Money Printing Madness
Long-term pain assured.
by Stephen Lendman
According to an ancient proverb, "Those whom the gods wish to destroy they first make mad." Perhaps it had central bankers in mind.
In fall 2007, economic crisis conditions erupted. Counterproductive policies followed. Resolution is nowhere in sight. Responsible measures weren't adopted. Everything done so far failed.
Money printing madness substituted for stimulative growth policies. Since early September, coordinated central bank intervention repeated what hasn't before worked.
For most people, conditions are much worse now than earlier. Troubled European economies are cratering. Force-fed austerity crippled them. Stronger economies are faltering. Unemployment and poverty are increasing. So is public anger.
According to Fed chairman Bernanke, monetary policy is "no panacea." It hasn't slowed his money printing madness. Gloom, Boom & Doom's Marc Faber expects Fed policy to "destroy the world." It just takes time.
He worried for good reason. "The fallacy of monetary policy in the US is to believe this money will go to the man on the street," he said. It hasn't so far and "won't."
"It goes to the Mayfair economy of the well-to-do people and boosts asset prices of Warhols."
"It is difficult to tell what will happen. I happen to believe that eventually we will have a systemic crisis and everything will collapse."
"But the question is really between here and then. Will everything collapse with Dow Jones 20,000 or 50,000 or 10 million? Mr. Bernanke is a money printer and, believe me, if Mr. Romney wins the election, the next Fed chairman will also be a money printer."
"And so it will go on. The Europeans will print money. The Chinese will print money. Everybody will print money and the purchasing power of paper money will go down."
"I think there is a huge misconception and fallacy that money printing can actually improve the rate of employment because the money flows down into the system."
"It goes first into the banking system and into financial institutions, into the pockets of well-to-do people. If you drop money into my pockets".at the same time (of wrongheaded) government involvement," economic development is stifled.
"I don't want to build a new business. But what I may do is look around the world (for) distressed assets. So I will go and buy existing assets, takeovers. But takeovers don't add to employment. They destroy employment."