Skip to content

The Fed Saved the Economy, Right?

July 13, 2012

Image

That’s certainly what CNBC is reporting, professing that “without the gains in anticipation of a positive Fed action, the S&P 500 would stand at just 600 today, rather than above 1300.” Well sure, if you print enough money you could get the S&P to any value you want. There’s a reason the price of gold has more than doubled since the collapse of 2008 (chart). And there’s a reason why CNBC itself reported that using the same methodology we used only a few decades earlier, annual inflation stands at around 9%. So sure, Helicopter Ben can make stocks go as high as he wants. But it’s not real growth. He’s just perpetuating a precarious, bubble economy through artificially low interest rates. An economy that needs to collapse in order for a real economy on a concrete foundation to flourish in it’s place.

Advertisements

From → Ideology

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: