Web 2.0 Authors: Imran Akbar, Roger Strukhoff, Elizabeth White, Kevin Benedict, Liz McMillan

RSS Feed Item

Bernanke is Dr Strangelove

Or how I learned to stop worrying and love Quantitative Easing.

This is it, the US pressed the nuclear button, buying its own treasuries in order to flood the market with paper and depress long term rates.

Theft on a grand scale, international theft at that. The masses timidly applaud. The dollar tanks, the US markets rally. Why do they rally? QE is effectively delayed "inflation". Inflation means you are poorer but the numbers are up so you feel "richer". Inflation is an unfair tax as it is essentially a flat tax on the poor. More fair would be debt moratorium on fake money issued by banks, how practical that would be I have no idea. In the meantime and from distance, the US continues floating banks with taxpayer money via inflation and QE and no one is the wiser for it. What lack of basic financial education will do to an otherwise healthy democracy...

I am not blaming Bernanke either. He is applying the rule book he wrote studying the great depression, let's hope Dr Strangelove is right about this. Only a combination of QE and debt moratorium will float banks at this point. It is a great defrauding but as long most americans believe they are living in a free democracy it will fly without most people batting an eyelash. As long as the Chinese keep buying the depressed treasuries ("we hate you guys!") then it is all good.

Goodspeed and may the great Obama protect our bodily fluids and our green juice!

Read the original blog entry...