More QE? Look At Facts, Not Claims


For those who are history-challenged.

But wait….. Bernanke has said that the point of QE is to lower long-term interest rates!

So what has it actually done?

It’s raised them.

And what hasn’t it done?

Broken the back of deflationary pressures.

That makes two lies.

It hasn’t broken that back because it can’t.  It’s not “deflation”, it’s the reversal of the credit inflation that was shoved into the system through the various lies and scams of the commercial banks, all backed up by, enabled and made legal through acts of the federal government and Federal Reserve.

Reversing unsustainable monetary inflation is not “deflation”, it is normalization and the longer we try to maintain that inflation the more we compound the damage that must be accepted before the economy can clear!

If “QE” had worked the 10 year Treasury yield would be more-or-less back to normal.  Interest rates would be as well.  Monetary policy would be “normalized” by now — remember, QE was initiated in 2008!

Four years later it hasn’t worked and it is time to call the curtain down on this outrageous scam.

One must ask: For how long do you get to be serially wrong — after being wrong about “housing won’t impact the broader economy” (and virtually everything else) and not get called on it?

The simple fact of the matter is this — QE is nothing more than the intentional destruction of purchasing power of the common person with the hope and intent that those who have their purchasing power destroyed can shift their “musts” to the government teat.

If they can’t they starve (and presumably riot.)   If they can the con goes on — for a while.

But as you’ve seen in Greece and now Spain, it does not go on forever.

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