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The Fed Engaging In Quantitative Easing Until Unemployment Falls Is Like a Medieval Doctor Bleeding a Patient with Leeches ...
The Federal Reserve announced that it will keep on engaging in quantitative easing in the amount of $85 billion dollars per month (or more) until unemployment improves.
That is like a medieval doctor bleeding a patient with leeches until his iron deficiency goes away.
Ken Griffin - head of Citadel Capital - noted this week:
As we've all learned over the years, if you reduce the cost of capital you increase your use of fixed assets and you take out jobs. Corporate America, seeing an ever increasing cost for its employee base and extraordinarily low interest rates, is taking every step it can possibly take to reduce employment, to build factories abroad and domestically to substitute technology and automated processes for people.
By way of background, Dallas Federal Reserve Bank president Richard Fisher said in 2011:
I firmly believe that the Federal Reserve has already pressed the limits of monetary policy. So-called QE2, to my way of thinking, was of doubtful efficacy, which is why I did not support it to begin with. But even if you believe the costs of QE2 were worth its purported benefits, you would be hard pressed to now say that still more liquidity, or more fuel, is called for given the more than $1.5 trillion in excess bank reserves and the substantial liquid holdings above the normal working capital needs of corporate businesses.
Similarly, former Secretary of Labor Robert Reich pointed out in 2010:
Cheaper money won’t work. Individuals aren’t borrowing because they’re still under a huge debt load. And as their homes drop in value and their jobs and wages continue to disappear, they’re not in a position to borrow. Small businesses aren’t borrowing because they have no reason to expand. Retail business is down, construction is down, even manufacturing suppliers are losing ground.
That leaves large corporations. They’ll be happy to borrow more at even lower rates than now — even though they’re already sitting on mountains of money.
But this big-business borrowing won’t create new jobs. To the contrary, large corporations have been investing their cash to pare back their payrolls. They’ve been buying new factories and facilities abroad (China, Brazil, India), and new labor-replacing software at home.
If Bernanke and company make it even cheaper to borrow, they’ll be unleashing a third corporate strategy for creating more profits but fewer jobs — mergers and acquisitions.
William F. Ford – former president of the Federal Reserve Bank of Atlanta – wrote in 2011:
Table 2 below shows our estimates of the possible losses in spending power, output, and employment generated by the Fed’s artificially low interest rates. Even by our most conservative estimate, which only looks at the $9.9 trillion in assets most directly affected by depressed yields on Treasurys, the losses are impressive. The average yield on Treasurys in June 2010 was 2.14 percent compared to an average of 7.07 percent in the previous nine recoveries, a difference of 4.93 percentage points. The projected annual impact of this loss of interest income on just $9.9 trillion of rate-sensitive assets translates into $256 billion of lost consumption, a 1.75 percent loss of GDP, and about 2.4 million fewer jobs.(Our calculations assume that the recipients of interest income face a 25 percent average income tax rate and consume 70 percent of their after-tax income.)
Had these jobs not been lost, the unemployment rate would be 7.5 percent, instead of the current 9.1 percent, and this is the minimal effect we estimate.
***
As the estimate of the total of affected interest-sensitive assets gets bigger, the negative effects of depressed yields becomes even more striking. Using our mid-point estimate of $14.35 trillion of interest-sensitive assets, a 4.93 percentage point reduction in interest rates annually cost the economy $371 billion in spending, 3.5 million jobs, and 2.53 percent of GDP. This is a sizable effect, given that during this time GDP grew by only 2.33 percent and the economy added only 870,000 jobs.
With the additional jobs that might have been created by higher interest income levels, the unemployment rate could fall to 6.8 percent. And output could grow more than twice as fast as it has. The resulting GDP growth rate of 4.86 percent would then be closer to the average second-year growth rate of the past nine recoveries, and the U.S. economy would be well on its way to a vigorous recovery, rather than struggling as it is now.
This midpoint appraisal is our best estimate of the likely effect of the Fed’s policy. It may still be on the low side.
