QE does create inflation. You are wrong about that. The Fed's statistics are flawed. They literally remove all the things that show massive inflation. Just take a look at health care, the costs of universities, the price of all assets, and housing. We've seen massive, truly gigantic increases in prices in each of those areas over the last 10 years. QE is absolutely real money. The transmission mechanism is to lend money to the Fed banks at 0% rates. The Fed prints money creating digital money in the Fed Bank accounts, which they then use to buy Treasuries and Mortgage Bonds and anything else they are now authorized to buy. The Fed Banks get to keep the interest and they pay 0% back to the Fed. The people closest to that money are the executives of the banks, who then pay themselves massive bonuses, salaries, and stock options/units. They then use that money to live large. Some of it trickles down to the rest of the economy, but it is crumbs in comparison to what the 1% get from being first in line at the trough.
So what we get is massive asset price inflation from QE, but the 99% gets wage stagnation, even as the things they need the most like housing, health care, and education go up massively in price.
This is a con job of massive proportions and both the Democrats and Republicans have been in on this game since Bush Jr to Obama and now Trump. No one is innocent.
QE, MMT, UBI, ZIRP. These are all killer acronyms to a Capitalist economy and they guarantee the destruction of the 99%, even as they enrich the 1%. This creates exactly the social instability we see now. The 99% begin to blame Capitalism, even though this is not Capitalism, but the pure implementation of Communist Central Economic Planning. Then conmen like Bernie come in and in a disingenuous twist of shilling claims that Capitalism did this and the 99% believe him, because they are economically illiterate.
True economic historians will mark the Great Financial Crisis Recession and the COVID Greatest Depression as the two events that destroyed US Capitalism and began the full throttle implementation of Communism, skipping right over Socialism on the rush to fix what was not broken. And this won't just be an economic transformation. Our culture has already been changed to censor what we say and now great new powers are being assumed by our Governors, Mayors, Congress, and our President. These powers won't go away after the crisis is over, just like the powers to stop terrorism did not go away, but were then used to spy on Americans themselves after 9/11. The state take over and control over our lives has reached the exponential growth phase.
Capitalism and Freedom itself is now in critical short supply in this country, along with masks, ventilators, economic education, and common sense. God help us all. |
