A great article from Noureddine Krichene on why it is that our economy continues to languish. Printing money does not create wealth, but it does eventually create inflation, as we are now starting to see in earnest. Not that the official numbers reflect this as they have been massaged and manipulated so as to keep the general public in the dark. (Until it’s too late.)
We now have a situation where inflation is bubbling up, war is again right in front of us, unemployment remains high, and the American population feels uncertain about its future.
These things are a direct result of dishonest monetary policy, yet so many (especially our leaders) continue to fail to see this.
(From The Asia Times)
Bernanke does not understand capital and growth theory. He does not grasp that money creation is not capital creation. Technically, his quantitative easing is counterfeiting, which only steals wealth from losers to hand it to profiteers. Technically, he is no different from jailed Ponzi schemer Bernie Madoff or disgraced Goldman Sachs trader Fabrice Tourre. Counterfeiting can lead to fast consumption of capital and worsening poverty.
Likewise, Obama does not understand that large deficits, high taxes, and inflation cripple economic growth. Unproductive government spending and currency depreciation are no stimulus to the economy. They steal away savings, reduce real wages, and overtax the economy.