The numbers do not account for any so-called multiplier effects. Additional spending by recipients of interest income creates revenues for businesses, which in turn increases the income of their owners and employees, who themselves spend more. This, in turn, could boost overall spending and employment by more than the gain in interest income alone would suggest.
***
The housing market has not even begun to recover since the QE initiatives were created. U.S. auto sales and the stock market also remain well below pre-recession levels. And the sharp decline of the U.S. dollar has not created an export boom. But it has put upward pressure on the cost of our food and energy imports.
And tens of millions of U.S. savers, largely the elderly, still are facing strained circumstances created by Fed-driven abnormally low interest rates across the entire Treasury yield curve.
The negative impacts on output and employment caused by quantitative easing through the interest income effects shown here are large. In fact, they may outweigh the expected, but hard-to-document, positive effects of the QE program.
John Doukas - founding and managing editor of European Financial Management, a leading journal in European finance, and Chair in Finance and Eminent Scholar at Old Dominion University, Virginia - wrote this April:
The repeated Quantitative Easing (QE) policies of the US Federal Reserve in the aftermath of the global financial crisis, with similar actions by the Bank of England and the European Central Bank (ECB), have failed miserably to restore growth and reduce unemployment.
***
The practice of expansionary monetary policy leads to capital misallocation as it favours short-term spending at the expense of long-term spending (investing less in long-term projects). That is, it creates a savings-investment gap that reduces the capital formation required for the economy to grow, which renders a high fraction of its existing capital stock obsolete. This, low interest rate policy, an outcome of quantitative easing, in turn, has an adverse effect on productivity forcing capital to migrate in foreign/emerging markets in order to realise higher returns. In other words, excessive money supply fails to increase real economic activity because it raises the labour cost while it lowers the cost of capital. Depressing yields at home, as a result of quantitative easing, in an open economy setting, leads yield-seeking investors into higher-risk investments such as emerging markets.
***
While quantitative easing, like expansionary fiscal policy, may increase aggregate spending, this does not trickle down to the real economy because relative prices (labour vs. capital) work against it. This results in higher rates of unemployment with capital flying to foreign markets. A related effect is that foreign economies, especially those with lower labour costs than western economies, become more attractive places to invest because of these lower costs and promising higher returns to capital. That is, quantitative easing encourages outsourcing, as capital is excessively substituted for overseas labour causing jobs and product innovation to move offshore. Imported goods and services from these countries, then, become more attractive to western consumers because they are cheaper in comparison to the ones locally produced resulting in great outflow of capital, outsourcing and unemployment. This vicious circle exacerbates the disadvantaged position of western economies as they are forced to continue relying on overseas lenders to meet their spending needs, leading to mounting budget deficits and external debt.
Moreover, it is well-documented that quantitative easing increases inequality. Quantitative easing doesn’t help Main Street or the average American. It only helps big banks, giant corporations, and big investors. Too much inequality causes economic downturns and decreases aggregate consumer demand ... and companies fire workers when demand decreases. So quantitative easing also indirectly - but in a very real fashion - destroys jobs by destroying consumer demand.
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So wait, is Paul Krugman wrong and everyone else right? And he still gets a platform? A voice to spout his dribble?
QE is to repair big banks' balance sheets and to destroy .gov's balance sheet, what more need to say?
Who could possibly believe that a bank cartel would pull a nasty trick like that?
0x0=0
WOW!
Where is John Galt?
Atlas Shrugged
Your liberal bias does not allow you to place the blame where the blame belongs.......it's NOT the FED,
IT'S THE OBOWEL MOVEMENT!
Your strict adherence to political tribal bullshit makes you part of the problem.
You're using a microscope. You need binoculars.
Thanks for the down arrow, coward!
You are just too big of a pussy to point out where I am wrong.
Go fuck yourself
The first reply told you but you're just too fucking stupid to see it. There is NO DIFFERENCE between left and right, only distraction aimed at polarizing one against another while your LIBERTY is quietly removed via the back door
You are wrong because the POTUS, along with CONgress are paid whores for the pimps behind the scenes that are butt-fucking you and the rest of us. If you have a thing for getting butt-raped by a red flag-waiving prostitute instead of a blue flag-waiving prostitute, all you're saying is that you like getting butt-raped, as long as it's by someone who pretends to be "your type."
