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The Fed Saved the Economy, Right?

July 13, 2012


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.


From → Ideology

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