A very interesting article has been written by an Australian broadcaster ABC - Triple J about how Central Banks have not so secretly mobilized a monetary theory has been activated by Central Banks around the world..... essentially by necessity due to having no tools left to save their system.
It's called Modern Monetary Theory. MMT for Short.
Find out how it works here with George Gammon.
MMT is a theory.. that's correct.. Central Banks and Government's are now relying on a THEORY for our economy to survive.
Not Thrive..... Survive.
I'm sure Central Bankers know it doesn't work, they just don't have any options left. Other then letting the free market take over.
(History has proven it never works, Think Japan = Lost Decade.
2008 Financial Crisis = Never fixed anything, just made the currency debt situation worse and kicked the can down the road 12 years.)
To break MMT down quickly and a hell of a lot less complicated.
Central Banks and Governments are of the belief they can print as much currency as they like with no consequence.
Central Banks have 2 main tools, Interest rates lowering and Printing Money.
They are out of Interest rates. 0.25 percent (or negative) in most countries.
Currency printing is the only tool they have left.
Currency printing is just kicking the can down the road until something fails. Japan has done this for 30 years. With no growth. See Japan's 3rd lost decade.
The end game is either a life of deflation, no growth. Or Massive Inflation and Currency printing. Effectively making currency worth nothing. (See Zimbabwe, See Venezuela)
My belief is...
This is a last grasp at saving a system which is at the end of its cycle.
If a Central Bank can print all the money it wants to prop up what they feel suits them best. They are essentially saying today's currency has no real value. Other then the value you give it.
(This has always been the case of every monetary asset)
We may be in lock-down for a very long time.. why?
Because once all the currency that has been printed and enters the market (spending), the risk of Hyperinflation and the destruction from all this money printing will be the end of the system.
The problem is, without us all spending money... the lack of velocity of money will destroy the system as well.... eventually. I do not believe Central Banks can keep printing to keep the currency alive until people lose faith in its ability to have value.
After all this system is backed by Confidence. Nothing more, Nothing less.
What this world needs is a new system, much like the free market we used to have. People and companies had to earn there profits. Not just ask for a hand out.
Would there be less growth and instant gratification? YES.
People, Governments, Central Banks and Companies need to realize that down markets happen for a reason, its the cause of inefficiency in themselves and the system or in the companies. You need to make a mistake to learn the lesson. Not paper over it and bail out people for their mistakes.
What's the way out?
It's people's mentality which have to change, we are all in this life to succeed together.
Not against each other. Greed is not the answer, overall prosperity is.
A return to sound money like gold or silver potentially, or even a system that is not controlled by any head figures could work - See Block-chain.
Sadly, I cant see this happening any time soon. All I see right now is mass poverty and a growing wealth gap which will carry on until the masses decide they have had enough.
All the best.