Former Fed Employee Admits QE for Wall Street (bankrupt, capitalism, 2013)
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First paragraph of the article: "I can only say: I'm sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed's first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time."
Not like this is surprising and a lot of people already knew this. So let's review some facts.
The federal reserve's balance sheet has expanded to 4 trillion, the federal government's national debt is over 17 trillion, and there are estimates at 100 trillion (or more) in unfunded liabilities. This is not too shocking as dozens of other countries are having something similar happen.
We have large cities going bankrupt like Stockton and Detroit with others on the horizon. Corporations are all dodging taxes to offshore accounts and then repatriating them so they're paying a 5% tax rate instead of 35% (and in many cases 0%). All big corporations are doing this like Bank of America, Google, Exxon Mobil, General Electric, Ford, and hundreds of others.
The jobs market is horrid with the majority of jobs added in 2013 being part-time. The labor force is the same as it was in 1978 with 90 million more people. 50% of Americans now rely on government assistance in some form.
Any predictions how much longer until the next phase of a financial collapse is? It's clear politics is not working nor is it going to work. When the average senator or representative is a millionaire they're obviously not representing the average American. Who wants to bet Janet Yellen increases QE, even though we have people admitting that it's not doing anything but pumping up the stock market? At what point is it clear to everyone the Titanic is sinking, when the government can no longer afford to aid 50% of families?
The Fed is the main reason this nation has failed. All it has done is inflate with a few pauses for insiders to buy assets with cheap money. The only way to fix the economy is to eliminate central banks and fractional reserve lending. Trouble is, the financial parasites will create some other scheme.
The Fed is the main reason this nation has failed.
I think it is one of the reasons this nation has failed. Historically every other superpower has also failed, usually around the time everyone realizes they are in fact bankrupt. I believe lobbying, corporate greed, Keynesian economics, politics being a facade, the military-industrial complex, capitalism, the absence of free markets, misallocation of practically everything, etc. are also to blame.
It has been a fine reinforcement of the myth that inflation is bad for the middle class. Lets make a fundamental analysis:
There are two cup cakes and two dollars. Fred has one dollar, and Ed has one dollar. Each can buy a cup cake.
Say I print a dollar and give it to Fred who buys both. Is that not good for Fred and bad for Ed?
Say I print a dollar and give it to Ed. Say he buys both. Isn't inflation good for Ed and bad for Fred?
Seems to me inflating the money supply has no bias with the exception of who has access to the new money.
Nice scheme. Not inflating dollars causes hoarding and deflation making real debts rise in value, meaning creditors win( see them buy up cheap housing). And when the money supply does expand, its only through bank credit for assets, meaning it inflates through them.
With deficit hawks in Washington, that leaves North Korea as the only source of new credit out side the Wall Street which only creates money by good squatting on da guberment, legislatively created assets.
The Fed is the main reason this nation has failed. All it has done is inflate with a few pauses for insiders to buy assets with cheap money. The only way to fix the economy is to eliminate central banks and fractional reserve lending. Trouble is, the financial parasites will create some other scheme.
That is not all it does. When someone buys up these assets and loads them with debt, it makes it more expensive for labor a capital to put into production. That may be useful in the sense that who ever does use it must do so efficiently, but where does this surplus go? Problem is over speculating in this regard can also cause it to go completely out of use entirely like a dining room reserved for VIPs while the children play in the closet. And when it does goes into production efficiently, who benefits? The very same function of efficient use can be applied by da guberment real estate taxes, using that revenue to end all taxes on labor and capital. But instead the movement is for property tax relief ...There is relief alright, with bankster, ejaculatory bliss with his prostitute of the day in the Hamptons instead of public services and a tax free industry.
I think it is one of the reasons this nation has failed. Historically every other superpower has also failed, usually around the time everyone realizes they are in fact bankrupt. I believe lobbying, corporate greed, Keynesian economics, politics being a facade, the military-industrial complex, capitalism, the absence of free markets, misallocation of practically everything, etc. are also to blame.
What's been Keynesian about it?
The runny nose of da guberment prescriptive Keynsianitius looks like this:
The runny nose of da guberment prescriptive Keynsianitius looks like this:
Show me the symptoms ....
