Finance and Stuff

Thoughts on finance and other stuff by Johan Lindén

Inflation? Deflation? Financiation?

So what has happened lately in finance? Where is all the money going?

Federal Banks all over the world have printed money in true Keynesian style to counteract a falling economy.

In Europe, the European Central Bank, lent banks half a trillion for a mere 1% interest. It is basically the same blues that has been sung for the last couple of years and it is still going strong. I guess it ain’t over until the fat lady sings.

So where is this money ending up and why does not price indexes for goods and services increase?

Well, because a few people in the financial sector is taking all this money and are making themselves very rich. Think of it, you pay 1% interest, and the inflation is around 2-3%. So by just avoiding losing money you will make money with this ingenious system created by politicians and bankers.

If the market would have set the interest instead of politicians, would it be as low as 1%? Is all risk really calculated in that 1%? Now that is a ridiculous thought!


Stocks vs. Long and Short-term Bonds


Sentiment Getting Too Bullish


  1. Good writing. Right on spot.
    Se also
    where I discuss what impact demography has on spending.

  2. J

    Men…penningmängden minskar i USA och Europa..Ngt som många vägrar att inse.

    Varför, helt enkelt pga multiplikatorn i banksystemet slutat fungera då utlåningen dött. Det är där de flesta pengar “tillverkas” så först när konumtion och investeringar kommer igång igen kommer penningmängden att öka och först då får vi antagligen se inflation också.

    Så att det “trycks” pengar betyder inte att de blir “mer” pengar i systemet.

    Mvh J

    (gissar du är svensk så därför skrev jag på svenska)

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