Thursday, January 31, 2013

Magician Economists Like Bernanke Can’t Pull Prosperity Out Of A Hat

by Matthew Melchiorre on January 30, 2013 · 0 comments
Inflator-In-Chief Ben Bernanke defended today his third round of quantitative easing and additional $45 billion monthly purchases of U.S. Treasuries (totaling $85 billion per month in Fed balance sheet expansion) as efforts to combat “transitory factors” dragging down the economy. Yet there has been nothing “transitory” about the almost five-year recession lasting since 2008.  As I explain in Forbes, Bernanke is no more than a magician attempting to paper over the real problems within the U.S. economy with the sleight of hand of the printing press. Ultimately, he and his central banker cohorts cannot defy a fundamental law of economics known as Say’s Law: People supply what they demand.  By focusing solely on demand-boosting measures, inflationary economists do not address the root cause of the current malaise…….Printing money isn’t just ineffective. It’s redistributive and distortionary….To Read More…

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