he who is living in an "alternate reality."
[Update] Additional link submitted by The Daily Bell via email with a note "Adds an important view - Titled "Central Banking Conspiracy Now Involves Canadian ‘Basic Income’"
