If you are going to write an article like this, you might at least tell the 99# of us who never heard the term what “helicopter money” is, preferably in the opening paragraph.
Ben Bernanke is one of the most dangerous men walking the planet. In this age of central bank domination of economic life he is surely the pied piper of monetary …
_____________________________________
Helicopter money is monetary policy so loose, so profligate, so reckless that you might as well throw money out of a chopper to everyone.
It is basically giving money away to various groups as direct ‘stimulus’.
In Japan the central bank has printed Yen and purchased all the sovereign (national) debt. They then moved on to the bond market and bought up all the bonds (we are headed there). They ran out of those so they have been purchasing all the public stock. The central bank is printing money and buying everything. They will own large amounts of everything. With a currency that means nothing.
The only step left is helicopter money.
This is happening all over the world. All the Western countries are kicking the can farther down the road than anyone dreamed would happen. They are all racing each other to see which one can devalue their currency first - which will ease their massive, unpayable, debt obligations. All of this is going to make the resulting correction catastrophic.
I doubt we go more than 12 months more without a currency crisis. The party is over and the bill WILL be paid.
Silver and lead is right.
“Helicopter money has been proposed as an alternative to Quantitative Easing (QE) when interest rates are close to zero and the economy remains weak or enters recession.
Economists have used the term ‘helicopter money’ to refer to two very different policies. The first set of policies emphasizes the ‘permanent’ monetization of budget deficits.
The second set of policies involves the central bank making direct transfers to the private sector financed with base money, without the direct involvement of fiscal authorities. This has also been called a citizens’ dividend or a distribution of future seigniorage.
The idea was made popular by the American economist Milton Friedman in 1969 and reinforced in contemporary times by former Federal Reserve chairman Ben Bernanke.”