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Stockman nails it again

September 14, 2012

David Stockman to Fed: Say No to QE3

Are our problems really as simple as David Stockman expressed in the video link above? They absolutely are. And yesterday, the markets waited with baited breath to see the next move by the Fed. Where are market fundamentals? They were crushed under monetary policy gone wild! The Federal Reserve is living it up like it is spring break and there will be no repercussions from their unprecedented manipulation of the financial markets. And the financial markets cheer them on. I imagine a rather unsightly image of Greenspan and Bernanke frolicking down Bourbon street during Mardi Gras with the big financial institutions (the too big to fail banks) leaning over the railing of their balcony and offering to throw our Central Bankers their fake beaded necklaces to, “see what they got.” What is really comical is that the Fed won’t disappoint, they would do it for less than a five cent necklace!

Stockman is right and we have pointed out the same thing on this blog. All this ill-advised intervention and manipulation comes at a huge cost to the financially responsible and the savers. But I would add as a footnote that the biggest savers in the world are pension systems!! Here is my question: How do you recover a pension plan that has to overcome terrible monetary policy and leveraged risk taking (gambling) on Wall Street that imploded all our financial markets to begin with, when we double down on this same monetary policy that sends a message to the financial markets that they will be rewarded for their gambling habits? Wall Street controls our nation’s politics and our Central Bankers ensure that the game will remain rigged for those with the current power — those who control the money!

  1. John Hughes permalink
    September 14, 2012 9:57 am

    Here is what I think it going on with the Fed Reserve: Mit Romney, during an interview, clearly stated that if he was elected president, Bernanke would be gone… replaced…. fired! With that said, Bernanke has a clear cut choice: he can postpone or just not do QE3, or he can do it, sent markets into a frenzy… as well as inflation, which produces two by products that look good for this administration. With inflation up, and the markets temporarily producing profits, there is no doubt GDP will “appear” to have expanded (even though that’s clearly not the case). This move was soo political there really is no other “reason” why they would do this. This is just adding more bandages to the gushing wound instead of stitching it up. This move is going to hurt us so bad in 2014-2015. All I can say is buy gold/silver and save save save.

  2. Gordon Long permalink
    September 21, 2012 1:30 am

    consumerism is not a good thing: we buy what we don’t need, put it on credit and then worry about the bill. I am afraid if we stop buying the economy will stop. Why cannot we us the big government ( called redistribution) to hire the infrastructure people to build the roads, build trains and instead of a gazillion people in china cranking out shirts we could have equipment operators working American made equipment making things we all need. The money would trickle all over and in the end our shirts would be older and our infrastructure newer. Printing more money seems to just make wall street richer as it is a money magnet. The government seems to think that a full blown overtime working industry is the way to go but what if they are building stuff that does not needed, just fluff while they go to work on bumpy roads and medical/scientific research goes down. We all benefit from the research and anyone that does not understand that needs to go back to watching the sitcoms: it is a complex world with many people gaming it. Populists need to think for a change.

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