New Bubbles Are A Brewin’

Wisdom from here:

Ben Bernanke and his colleagues at the Federal Reserve, for example, have refused to acknowledge that by keeping interest rates at zero “for the foreseeable future,” they have begun to generate new bubbles in financial assets and overheated the economies of developing countries, where much of the money is going. These are many of the same folks, after all, who once claimed they couldn’t see the credit and real estate bubble developing right under their noses — and, once those bubbles burst, rejected criticism that overly loose monetary policy might have been a cause.

Point of my film. That said, I disagree completely with a ‘fix’ he mentions — more government spending.

5 thoughts on “New Bubbles Are A Brewin’

  1. Allegiance to fiat currency, and ever higher doses of it, displays all the characteristics of addiction, including denial, rationalization and compulsive repetition.
    Apt use of terms like “fix” and “stimulus” not accidental?
    Anyone else worried about capital controls + draconian restrictions on trading in our future?
    Followed by confiscation?

  2. Sigh…ALL ABOARD for the maiden voyage of the “QE 2”..! Yes, I’m afraid it’s time to brace for more Quantitative Easing.

  3. “Anyone else worried about capital controls + draconian restrictions on trading in our future?”

    Not worried. Money moves where it’s treated better. Fear of capital flight will prevent any real change.

    “Followed by confiscation?”

    Currency devaluation is more likely, because it’s invisible to the average person. You know how the USGOV has been making it much harder for individual American’s (not corporations though of course) to have bank accounts in safe havens? It’s not just about the taxes. They want to block the exits.

  4. Hmm.
    “Money moves where it’s treated better.”
    Such as where, would you say? An anxious public wants to know…

    “Fear of capital flight will prevent real change.”
    Capital’s already flying, ain’t it? Into gold, out of Euro’s, &, at a grass roots level, out of dollars – & won’t the merry-go-round continue, a downward spiral, even if protracted?

    “Currency devaluation is more LIKELY (emph. added)?”
    As in: It ain’t started yet? Seriously?

    “…block the exits.”
    Suppose it’s not a matter of blocking, but of tracking?
    Gene, with respect, I think you’re contradicting yourself – but, feel free to correct me here…

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