Bill got a new rifle and decided to go bear hunting. He went to Alaska, spotted a small brown bear and shot it. Soon there was a tap on his shoulder. He turned around to see a big black bear.
The black bear said: “That was a very bad mistake. That was my cousin. I'm going to give you two choices. Either I maul you to death or I fuck you up the ass.”
After a moment's thought, Bill decided to accept the latter alternative. So the black bear had his way with Bill. Even though he felt sore for two weeks, Bill soon recovered and vowed revenge.
He went on another trip to Alaska where he found the black bear and shot it dead. Right then, there was another tap on his shoulder. This time a huge grizzly bear was standing there.
The grizzly said: “That was a big mistake, Bill. That was my cousin and you've got two choices, either I maul you to death or we have 'rough sex’.”
Again, Bill thought it better to go along with the grizzly bear than be mauled to death. So the grizzly had his way with Bill. Although he survived, it took several months before Bill fully recovered.
Now Bill was out of his mind with rage, so he headed back to Alaska and managed to track down the grizzly bear and shot it. He felt sweet revenge, but only moments later, there was a tap on is his shoulder. He turned around to find a giant polar bear standing there.
The polar bear looked at him and said: "Admit it Bill, you don't come here for the hunting, do you?"
When you see somebody doing something that clearly isn't getting the supposedly hoped-for result, and they keep doing it over and over and it keeps not getting the purportedly hoped-for result, you have to stop and think. You have to wonder, "Are they really hoping for the result they say they are? Is there maybe another purpose altogether they're working toward, which they are getting?"
I know a couple who should have divorced a decade ago. Individually, two really great people. But maybe the worst couple ever. So why do they stay together? All they ever talk about is how much they hate each other. Somehow, in some way, needs are being met. They'll stay together until death do they part. My wife and I are great pals, but we'll split up before these two.
I work for a number of coporations, as an independent. They're always going on about how they need to save money. But then when the CEO wants to charter a helicopter to avoid a limo ride, all of a sudden money is no object. Whose needs are being met?
Where I'm going with this is, QE has nothing to do with Unemployment; that's obvious. It also has nothing to do with Stimulus. It isn't Stimulus. So there's another purpose. When somebody dies in a car crash and their brain is smashed, if they've ticked the organ donor box the hospital will keep running IV fluids through them until they can make the arrangements, line up the recipients, and harvest the organs. The US is a mind-bogglingly wealthy country and vast, so the timeliine is longer. But that's all QE is. It's the IV fluids and the ventilator, keeping the corpse warm until everything can be extracted.
If the purpose really were Stimulus, we should have given every man, woman and child $100,000 freshly-printed Bernanke-Bucks in 2009. That would have ended the Housing Finance Crisis, would have wiped out all but the most intractable credit card debt, fixed the Student Loan Bubble, fixed the savings rate, and straightened out the banks' balance sheets in a flash. The Dep-Recession would have been stopped cold. Conusumer spending would have resumed, which would have slashed Unemployment, which would have dramatically raised tax revenue, which would have fixed the public debt situation. Why didn't we do it? Because that wasn't the goal.
The goal was to keep all the private debt in place. Private debt is at least 5x more than public debt. All the smoke and noise about government debt is bullshit, because the Fed, as we are seeing, can just create money, buy Treasuries, exchange them with the banks for worthless debt, and create a closed loop that looks like economic activity but isn't.
QE is working brilliantly. They're coming for your liver and corneas soon enough.
“If the purpose really were Stimulus, we should have given every man, woman and child $100,000 freshly-printed Bernanke-Bucks in 2009.”
Yes, that would be the public’s bonus as its share in contributing to the productivity of the Great American Dream economy: the benefits of this American system should be open to all American citizens, not the sole property of the corporations for their sole profits.
We are being robbed.
