Wednesday, December 15, 2010

Quantative Easing Revealed - It's an Episode of the Twilight Zone

This video is hilarious. It's a bit long, digresses some, and I don't know if the negative references to Goldman Sachs are correct or not. But it does reiterate one of my concerns, which is that the FED is not letting the economy correct through deflation. (Approximately 38 seconds into the video)

In terms of deflation, the video successfully spoofs Bernanke's quantitative easing, dumping money into the economy, as a means of promoting employment growth. The evidence, I believe, is clear that quantitative easing is NOT creating employment. The issue is that people are not buying. If people do not buy, private industry has no incentive to create jobs. So all the programs and tax credits to business for job creation are a waste of the taxpayers money. As one of the video characters pointed-out our economy is an episode of the Twilight Zone.

UPDATE: Since posting I ran across this article in Forbes: "Bernanke Wants A $10 Three-Piece Chicken Meal" by Rich Karlgaard.  Essentially it reiterates that the FED is pushing inflation. And as the video above points out inflation will hurt those in the lower income and without jobs.  Steve Forbes also has an editorial: "Why Ben Is Addicted To Failure"


Pat Mullen said...

I think I will bang my head against the wall ...

Steve R. said...

With or without padding?