Similarly whatever money is printed by the Fed will only drain off to foreign nations where businesses have been rapidly growing and represent good credit risks. After all, businesses in communist China have a good chance of selling their products back in Europe, America and emerging where there remains a market for extremely cheap goods.
So what could be done?
The foremost policy that must be implemented immediately is a total reversal of the Free Trade Agreements and Most Favored Nation status of China. Second, import tariffs for cheap goods made with slave labor should be put in place. Overall protectionist policies should be implemented without delay.
Third, if any money is to be printed and handed out, it should be diverted from war funding and handed out to the poor and unemployed middle class through social relief programs. Money received by the poor and unemployed will be immediately spent whereas money given to banks will only be socked away and will have no impact on the economy. The effect of poor and middle class spending will be to stimulate the economy like nothing we have seen to date. In conjunction with the other two policy reversals noted above, this would put our nation's economy back on the track to recovery
But can you imagine any of these policies ever being implemented in this right wing environment? Not in our lifetime. The propaganda against this type of economic policy has been so engrained in our New World market philosophy that the chances of uprooting it are zero to none. Even the left wing economists have bought into the Freidman's Folly view of world economics. It's quite all right to give trillions of dollars to bankers who have raped our nation, gambled away our future, and caused the economy to tank. But woe betide any economist who counsels giving money away to the poor. That would be giving money to "people who don't deserve it."
So we are still today, in 2011, three years into the worst economic disaster the US has ever faced, moving in the wrong direction, diametrically opposed to the direction we need to take. Worse, we are accelerating our own demise. The government has been given cover to further strangle our economy by eliminating social programs. After all it was all those minorities who could not afford their home loans that caused all this problem so they should pay, right?
Against this backdrop the rising din of wars in six nations threatens to drown out all else. Europe is being similarly sold down the river by the same banks and logic. Workers who have struggled for over a century to gain a minimum level of income, barely enough to feed, clothe and house themselves and their families, are now losing all those hard fought gains to a bunch of oligarchs. These oligarchs comprise the shadow government. And the roar and din of wars, famine, environmental decay and other massive problems we face is creating a general confusion and fog preventing us from seeing reality.
So rumor has it, after the market dive of the past few days, the Fed will introduce QE 3, another round of printing money for their member banks. Does anyone who is sober actually believe the drivel that another round of printing trillions of dollars at the cost of the US taxpayer will have any impact whatsoever on the root cause of our economic problems? The Fed's use of the discount rate and their ability to print money out of thin air has been abused beyond imagination. If you had cancer and your doctor told you to take aspirin and go to bed and every time your condition worsened he prescribed the same, after a while you would know he was incompetent. Nonetheless, the Fed continues to push the only two buttons it can and these tools have no effect on the underlying problem. Until our leaders are willing to push back against this banking and oligarchic cartel our jobs and economy will speed up its downward spiral. Given who pays their paychecks this is unlikely to occur. And even if it did, don't expect our economy to return to what it once was. We are now in the middle of a permanent sea change. After the dust of this perfect storm settles our economic outlook will be as bleak as any third world nation.
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