Since the last week of October, a large number of central banks have reduced interest rates, thus joining the massive synchronization of monetary easing around the world. This year, more than two dozen banks have resorted to easing tactics and over the past two weeks, central banks from the following countries: Costa Rica, Hong Kong, Saudi Arabia, Bahrain, United Arab Emirates, Kuwait, Brazil, Indonesia and Georgia have joined the party to lower rates. .
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World Central Banks join forces to launch the longest easing cycle of the decade
Massive monetary easing continues around the world, but central banks are still in a panic. A huge synchronization and the longest easing cycle of the decade are ahead of us, as central banks everywhere try to turn around the world economy. At the time of writing, 37 developed central banks are participating in a form of recovery. Whether it is to reduce interest rates, to participate in overnight pensions or to print massive amounts of fiat, all central banks are at the rendezvous. Some of the big players like the US Federal Reserve want the mainstream media to lie and say that what is happening is not really another form of quantitative easing (QE). However, what central banks are currently doing is expanding their monetary easing policies and participating in large-scale free market operations. The most accurate definition of these processes would be to call current QE regimes but central banks are not honest.
When news.Bitcoin.com began reporting on the large number of developed central banks involved in easing tactics, there were about 19. A few weeks later, this number was then raised to nearly two dozen central banks, reinforcing different forms of recovery. Today, 37 central banks around the world have increased their money supply and many of them have joined the softening club over the past two weeks. For example, on October 30, Costa Rica's central bank lowered key rates to 3.35 percent and cited a lack of economic growth. In the same week, Saudi Arabia, the United Arab Emirates, Bahrain and Kuwait also lowered their benchmark interest rates. The Hong Kong Monetary Authority (HKMA) also lowered its base overnight rate by 25 basis points on October 30th. On the same day, the US Federal Reserve lowered rates again for the third time this year.
In what appeared to be a part of the rate cut, Brazil joined the Fed and reduced benchmark interest rates to 5%. Brazil has also stated that inflation problems could encourage them to continue to relax its mechanisms in the near future. About seven days ago, Chile and Georgia changed their interest rates on October 23. Chile cut rates by 2% to 1.75%, while the Georgian central bank raised its refinancing rates from 7.5% to 8.5%. Georgian central planners changed rates twice the previous month due to higher percentages of annual inflation. In addition, even though the People's Bank of China (PBoC) lowered the one-year lending rate (LPR) by five basis points on September 20, the economy in China still seems bleak.
China plans banking, redemption of bonds jumped and restructuring
For example, many small financial institutions in China are in trouble and there have been at least two recent races on rural lenders. Social media rumors that some small banks might fail triggered the banking operations. Then, for some unknown reason, Guangdong Nanyue Bank ignored the reimbursement of its local level two bonds. There are more than 3,000 small banks in China struggling against a lack of cash and bad debts. Many spectators believe the Chinese government will resort to "mergers and restructurings". The Baoshang Bank Co., based in Inner Mongolia, had already been taken over by the communist government because of bad practices and credit risks.
There are a lot of interesting things in the global economy right now, and in addition to the central planners trying to fix the situation, there are uprisings everywhere. Massive protests took place in Argentina, Venezuela, Indonesia, the Netherlands, France, India, Russia, Hong Kong, Chile, Lebanon, Peru, Haiti, Egypt, Syria and in many other countries. Demonstrations and people walking the streets result from the disparity of wealth that afflicts the citizens of the world. A place where the bureaucrats and the cartel of the banks eat bread and drink wine while the peasants are left with crumbs.
What do you think of the cascade of rate cuts and monetary easing announced by central banks? Do you think that central banks know what they are doing in terms of monetary policy? Tell us what you think about this topic in the comments section below.
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