Says Richard Benson of Specialty Finance Group: “Man is such a lucky creature because machines do all of our work. Our economy and prosperity stand on the shoulders of the geniuses who invented the wheel, lever and plow, and the creative thinkers who dreamed up mathematics, the internal combustion engine, silicone chip and the internet. These innovations have led to wondrous and unforeseen leaps forward for mankind. Human ingenuity, mixed with a desire to do better and produce more with less, has relentlessly driven productivity forward…”
Therefore, asks Benson, "If mankind's machines produce more with less labor each year, why shouldn't the dollar I make this year buy more next year? Shouldn't this increase in productivity flow through to the wage earner and saver?”
Yes, it should. If a free enterprise culture produces innovation, then that culture should be a part of the resulting prosperity.
Brilliant essay, swmnguy.
... after discarding the useless testicles.
The saltpetre in the Cheeto Cheez Dust makes that step a matter of preference.
In science, no one argues with gravity, or F=Ma.
In economics, no one agrees on anything. The proposals for "laws" are 180 degrees apart. It is like throwing ckicken bones on a table and reading their meaning.
Indeed, RaceToTheBottom, there are good reasons why nobody agrees about economics! The oldest and best developed social science was warfare, whose success was based on deceits. In order to have a good political science, one has to begin with the concepts of SUBTRACTION and ROBBERY, whereby one perceives that "economics" is always necessarily organized systems of lies, operating organized systems of robbery. There is no way to have a better political science which does not make the problem of deceits backed by destruction become its central feature.
Actual history has developed War Kings, which made sovereign states, whose powers were taken over by the Fraud Kings, the private banks. All of economics is based on the power to rob, backed by the power to kill. However, being the best at doing that depended on being the best at lying about what one was doing. Thus, the "science" of economics is an aspect of militarism, wherein the most successful economists are the best professional liars, and immaculate hypocrites.
Therefore, of course, the proposals for "laws" manifest 180 degrees apart!
Everything we are doing operates through Bizarro Mirror Worlds! To fully understand that, one has to understand how profoundly backwards are the ways that we think about everything. The deepest of those that I am aware of is that our concept of entropy is backwards. Since all of our thermodynamics and information theory is BACKWARDS, in the basic ways that it understands itself, of course, all of our theories of economics are BACKWARDS!
It is theoretically possible to have a better science of economics, but not unless that is understood within the context of militarism, which is the supreme ideology, and the most problematic of human sciences, since its success was based on being the best at deceits about itself! In all human sciences, there are tremendous benefits to be gained from being dishonest, and being able to back up that dishonesty with violence. The cannot be any genuine progress in human sciences unless we were to collectively become more able to understand and agree upon that. However, our current society is already almost totally dominated by the people who were the best at tricking other people in the past. Furthermore, those biggest bullies have been able to operate for many generations, in order to brainwash the vast majority of people to agree with their bullshit.
Again and again, profound paradigm shifts in sciences such as physics and biology have already happened, and thereby enabled technologies which are trillions of times more powerful than ever before in human history. Thus, the philosophy of science is the most important thing for a society based on advancing technologies. However, that philosophy of science must also go through its own profound paradigm shifting, and that greatest need for that is in the area of political science. That conclusion then loops back to all of the points which I just made above ... We need to understand ourselves better as energy systems, BUT, that requires a profound paradigm shift in the way that we understand the concept of entropy, because the biggest bullies' bullshit has deliberately inverted the meaning of that, by inserting an arbitrary minus sign in the entropy equations.
The basic mathematics itself reveals that all power and information are NEGATIVE values, not positive values. That is the deepest way that I am aware of regarding how we think about everything BACKWARDS. From that root mistake about how we understand all energy systems spreads out mistake after mistake, throughout every other understanding of every other energy system! That loop closes back on itself through the ouroboros of incorporated robberies, where the science of economics manifests in a Bizarro Mirror World, where pretty well everything that the so-called science of economics says is deliberately backwards, since its success as a monetary system was achieved inside the context of the success of a murder system, through the ways that militarism evolved and operated ...
