Psst,
remember this story? The one where a panicked Ben Bernanke and his
cronies at the Federal Reserve -- seeing more devastation in the jobs
and housing markets -- say they will continue to disguise the failure of
Obama-Reid-Pelosi-Dodd-Frank socialism by flooding Wall Street with
even more dollars?
Well that's not exactly verbatim, but lost in the news shuffle of embassies being attacked while Marines are un-armed -- and Mitt's video of truth about 47% -- was Bernanke's latest announcement of quantitative easing by the Fed (QE 3). This was followed a couple days later by Japan's central bank announcing their QE 8. Yes, eight. And while this was blown off the front page by other events, QE 3 might have a greater impact on the 2012 election and us in the long run than the embassy issues. I mention Japan since they are now 20 years into a stagnant economy, and easing has failed every time.
Yet as a prisoner of the typical liberal academic misapprehension of cause and effect, Bernanke is hoping that homes, capital equipment, and employees now considered unnecessary will somehow gain value if there are simply more dollars chasing them. All the textbooks say this must occur. You can state this with a straight face in Aspen, and no one will snigger.
Reality is very different, however. Frankly, those dollars are not going to chase homes, equipment, and employees. Thus, easy sleazy monetary policy will not suddenly make the homes, equipment and employees worth more -- but it will make those dollars worth less.
As in worthless.
Well that's not exactly verbatim, but lost in the news shuffle of embassies being attacked while Marines are un-armed -- and Mitt's video of truth about 47% -- was Bernanke's latest announcement of quantitative easing by the Fed (QE 3). This was followed a couple days later by Japan's central bank announcing their QE 8. Yes, eight. And while this was blown off the front page by other events, QE 3 might have a greater impact on the 2012 election and us in the long run than the embassy issues. I mention Japan since they are now 20 years into a stagnant economy, and easing has failed every time.
Yet as a prisoner of the typical liberal academic misapprehension of cause and effect, Bernanke is hoping that homes, capital equipment, and employees now considered unnecessary will somehow gain value if there are simply more dollars chasing them. All the textbooks say this must occur. You can state this with a straight face in Aspen, and no one will snigger.
Reality is very different, however. Frankly, those dollars are not going to chase homes, equipment, and employees. Thus, easy sleazy monetary policy will not suddenly make the homes, equipment and employees worth more -- but it will make those dollars worth less.
As in worthless.
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