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Shanghai Huatong Platinum Silver Trading Center, telephone recruitment for member agent account opening, high rebate for investment, Shanghai Huatong Platinum Silver Platform Information rb criticized the growing major central banks and their hegemonic position in the market and other central banks. He said negative interest rates and central bank balance sheets are weapons of mass destruction and called for an end to the use of negative interest rates.
rb said that due to the implementation of negative interest rate policy, the banking industry loses millions of Swiss francs every year. Worse still, central banks will eventually lose credibility in the markets, although this may take a decade or more, ending in a big crash. The end result will be the nationalization of wholesale finance, after which all banks will belong to the state.
rb expressed great doubts about the statement that only the central bank's injection of trillions of liquidity can prevent the world from falling into a New Year's-style Great Depression. This is to say that without the central bank's large-scale capital injection, we will sink. This economic understanding of the worst-case scenario since 2001 is a typically utopian socialist one, meaning endless government debt.
He also talked about the relationship between central banks and politics, believing that we have now entered a world of unprecedented political polarization. After the financial crisis, politicians took control of the banking sector. They imposed such heavy regulatory measures on the banking industry that banks are now unable to move. Politicians are telling central banks that now you decide how the economy goes. It can be said that politicians now control the world almost entirely through monetary policy.
As for the impact of this power transfer, rb believes that previously, risks were spread to tens of millions of banks. They had to pay for their mistakes and shareholders borne the risks. Today, the state increasingly takes risks. In other words, the state is the taxpayer. The next one to fall is not commercial banks, but the central bank.
rb finally concluded that economic recession is sometimes necessary to eliminate the old and innovate.
Regardless of whether what rb said is too extreme, the consequences of political polarization have begun to be highlighted in the market. The market's political sensitivity to the central bank's speech has far exceeded the economy itself. Just like the U.S. interest rate hike, although the Federal Reserve said it would Maintain its independence, but the politics of Trump's election have affected the exchange rate market and expectations for interest rate hikes. The risk is no longer borne by the banking industry, but more by the entire national economy.
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