| | | The epicenter of the problem is the Federal Reserve. QE and ZIRP were nothing more than Socialism for the Big Banksters and their executives, who paid themselves rich bonuses with the largess from those programs. TARP was more Socialism for the 1%, in that it hoovered up all the toxic loans the banks had on their balance sheets, which were in default or on the verge of default, putting those assets on the Fed's balance sheet with newly printed money. That succeeded in recapitalizing the big banks, but at huge expense to the 99%. Once the big banks were performing well, the executives paid themselves big bonuses and big dividends to shareholders. This is why the rich are now richer than ever and the wages of the 99% have stagnated. Nothing was done for the 99% coming out of the financial armaggedon that the banks themselves created.
I read an article that said that all bad ideas usually eat their creators. Socialism for the 1%, otherwise known as QE, ZIRP, and TARP, were bad ideas that further enriched the already rich. So basically, money printing for the rich. MMT is simply the equal and opposite reaction to the Fed's monstrosities. MMT is Socialism for the 99%.
This is why all true fiscal and monetary conservatives should be speaking out exactly right now. Anyone who was for QE, ZIRP, and TARP when it happened should be given no credibility today. BTW, you know I am a Trump voter, but I do not like that he is calling for QE4 and looser Fed policies. During his campaign he was against loose Fed policies. I understand he wants looser policies to help with his re-election, but the Fed is an unmitigated disaster, not just for the long term health of our economy, but also because their actions are now having disastrous political consequences that is fueling the rise of Socialism among the people who were screwed over by the rigged system of the Fed.
Let's you and I both acknowledge the true root causes of the problem, which are perpetrated by the Fed. Once we agree on that, we can debate if Socialism solves those problems, which I believe they don't due to a long and well documented historical record, or if rooting out corruption, cronyism, and monopolistic corporations is a better answer with a well documented historical record of success. |
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