Onsdag 11 december 2019


QE on steroids
Tom Woods, Bill Bonner, Argentina, FED mm.

The Federal Reserve’s bailout operations have increased its balance sheet by over 200 billion dollars since September. Investment advisor Michael Pento describes the Fed’s recent actions as Quantitative Easing (QE) “on steroids.” 

Pretax corporate profits – the actual earnings of America’s biggest businesses – have gone nowhere since 2012. But the Dow is up by more than 100%. (Bill Bonner)

Prices, interest rates, a multi-stage structure of production, the international division of labor -- all of these things occur without coercion or a central plan. 

Can it be that we can order our affairs peacefully, without employing violence against each other? 

This is the great insight of genuine social science, and yet it's one virtually everyone resists. It is much easier for people to believe in what I call the military model of society, whereby our important goals are achieved by means of one person issuing commands and everyone else obeying. (Tom Woods) 

Argentinians have voted again for the policies that led to the 2014 financial crisis, and many crises before it. The regime remains inflationary and committed to big spending.  

It’s a classic formula… From ancient Rome to modern Venezuela, there is one surefire way to ruin an empire:

Step 1) Spend more than you can afford, year after year.

Step 2) Build up the military. Not to protect yourself from overseas enemies… but to fight the angry mobs at home after Step 1 backfires.

It’s the easy-money curse, as Bill puts it. And in this week’s Diary, he explores how – from giveaways, to crony deals, to free money – the curse is already haunting America… and things threaten to get worse… (Bill Bonners diary)

Göran Högberg

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