From Wikipedia:
Keynesian economists often argue that private sector decisions sometimes lead to inefficient macroeconomic outcomes which require active policy responses by the public sector, in particular, monetary policy actions by the central bank and fiscal policy actions by the government, in order to stabilize output over the business cycle.[2] Keynesian economics advocates a mixed economy – predominantly private sector, but with a role for government intervention during recessions.
We are in a recession/depression. The federal reserve and government have been nonstop intervening in the economy for 5+ years now. It's Keynesian economic school of thought. They're not fixing anything, they're making it worse.
Keynesian economists often argue that private sector decisions sometimes lead to inefficient macroeconomic outcomes which require active policy responses by the public sector, in particular, monetary policy actions by the central bank and fiscal policy actions by the government, in order to stabilize output over the business cycle.[2] Keynesian economics advocates a mixed economy – predominantly private sector, but with a role for government intervention during recessions.
We are in a recession/depression. The federal reserve and government have been nonstop intervening in the economy for 5+ years now. It's Keynesian economic school of thought. They're not fixing anything, they're making it worse.
Oh Wikipedia...my mistake , I was foolish enough to read Keynes myself.
If we were taking the daily Keynesian horse pill, then we would have 3% unemployment because the theory specifically intents to "consume the surplus" rather than let it rot and to employ labor rather than let is sit idle.
In other words it calls for direct employment to build tangible infrastructure.
It is a curious thing, worthy of mention, that the popular mind seems only to be aware of this ultimate perplexity where public investment is concerned, as in the case of road-building and house-building and the like. It is commonly urged as an objection to schemes for raising employment by investment under the auspices of public authority that it is laying up trouble for the future. “What will you do,” it is asked, “when you have built all the houses and roads and town halls and electric grids and water supplies and so forth which the stationary population of the future can be expected to require?” But it is not so easily understood that the same difficulty applies to private investment and to industrial expansion; particularly to the latter, since it is much easier to see an early satiation of the demand for new factories and plant which absorb individually but little money, than of the demand for dwelling-houses.
The obstacle to a clear understanding is, in these examples, much the same as in many academic discussions of capital, namely, an inadequate appreciation of the fact that capital is not a self-subsistent entity existing apart from consumption. On the contrary, every weakening in the propensity to consume regarded as a permanent habit must weaken the demand for capital as well as the demand for consumption.
JMK
See anything there about sending out the checks and bailing out Vikram? There is no welfare, bank bailouts, social spending in "Keynsian economics." and that is besides the descriptive and prescriptive elements which can be fallaciously manipulated. Reagan was actually one of the biggest Keynesian presidents we had but he hid it under a facade of cold war necessity. A cold war is very Keynesian which is the mistake people make with WWII because a hot war isn't.
Yes it falls under an interventionist public sector but not all Asians are Chinese. Where is the low unemployment? Where are the "white elephants"? I haven't seen it since the 70s where it was indeed quite feckless since oil is not merely a product of human labor.
Any predictions how much longer until the next phase of a financial collapse is?
People have been making predictions about the end of the world for centuries. Shysters like Andrew Galambos (one of the earliest modern nuts from the 1960's), The Economic Collapse Blog and Stansbury Research have made money of fearful people with their daily predictions of doom and gloom. We are still here.
Quite frankly continuous fear of the world is about to collapse is not a sign of how the world is having problems, it's an expression of fear and helplessness of the person making the claims. There's decades of evidence of people making claims and predictions the world is about to go to hell due to every reason under the sun. When those claims fail the people making the claims just push the predictions farther into the future with new "evidence."
Things are not perfect, and there are problems, but it's special pleading to make assumptions of the conclusion just because things are not great. You can easily say that bad things are happening therefore:
* Jesus is about to come and start the end of the world (a number of millenist have been making that prediction with the same evidence)
* The Illuminati/lizard people/bilderburg group is about to take over and put people into FEMA camps (David Icke and Alex Jones have been making this prediction for decades)
* That this strife means a giant planet is about to hit the Earth (Nancy Leder's predictions)
Every prediction is mutually exclusive, and every daily/weekly/monthly prediction has turned out to be dead wrong over the course of decades. Each group just takes different evidence after their failure and makes the same claim. It has nothing to do with the conlusion coming from the evidence, but with people who are fundamentally unhappy and projecting it on the world.
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