The political and banking classes both demand easy money right now. (They always want it.) Print more and more money and the world will continue on as it has (limping that is) for the past 5 years. This is the “new normal.” Sure it’s corrupt, sure it’s counterfeiting, sure it encourages unsound economic and political decisions, but hey we need to do what we need to do.
If one wants to get paid and one is OK with suckling at the teet of the American taxpayer, DC is the place to do it. It is the capital from The Hunger Games movie. It is here that the wealth of our nation is aggregated. The hinterlands pay their tribute to the massive bureautropolis which straddles the Beltway and stretches into the countryside of Virginia and Maryland.
In the opinion of many in Washington, you the American citizens, exist to support them.
Sure the Community Reinvestment Act (a totally crony law) had something to do with housing’s abrupt rise and fall in this country. And there were other factors besides Fed policy. But the primary reason why the global housing bubble, and before that the tech bubble, blew up and then collapsed is because of the easy money policies of one Alan Greenspan.
Will Janet Yellen, nominated by President Obama to head the Fed, provide a reasoned defense of current Fed policies in her upcoming Senate confirmation hearings? It isn’t likely.
This a good piece from The Huffington Post. It gets a lot of things right. Many executives at federal contracting firms are making a mint. Given that taxpayers are ultimately the ones paying for the services of the contractors, and since these contracts pretty much fall outside of normal market mechanisms, special scrutiny should be applied to all compensation.
Poland is raiding the accounts of retirees. Italy is likely to do the same soon. New Zealand and even Canada (according to the attached article) are seriously contemplating seizures of retirement assets. One would be foolish to assume that American leaders are not thinking along similar lines.
Looks like David took the summer off, but he’s still mad as hell.
In order to understand what is really going on in the economy one must have some understanding of the Federal Reserve. It is a truly amazing and diabolical institution created not for the public good as we are told, but in fact Murray Rothbard asserts, for the private good of the world’s largest banks.
Great news. Summers should absolutely not be Fed chair. The problem is Yellen and the other candidates shouldn’t be Fed chair either.