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April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review July 24, 2013/ 17 Menachem-Av, 5773

Fed pursues crony capitalism

By Dick Morris




http://www.JewishWorldReview.com | How can Federal Reserve Chairman Ben Bernanke justify his decision to approve another round of "quantitative easing" by citing the lack of an assured recovery in the U.S. economy?

How can he pretend that his decisions to continue or discontinue the wholesale printing of money and to maintain or end interest rates near zero percent have anything to do with unemployment or the inflation rate?

The obvious fact is this third round of quantitative easing (QE3), which has been going on for nearly a year now, is not filtering down into the mainstream economy. Whether or not other forms of trickle down work, this one sure doesn't. The quantitative easing has done nothing to increase the anemic growth rate that remains mired in the 1-2 percent range despite the printing of as much as $85 billion each month. The flow of newly minted money goes directly into the top echelons of our financial establishment — banks and brokerage houses — as the nation's richest executives use the funds to pay for their gambling habits in stocks and derivative bets.

Crony capitalism has taken over the government. The Fed prints the money. Then it gives it away for no interest and in exchange for moribund mortgage-backed securities. The recipients gamble the night away playing the stock market and the $1.4 quadrillion derivative market, content in the assurance that if they fail, the feds will guarantee them and prop them back up. Too big to fail covers their downside risk. Free money encourages their upside gambling.

Record bank profits amid a stalled economy attest to this ongoing misdistribution of resources. Crony capitalism and big government advance in tandem, making the very rich much richer and leaving the rest of the economy in dismal shape.


The stock market — recipient of the funny money — has investors hypnotized. They pay no attention to the near-zero economic growth rate or the miniscule job-creation numbers, instead focusing on the dizzying heights as the Dow sets daily records. But the Olympian levels are themselves artificial, impelled by quantitative easing, which puts free money in the hands of the banks and brokerages that they can invest in the market as they wish. At some point soon, they will tire of the game and pull their money out. And the market will crash.

Quantitative easing increasingly resembles the foreign aid program. The U.S. taxpayer sends tens of billions of dollars overseas in the idealistic expectation that the money will alleviate poverty and suffering in the third world. Instead, dictators and petty tyrants pocket the money and send it abroad to their Swiss bank accounts for safe keeping, all the while pleading for more aid to their countries' poor.

When Bernanke says he will end QE3 when the unemployment rate drops to 6.5 percent or inflation rises above 2 percent, he is citing ridiculous and irrelevant yardsticks.

The only way unemployment is going to drop in an economy as moribund as ours is if a sufficient number of us are persuaded to give up looking for work and drop out of the labor force as a result.

The inflation rate will likely remain comfortably below 2 percent as long as you continue to exclude food and fuel from its calculation, the two most inflation-sensitive aspects of our consumer spending.

Of course, Bernanke is not limited by these statistics. He is limited only by the greed of his cronies, so QE3 will continue on and on.

Dick Morris Archives


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© 2013, Dick Morris

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