Cross Border Fake Helicopter money Unlike Real HM.

Donald Trump can tax American corporations who make products outside the US for sale in the US. But Donald Trump should not have to engage in a messy and dangerous trade war with Germany and China. Those trade wars would accomplish one thing, causing US goods to be cheaper as a weaker dollar would offset some tariff action by those two currency manipulators. But there are other ways of leveling out the playing field.

Germany manipulates currency by being in the Eurozone. If it didn't have the Eurodollar, its products would be more expensive as exports to the US. And China, which is still growing, likely still has a currency that is undervalued based on its economic clout and size versus the world. There is a solution, and some have said it is already in existence. But maybe it just looks like helicopter money.

Helicopter Money is a much easier way to increase the money supply, put more money in the hands of Americans and lower the dollar some, so that our products would be cheaper in Germany and in China. As product prices increase in the US, the extra money would allow US consumers to spend.

Unionization would likely be fierce if no helicopter money is issued. While unionization is going to be with us as long as Donald Trump brings business back home, it is likely to be less unsettling in an atmosphere where the base money is with the people.

Tyler Durden reported a cross border helicopter money that is spoken of by Jim Reid. This is how the Deutsche Bank strategist explains the "post-Trump" flow of funds:


The main driver of 2017 will again be policy and we’re left with an intriguing combination where the US will likely implement serious fiscal stimulus but without Fed QE supporting it whereas Europe will have no meaningful fiscal stimulus but lots of QE. Japan is a hybrid as it will have monetary policy that easily allows for more expansionary domestic fiscal policy but without clear evidence – at the moment at least – that we’ll deviate too far from the status quo. However there is some evidence to suggest that we’ll effectively have cross border helicopter money.
Well, it looks to me like this so called helicopter money is sterilized. This is not real helicopter money. What the central banks give out in one nation, they take back in another nation. While helicopter money can include government stimulus, it is not Friedman HM. You have to question if this HM is putting money into the hands of regular people.

It does appear that interest rates were all rising at the same time. Insiders likely knew that some form of stimulus was occurring, cross border. This helicopter money triggered speculation, if nothing else.

  

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