As we continue that kind of RaceToTheBottom, what I recommend is that we have to go through the looking glass, of our Bizarro Mirror World. We should RaceToTheBottom in a way that results in us bouncing back up off of the divine ground, because that is the way to go through the looking glass, which is our current Bizarro Mirror World, where everything is being understood BACKWARDS, because we do not understand that we are looking into a mirror, and therefore, are not understanding that all our perceptions are backwards. At present, we are in a RaceToTheBottom, because we are steering while looking in the rear view mirror, while not understanding that everything we see in that mirror is backwards. Therefore, we are in a powerful dive down and down ... but the only genuine solutions to that situation are to go through ...
I hear tea leaves work just as well and they don't leave a greasy residue.
Destroy interest income, divert remaining income to higher food & energy costs, make it more attractive to off-shore jobs, create expectations that your bubbles will end when you stop QE... Then sit back and wait for the economic recovery.... Sure...
The Fed's dual mandate is in itself an engineered racket historians will remember as the greatest fraud of all.
"In an effort to conserve, we're committed to keeping the lights on until they turn off."
The Federal Reserve = enabler of bullshit, fraud, and Fascism - all pervasive and systemic today.
Fascism. That's the only word you need to know.
good article, I am woundering now is that why they made the FED a private corporation. They take all the bad debt then declare bankrupty always taking the hit for the goverment. Great theory, lets see them try to pull it off.
Like your 'Harvey,' dude. I belive the Bernank sleeps with one every night.
Yeah, I've never quite understood why the gov't doesn't make this process so much more difficult/painful with a (punitive) tax levy or being forced to sacrifice certain tech to the Public Domain in exchange for the opportunity to grow this way (unless the company is in bankruptcy). It does nothing to benefit society but instead reduces competition, creates higher prices, causes a loss of jobs and creates monopolies that consolidate patents which kill innovation since they can charge greater license fees due to their financial and influential leverage or simply prevent competitive innovation by sitting on "dependency" patents without using nor (fairly) licensing them. I suppose this is mostly due to the lobbying influence.
From this wonderful [sarc] "growth" process, we now have a country full of conglomerates that are all TBTF, have too little competition and too much influence which has only really served to benefit the bankers and the elite class.
A pearl of great wisdom, Reci; a pearl
“If America is to survive economically and politically, we must break up the modern day monopolists and return opportunity and wealth to local communities and small businesses.”—Thom Hartmann in a review of Cornered: The New Monopoly Capitalism and the Economics of Destruction" by Barry C. Lynn.
Writes Hartmann in the review: “This book is about power.
…“Monopolies are not free enterprise; they’re not even good capitalism.
“When one particular set of cells in a body rise up and decide to take to themselves all the nutrients in the body, growing without limit while robbing every other organ and cell of its necessary nutrients, we call that cancer. When it happens in a political and economic system, it’s called monopoly.
“This is only the second time in American history when we’ve faced such a concentration of wealth and power, of business and money, and of the political control that flows from it. The previous time was in the late 1800s, when J.P. Morgan came to dominate most of the American business landscape (Lynn notes that it was called ‘Morganizing’ back then, instead of ‘private equity companies’ or ‘M&A artists’), competing with a small handful of oligarchs like J.D. Rockefeller and Andrew Carnegie. When Theodore Roosevelt became president in 1901, he set out to break up these cartels, earning himself the moniker of ‘Teddy the Trustbuster.’ But his efforts were flawed (he believed in a top-down strategy, as did FDR), and the result is that today’s monopolies are even more toxic than the ones of his day because these new ones are worldwide in their influence, and have largely captured our political processes.”
http://www.thomhartmann.com/review-cornered
If Obama were not a captive of Wall Street – as all recent banker-controlled presidents - he would enforce the Sherman Anti-Trust Act. And, of course, to give credit where credit is due, J. Pierpont Morgan was an agent of the Rothschilds. When Sr. died in 1913, people were shocked to learn that his estate was valued at only $68 million ($1.3 billion in today's dollars), a paltry sum compared to his "employers." As G. Edward Griffin states, "the Morgan firm was, and always had been, merely the wealth and power of the Rothschilds who had raised it up in the beginning and who sustained it through its entire existence."
