MW: Oct. 20, 2014
I don't know why this Ayn Rand acolyte wants to ignore income inequality, and I'm afraid to look.
So, instead here's the real answer:
1) Because 0% interest rates have discouraged long-term investment in the real economy
2) 0% interest rates incentivize current consumption and debt accumulation, over savings
3) Monetary policy subsidizes deficits and allows game show hosts to borrow future generations into oblivion while campaiging 24x7
4) Because printing money to buy stocks is the dumbest fucking idea in human history and will end in violent collapse (see Japan for the mild version of the roller coaster ride to oblivion).
The Fed (Richard Fisher) admitted today that QE leads to "indiscriminate" gambling
IMF Sept. 18th, 2014: "QE Encourages Excessive Risk Taking"
IMF Sept. 18th, 2014: "QE Encourages Excessive Risk Taking"
5) Because low interest rates sponsors debt-funded dividends and stock buybacks as a proxy for business innovation
6) Because 0% interest rates have destroyed pension funds premised upon a long-term rate of return in the 5-6% range, as it has been historically
7) Because the "savings glut" that makes 0% interest rates possible is really just imported Third World deflation which needs to be addressed before we all become Third World.
Too late.
8) Because everyone has already stocked up on ammunition and it would be a shame to waste it
And the real reason why the Fed shouldn't focus on income inequality (drum roll)
(Sorry, I can't count)
