That’s it - see below. Money is now free. Expect people and businesses to demand government meets wage demands and losses. Governments may offer this directly through the tax and social system or indirectly through the banking system. Expect a massive bounce in equities and bonds everywhere. But what of the next few weeks and months. Will people want to go back to work? Will people question why they cannot continue to get free money from the government. People will realise that under this fiat system that governments can print money at no financial cost - only a long term social cost of anarchy.
The financial system as we know it will collapse. In time, gold will rise as governments realise fiat money is no way to run an economy.
Fed Announces Coordinated Action With Bank Of Canada, Bank Of England, Bank Of Japan, European Central Bank And Swiss National Bank— LiveSquawk (@LiveSquawk) March 15, 2020
-Six Global Central Banks Have Agreed To Lower Pricing On U.S. Dollar Liquidity Swap Arrangements By 25 Bps