Yes. And then there is the ugly corporate work place with it's creepy hr machinations and chains of ass kissing leading towards the top. To thrive in that environment you have to be pyscho.......
Same as government, both being supported by artificially low (FED) interest rates. End the FED.
It is also like treating a dog that is being killed by a parasite by growing the parasite.
Yup: Why the Patient Is Not Getting Better: Government is Strengthening the Parasite and Poisoning the Real Economy
Hudson:
The Financial Parasites Have Killed the American Economy, and They Are
Sucking as Much Money Out as They Can Before Jumping Ship
Actually, this was all known in 1913 when the Ponzi scheme was first set up. A giant system of debt that can only survive if ever more debt is created is not sustainable. The greedy rats who set up this current system, in which the growth and progression of the economy is paramount, knew this and so did their critics.
Yes, rustymason, and the same methods of organized crime have become much more brazen than back before 1913.
The profoundly paradoxical problem is that apparently only a group which was better at backing up deceits with destruction could defeat those who are operating the established systems, due to them being the best at backing up their dishonesty with violence in the past. Almost everyone who proposes "monetary reform" refuses to face those facts. What will most probably happen is the continued runaway triumph of the fundamentally fraudulent accounting systems, directing our civilization to destroy itself.
Along that path, there are no actually possible, practical and realistic political alternatives, since there is never a point where a better organized system of crime can emerge, until after the established organized systems of crime cause their own collapse into chaos, due to too much success at being able to back up their huge lies with lots of violence.
Theoretically, the only "better" things which could resolve the chronic political problems would have to be better systems of organized lies, operating organized robberies. That would become "monetary revolution," which would only become possible after the established systems have already gone so mad, that they are going through psychotic breakdowns, which may open up new opportunities for new systems to emerge.
You are obviously right, rustymason, that from the moment the national system was created, where there was "money" being made out of nothing, as debts, then the only way that that system can continue is to constantly create more of the "money" out of nothing, so that there always must be more debts.
Within that system, if there is no more debt, then there is no more money. The basic structure of the system makes it impossible to fix its own problems. We DO have a global Ponzi scheme, social pyramid system, in which the American dollar was the central feature, and that was backed up by all aspects of the American military.
That got going through covert methods of organized crime, gradually becoming more and more successful, through bribery, intimidation, and assassinations, etc. ... The PROBLEM is that there is nothing other than death controls which can deal with death controls. Money was always backed by murder. All the various superficial notions regarding "monetary reform" that I have ever seen are nice THEORETICAL possibilities. (E.g., I like the Bill Still or Ellen Brown kinds of varieties of those.) HOWEVER, in the real world nothing less than "monetary revolution" is politically possible, and that can not actually happen until the established systems have already practically destroyed themselves, and therefore, are collapsing into chaos due to the paradox of final failure from too much successful frauds, causing the whole society to become too psychotic, in the ways that it makes every possible economic decision, since every decision is being made with monetary measurements that are done with a melting, bent, rubber ruler.
As you stated, rustymason, a small group of intellectuals were always aware of the problems with the basic Ponzi scheme created through the Federal Reserve Board, and, of course, those driving that social pyramid scheme to become reality were very well aware of exactly what they were doing.
These days, as the consequences of exponential growth of debts is becoming manifested, as it saturates itself to the point where its numbers are obviously NUTS, a slightly larger group of the public is becoming aware of this situation, which was always built into the original structure, in a deliberate way, by those who designed it.
However, the vast majority of people are still too clueless to even have a clue how clueless they are. Furthermore, almost all of the leaders of "monetary reforms" are various kinds of reactionary revolutionaries, whose ideas for solutions are to go backwards, to impossible ideals, which have already failed to work ...
The only genuine solutions have to face the fundamental facts that money is backed by murder, and that the established systems are the result of the application of the methods of organized crime. The only possibly real solutions are better organized crime, in order to sustain a monetary revolution.
