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Fisher Outs Bubbles Ben: QE Was A Massive Intended Gift To The 1%

• http://www.lewrockwell.com, By David Stockman
But now he has left nothing to the imagination, admitting that Bernanke’s objective all along was to aggressively levitate the price of financial assets and thereby confer massive windfall gains on the wealthy who own most of them. And all this was done in pursuit of some whacked-out, latter-day Keynesian version of “trickle down” economics, which, according to Bubbles Ben, was for the good of the average American—even if they didn’t appreciate it, comprehend it, demand it, or vote for it.
And that’s the heart of the problem. The average American does not need a monetary politburo comprised of 19 more or less self-selected dictators to decide what’s best for them economically. Once upon a time we had a far better decision mechanism called the free market and a wonderful financial market governor called the price of money and debt, aka market-based interest rates.  Under that regime, savers got an honest reward for deferring current consumption and spending; borrowers faced the true economic cost of debt to finance their projects; speculators faced the risk of sudden, sharp changes in the cost of carry when markets got frothy; and investors discovered in the market a valid “cap rate” against which to figure the return on their investments.
 

2 Comments in Response to

Comment by Ed Price
Entered on:

There are two major reasons why QE was necessary in the way it was done. The more straight forward reason is this. Big business is the thing that runs society. If the funds were spread evenly among people in general, most of them would go out and get drunk, or buy Packer tickets, or play the Lotto, or some other such nonsense. Big business was supposed to use the funds to create, well, more business, thereby stimulating the economy. And that is what much of big business did. So, QE worked in that way, somewhat.

The second major reason why it HAD to be done the way it was, was the bribery factor. Most of big business has figured out that all bank loans are really creations of new money, that there are no loans as such, the the whole money game is a farce. Big business was getting fed up with the Fed, and the world banks. They were on the verge of taking matters into their own hands, which included telling the world that the banks are just a humongous Ponzi.

Of course, if big business fell, and if they took the banks down with them, it might be ages before big business would grow back to the size that it has been. But the banks would be destroyed. So, the QE bribe smoothed out big business by giving them enough hope that the banking industry knew what it was doing, and big business became patient again.

If the Fed had done it any other way, we all would be in turmoil right now. We would be in a great depression many times larger than The Great Depression, with no light at the end of the tunnel. Martial law would be in full force. Freedom would be down the tubes... at least for the gentle people. QE has saved us ALL temporarily. But when the final bank flop DOES come, the longer we wait, the worse it will be.

The biggest benefit that QE has given is extra time. And in this extra time, things like Bitcoin, MaidSafe, Mastercoin, Counterparty, and others are being developed so that the people have something to fall back on when the whole banking system finally collapses for real.
 

Comment by Anon Commenter
Entered on:

QE was a massive intended gift to the 1%

(Be sure to read the comments section, in article linked, below)

http://sgtreport.com/2014/03/qe-was-a-massive-intended-gift-to-the-1/


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