While the mainstream financial press pretends that quantitative easing is a “liberal” economic policy, nothing could be further from the truth.
As we’ve repeatedly explained, quantitative easing is a bailout for the super-rich, at the expense of the little guy. It increases inequality and fails to stimulate the economy. (And it destroys the savings of retirees.)
Indeed, Fed boss Ben Bernanke knew 24 years ago that quantitative easing doesn’t help.
Forbes’ Lawrence Hunter explains:
The Federal Reserve … operates its own financial Laundromat for troubled, in some cases criminal banks. The Fed’s loan laundry and downscale resale consignment shop first takes in the wash by purchasing non-performing, and therefore largely worthless financial assets (loans and loan-backed securities) to remove them from the books of private banks. (Another variant is for the Fed to swap the banks’ bad paper at face value for federal debt instruments, which replaces the banks’ non-performing assets having little, if any, resale value, with safe, interest-paying and highly marketable assets.). The Fed then launders the loans by reselling them back to the same group of banks at a fraction (10 percent or less) of the face-value price it paid the banks for them. Once the banks repurchase the spiffed up dirty loan laundry, it not only has turned a nifty 90-percent-or-more profit on the turn around, it also has a new asset it can put back into the stream of financial commerce at a price reflective of its true value. Read more...
Dollar devaluation is the tool the elite uses to destroy the middle class, the real goal of progressives. They want you back on the plantation, not living like an uppity free slave. Interest rates in realitity should be north of 10%. That sucking sound you hear is the value of your hard earned dollars drying up in your savings account.. Non stop QE and zero interest rates will turn us into Zimbabwe.
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