What is needed, theoretically speaking, is a monetary system which will enable better human ecology, industrial ecology, within natural ecology. The main obstacle to that, at present, is that our actual ecologies were due to the selection pressures of who was the best at backing up deceits with destruction.
The only theoretical solutions to the debt control problems are better death controls. Of course, that is why it is practically impossible to actually do that, and why we will mostly just have to watch and wait as the established systems destroy themselves, before any opportunities for revolution might open up.
All of the various monetary reform ideals are really non-starters. Only monetary system revolution, based on the methods of organized crime, and its associated murder systems, are possibly operational in the real world. However, those are faced with the deepening dilemmas of weapons of mass destruction, along with computer systems, that are both trillions of times more powerful and capable than at any time in the past, and constantly becoming even more so!!!
In THEORY, it is imperative that enough people understand weapons of mass destruction, enough to adapt to those being trillions of times more powerful. That would require profound paradigm shifts in militarism, which would then enable a radically different murder system, whose different systematic death controls could enable different debt controls, through monetary revolutions, which were an aspect of a series of paradigm changes throughout every aspect of political science.
However, obviously, that would require a series of political miracles, while the ACTUAL events are going to continue to be the runaway triumph of financial frauds, whose long-term consequences are that the whole civilization becomes crazier and crazier, until it goes through a series of psychotic breakdowns, as its established systems collapse into chaos ...
Therefore, the foreseeable future will be a hyper-complicated political juggling act, where the current juggling of more and more balls finally become impossible, because those numbers have become too NUTS, ... while, within that psychotic situation, some new juggling system might be able to emerge?
Anyway, rustymason, I certainly agree that those who set up the Federal Reserve system knew what they were designing at that time, and that a small group of intellectuals were also aware of what was happening, at that time ... HOWEVER, as far as I can tell, there is practically zero public awareness of what a more "sustainable system" would entail, since its foundation must be some kind of sustainable murder system, which could still operate, even while there are weapons of mass destruction.
There is no doubt that there are plenty of creative alternatives, and theoretically possible death control systems, which could operate a more sustainable set of human, industrial and natural ecologies. However, ALL of those must have their death controls as central to actually be able to continue operating, and those death controls have to cope with the infinitely deep dilemmas of death controls actually being done through deceit, backed by destruction.
Again, it might be theoretically possible to make enough of a greater use of information, enabling a higher consciousness, in order to work through those problems and dilemmas, to some substantial and more sustainable degree. However, at present the established systems ARE built on those operating them being the best professional liars with respect to what they are really doing, which that requires that the vast majority of people continue to be tricked by those lies.
Within that context, I have never yet seen any significant public figure talk about the deeper dilemmas with respect to the real death control problems. Instead, at the present time, the parasites are killing their host, through the runaway triumph of those parasite's deceit driven death controls, since those parasites have been able to take almost complete control over the signals that the host is receiving about what is happening, so that the host does not understand what is happening, about why it is dying.
"Moreover, it is well-documented that quantitative easing increases inequality. Quantitative easing doesn’t help Main Street or the average American. It only helps big banks, giant corporations, and big investors." – GW
Lew Rockwell and Ron Paul are in agreement, GW.
Ron Paul on Bernanke's Criminal Gang
Posted by Lew Rockwell on May 1, 2013 01:21 PM
I am disappointed, but not surprised, that the Federal Reserve decided to hand the American people more of the same failed policies that caused and then perpetuated our current financial crisis. Chairman Bernanke may believe there is no inflation, but try telling that to seniors who are on a fixed income, students trying to save for college, and the millions of other Americans who are contending daily with rising prices.
If the problem was the Fed not printing enough, and Congress not spending enough, why have the trillions of dollars in monetary stimulus only benefited big banks and corporations? Why are Americans paying higher prices each week at the grocery store?
The truth is the Federal Reserve’s bond-buying program only benefits big bankers and politicians while hurting poor and middle class Americans. We can never hope to be a prosperous nation again until we realize the printing press is not the solution to our problems.
The American people deserve a full accounting of what the Federal Reserve has been doing to our economy and our money, which is why Campaign for Liberty will continue to lead the fight to Audit the Fed.
