And that, in turn, will slow business and consumers even more. Some demand-side boneheads on Wall Street want the Fed to move to QE3, allegedly to fight a stalling economy. But if the central bank prints another $600 billion or so, all that will do is sink the greenback another 10 percent and drive oil and gasoline prices higher and higher.
Sammyboy, the government doesnt know sh!t about investing into anything. As everything the government puts money into is filled with fraud, behind scedule, massive cost overruns, and is dominated by unions. Besides, the government could do better with bridges and roads if they didnt waste money on programs that dont work at all.
How do you think that happened? Inflation is a hidden tax on savings, and it always hits the poor and middle class the hardest. The folks who get the "new money" first are almost always well-connected wealthy folks, which is why you see Wall Street and the financial sector humming along, completely divorced from the painful reality the rest of the country is currently experiencing.
Recently, 35% of all corporate profits were earned by finance, insurance and real estate (FIRE, sorry for the pun). On balance, this is the direction so much of the country has gone. We've done hardly anything but unwind the regulatory clock on these industries. John Stossel's America would be the one we've already seen, when the country could only go a few years between bank panics.
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