Wednesday, June 01, 2016

QE Is A Reckless, Misguided
& Economically Fatal Conceit
"The intentional encouragement of speculation by central banks in recent years has created a situation from which no resolution is possible other than 0-2% investment returns on a 10-12 year horizon, and a market collapse over the completion of the current market cycle. We are under no delusion that central banks will abandon their attempts to distort the financial markets, but bear in mind that monetary easing is only effective in encouraging speculation when investors are already inclined to speculate  .. When investors are risk-averse, default-free liquidity is a desirable asset, not an inferior one, so producing more of the stuff is ineffective in provoking speculation.
In the full light of history, QE will be regarded as reckless, misguided & an economically fatal conceit."
[Cliff says: Keynesian Economics itself is a fatal conceit .. believing that ELITE AUTHORITIES know better than millions of people who could otherwise be free & be allowed to make free choices]
- John Hussman
LINK HERE to the essay

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