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Multiple Fed QE rounds failed. Phantom data conceal dire conditions. Economic growth is weak. It's faltering. Real unemployment's 23%.
Nearly 25 million Americans remain jobless. Low-pay/poor benefit part-time or temp ones replaced full-time ones. Inflation's around 9% based on how calculated decades earlier. Poverty or close to it affects half of US households. Record numbers need food stamps.
Kuroda thinks like Bernanke. "We all know how this will end," says Summers. He expects disaster. Every inflated bubble pops. "This time will be no different."
"The lessons from Cyprus are obvious." Warning signs appear early. Cyprus first requested bailout help last June. Months later, it's entire banking system shut down. Unsecured depositors stand to lose most of their wealth. Some may lose everything.
Eurozone economies and America are troubled. So is Japan. Doubling down on what failed for two decades won't work. Expecting different results from doing the same thing repeatedly reflects insanity.
In 1988, Bernanke knew QE didn't work. Two Fed economists explained. Seth Carpenter and Selva Demiralp headlined " Money, Reserves, and the Transmission of Monetary Policy: Does the Money Multiplier Exist? "
Their conclusion:
"In the absence of a multiplier, open market operations, which simply change reserve balances, do not directly affect lending behavior at the aggregate level.""Put differently, if the quantity of reserves is relevant for the transmission of monetary policy, a different mechanism must be found."
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