PBOC Cuts Reserve Requirement By 0.5%, Joins 15 Other Central Banks Easing In 2015

The currency (devaluation) war is going full-scale,

http://www.zerohedge.com/news/2015-02-04/pboc-cuts-rserve-requirement-05-joins-15-other-central-banks-easing-2015

In Shocking Move, ECB Cuts By 10 Bps, Sends Deposit Rate Further Into Negative Territory

Negative yields translate to a subtle form of bail-in, where depositors/account holders are taxed for parking their money.  Negative yields also completely dismantle the capital asset pricing models, rendering future valuation and risk assessment as useless.  As a result, asset bubbles are forming globally, and the concept of "riskless return" is obsolete.

Economics textbooks have to be re-written, as we live in a financial world which is upside down--literally.  These "extraordinary" monetary interventions are unprecedented and will no doubt end in tears.

http://www.zerohedge.com/news/2014-09-04/shocking-move-ecb-cuts-10-bps-sends-deposit-rate-further-negative-territory

Demand for food stamps soars as cuts sink in and shelves empty

America, home of the poor and hungry...but hey, it's all good as the prices of trophy real estate, rare art, diamonds, and stock markets are all soaring, right?

What Americans don't realize is the Fed's "stimulative" policies are enriching only the rich, while the rest of the economy is suffering.  Printing money out of thin air doesn't stimulate the economy.  It only deepens our country's debt problems.

http://www.theguardian.com/world/2013/dec/24/food-stamps-programmes-cuts-working-americans-texas

Biggest Banks Face Moody’s Cuts as U.S. Support Ebbs

The media and Obama are telling us the economy is recovering, jobs are being created, stock markets are at all-time highs, real estate is recovering, and the banking system is recapitalized.

Not so fast--even Obama-apologist Bloomberg News is revealing things are not so rosy with the banking system.  The economic cheerleaders will be proven wrong--again.

http://www.bloomberg.com/news/print/2013-08-22/moody-s-mulls-downgrade-of-biggest-banks-as-u-s-support-wanes.html

The Federal Deposit Insurance Corp.’s favored approach for winding down banks in a crisis, known as single-point-of-entry, may lead to higher recoveries for bondholders by keeping operating units open, Fanger said. Firms may be required to hold a minimum amount of debt, which also could help recoveries because losses would be spread among more investors, he said.

There would be “more bondholders to share the burden,” Fanger said.

"Losses spread among more investors" is code-speak for depositors will also take a haircut.

What Can We Cut to Balance the Budget

http://youtu.be/asRDOhgN70Q