Oh, and End the Fed. (Thanks to Norm Singleton)
http://www.lewrockwell.com/blog/lewrw/archives/137017.html
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Yes. Wrong diagnosis, wrong treatment. Some help in wealth effect....but he is overdoing it at the expense of warping the bond markets too much...and spoiling the rest of do nothing Washington...who does not attack structural problems. Bernanke is too much of a wimp in talking to Congress...while being a maniacal macho guy with QE
Unlike WW2...QE and hi govt debt builds factories overseas, not in USA.
How long can we carry this increasing sack of debt? Everyone has a limit. I believe we passed ours about 8 trillion ago.
Long way to go. Look at Japan. We haven't even gotten to 50-year mortgages yet, much less 100 year mortgages. "The poor" can all afford to live as well or better than the working middle class. Lotta fat there, all over the place. The money-printers own just about everything -- the major banks, the MSM, the culture, and almost all politicians -- and have no serious opposition. This can go a very, very long time. Look what they can do to gold and silver with the push of a button. Who can resist the power of the beast?
Yeah, even the mainstream moron reporters on CBC are nodding in the direction that the "medicine" may be worse than the disease:
http://www.youtube.com/watch?v=7T_VxdLJdDU#!
The Monarchs of Money
... For another reactionary revolutionary alternative view of this:
http://www.ukcolumn.org/blogs/bradbury-e-book-now-available
http://www.ukcolumn.org/sites/default/files/Bankers Bradbury and the carnage on the Western Front! 30:11:12.pdf
C'mon George, the Bernank PhD is ridding the economy of billious humours by bleeding the taxpayers.
It is sure to improve unemployment, we simply haven't been bled enough, just ask Dr. Krugman.
its all for perception...the sheeple think he's making a difference...besides, how else are they gonna pay for the Obamaphones?
Wow, haven't seen that old chestnut for a while, its a reagonphone fuckwit, he introduced the program in the eighties.
Are you some kind of goldfish?
Either way, it's safe to say they haven't had to work since then!
Uncle Bens Directive of ' never give a sucker an even break ' has for all purposes proved most succesful in its implementation!
Are youz folks saying Ben B is not being totally upfront with his real motives regarding QE to Infinity? Blow Me it's a shocker! That crafty old bugger has stiched us up like a kipper, Again!
I like to spread my prejudice around. This quarter Q2 i refuse to share any contact with people whose surnames rhyme with 'ring'.
In india&china alone this will account for approx 180 million people.
Ok maybe i have finally cracked ( well who of sound mind wouldn't with all the shit to infinity going on all around us). Gonna throw of my clothes now and run through the high street slashing throats indiscriminately with a razor. Placates me until the next time.
QE4 has nothing to do with the unemployment rate. Thats bullshit for the minions. Its purpose is to buy the debt of the gov so they can continue to deficit spend. And since its leaves the debt on the fed balance, one day they will just say "poof", it does not exist. It will not matter since it was created with newly printed money and the interest it was earning was going from treasury to the fed then right back to treasury. The biggest circle jerk on the planet. That is the dirty little secret that allows Krugman to march around saying the amount of debt doesn't matter. Their strategy has to be to get every dollar of debt to the fed so they "poof' it all away. QE will last for a very long time, all the fabricated discussions are just noise to keep people distracted.
Everything but the last sentence.
QE doesn't matter until it does, until the dollar becomes irrelevant. Then "poof"....
We have doubled our debt what, six times in the last five decades. This circle jerk, by jerks, is not only destroying the american economy, it is purposefully exporting our inflation. Why would the world take that?
Gadafi didn't like it, so he switched, then quickly died. The Iranians don't like it, either. Now they're the 'big boogie man', since they're trading oil for gold and ships, w/o giving the thieving 'dollar bankers' their cut.
Because we have the biggest, baddest, military on the planet and we aren't afraid to use it.
If we invade Iran, it would require the Draft. It's a big country.
Excellent analogy
I've often said the Fed is like a parasite and we're its host
Time to expel them before they kill us
don't use a zapper, they need to die a slow death