Japan’s stock market crashed in 1989. Since then, the no-luck Japanese have had sluggish growth, recession, and on-again/off-again deflation.
Is there any smarter group of Homo sapiens on the planet? Or in all of history? We’re talking about Fed economists, of course. Not only did they avoid another Great Depression by bold absurdity…giving the economy more of the one thing of which it clearly had too much — debt. They also carefully monitored the … Read More
Not only will bondholders pay to lend money to governments but also anyone with a bank deposit will be charged to save money.
Economic growth rates are falling toward zero. And at zero, it normally doesn’t make sense for the business community — as a whole — to borrow.
Twice in the last 15 years, markets have tried to correct the mistakes and excesses of the Bubble Epoch.
After seven years of the Fed’s ZIRP, short-term interest rates are expected to begin moving back to ‘normal.’
When the price of new money — as set by the Fed to its best customers — is almost zero, who knows what other things are worth?
The Federal Reserve has not, is not and will not ever bring about a recovery. The recovery will happen on its own…when the economy is good and ready.
QE and ZIRP are essentially new forms of wealth. Whoever gets this wealth first gets richer. Everybody else gets, relatively, poorer.
What’s wrong with QE? It doesn’t seem to be working. Worse than that…it’s lethal! No kidding. QE KILLS. But where were the health warnings?
The Federal Reserves policies are not bringing about a recovery. They’re bringing poverty. They’re suppressing, repressing and depressing a real recovery.
There is no genuine recovery. It’s all the smoke of ZIRP and the mirrors of QE. When the magic show ends…so does the illusion of recovery.