Former Fed Officials on Quantitative Easing: “A Feast for Wall Street”, “Legalized Bank Robbery” and “High Grade Monetary Heroin”
By Stephen Lendman
Global Research
November 15, 2013
Andrew Huszar is a former Fed official. In 2009 and 2010, he managed its $1.25 trillion mortgaged-backed security purchase program.
He’s a former Morgan Stanley managing director. He’s currently a Rutgers Business School senior fellow. He’s a QE confessor.
He witnessed Bernanke’s scam up close and personal. It benefits Wall Street. It ignores Main Street. Bernanke planned it that way.
Investopedia calls QE “monetary policy used to increase the money supply by buying government securities or other securities from the market.”
It’s supposed to “increase the money supply by flooding financial institutions with capital, in an effort to promote increased lending and liquidity.”
According to Ellen Brown, QE contracted the money supply. It did so “by sucking up the collateral needed by the shadow banking system to create credit.”
It’s just an “asset swap.” Assets for cash reserves “never leave bank balance sheets.”
QE is counterproductive. It’s self-defeating. It constrains economic growth. It doesn’t create jobs. It benefits Wall Street at the expense of Main Street.
It works when used constructively. Money injected responsibly into the economy creates growth. It creates jobs. When people have money they spend it.
A virtuous cycle of prosperity is possible. America once was sustainably prosperous. Today it’s heading for a slow-motion train wreck.
Former Reagan administration Office of Management and Budget Director David Stockman calls QE “high grade monetary heroin.”
One day, it’ll “kill the patient,” he says. It’s the closest thing to “legalized bank robbery.” It robs poor Peter to benefit rich Paul. It’s recklessly out-of-control.
Dallas Fed president Richard Fisher agrees with Stockman. “QE can’t go on forever because (it’ll) kill the patient,” he said.
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