Sunday, May 7, 2017

Papering Over The Roadkill With Printed Money

Nothing was learned in 2008. A free money bailout for gamblers rescued fake wealth, while the real economy went under the bus. Subsequently, another fake asset bubble has given Central Bank-sponsored billunaires cover to paper over what happened in 2008, as if it never happened. According to them, that was a just a speed bump along the way to their ever-greater riches, regardless of how wealth inequality has exploded along the way.

The real problem are the lamestream corporate media who still gives these robber barons air time. Where would their wealth be right now without the lowest interest rates in 5,000 years and $12 trillion in newly printed money? Does anyone ever ask?

Warren Buffett likened unemployed workers to animals that are helpless to avoid car crashes, and said the U.S. must do more to help those displaced by competition from overseas and technology.

“Nobody should be roadkill”

“It would be no fun to go through life and say I’m doing this for the greater good, and so that shoes or underwear was all for 5 percent less.”

it is up to the president, whoever is in office, to serve as an “educator-in-chief” and explain how free trade helps the country in the long run.

Rewind one year:

The numbers are daunting if not shocking: $12.3 trillion of money printing, nearly $10 trillion in negative-yielding global bonds, 654 interest rate cuts since Lehman Brothers collapsed in 2008.

Those actions have resulted in global growth in advanced economies that likely won't eclipse 2 percent this year

[Actually, U.S. 2016 GDP growth was 1.6%, against a -3.3% Fiscal deficit]

The cocktail of QE, ZIRP and NIRP has been a potent one for Wall Street and the price of financial assets

Paulsen thinks the Fed needs to move ahead with normalization despite some recent hiccups, as it would send a positive message that the FOMC believes the economy has stabilized enough to withstand some modest tightening.

"We've never tried to treat confidence, and I don't know that we shouldn't at least give it a stab"

Fast forwad to fake "confidence" as an economic policy:

And confidence is high

After the close Friday: