Tuesday, April 1, 2014

Free Money Forever

Fed Chair Janet Yellen will continue quantitative easing for the foreseeable future, supposedly to foster job creation. This "easy money" is a continuation of the strategy of her predecessor Ben Bernanke. Did robust employment flow from Bernanke's policies? Obviously not, there would be no need for Yellen to boost employment if Bernanke had been successful. So why should a continuation of a failed policy suddenly work now? Certainly, institutional and high end investors have profited mightily from the Federal Reserve's lack of discipline in recent years, but at some point, the chickens will come home to roost, first with inflation and then perhaps with hyperinflation. With the fiscal and monetary policy of Obama and Yellen, prosperity is in the bag. Unfortunately, thrift and industry no longer provide access to that bag, but dole dwelling parasites (who the rest of us now work for) and crony capitalists are allowed to reach right into that bag in the dependency state and culture of corruption under which we now live.

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