There is no recession: It’s a Planned Demolition
by Mike Whitney
What a mess. The Fed has assumed near-dictatorial powers to fight a monster of its own making, and achieved nothing.
Bernanke is in a pickle: If he stops printing; interest rates will skyrocket, stocks will crash and housing prices will tumble. But if he continues, China will dump their Treasurys and there will be a run on the dollar. What to do? Either way, the malaise in the credit markets will persist and personal consumption will continue to sputter.
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Working people are not being crushed by accident, but according to plan. It is the way the system is designed to work. Bernanke knows that sustained demand requires higher wages and a vital middle class. But Bernanke works for the banks, which is why the Fed’s monetary policies reflect the goals of the investor class. Bubblenomics is not the way to a strong/sustainable economy, but it is an effective tool for shifting wealth from one class to another. The Fed’s job is to facilitate that objective, which is why the economy is headed for the rocks
The financial meltdown is the logical outcome of the Fed’s amonetary policies. That’s why it’s a mistake to call the current slump a “recession”. It’s not. It’s a planned demolition.
[ Counterpunch ]
“What a mess. The Fed has assumed near-dictatorial powers to fight a monster of its own making, and achieved nothing. ” -Mike Whitney