The US Productive Sector Recession(s)
Posted by freedomforall 1 year, 8 months ago to Politics
Excerpt:
"Quantitative easing was designed as a tool to provide time for governments to implement structural reforms, boost growth and strengthen the economy. However, it has become a tool to increase the size of government and take increasingly riskier levels of debt.
The United States economy has not strengthened in the period of enormous fiscal and monetary stimuli, as the latest data shows. It needs increasing units of debt to generate a new unit of GDP, productivity is extremely poor and leading indicators are negative.
The main problem of loose monetary policy is that it massively increases the size of government on the way in, through debt and deficit spending monetization, but it also expands government on the way out as rate hikes and liquidity constraints impact households and small businesses but deficit spending and rising public debt remain. This “tightening” period is particularly negative in this crowding-out effect because the government is presenting every week new spending packages while the Fed tries to contain inflation curbing demand growth. The public sector is unaffected by the normalization of monetary policy, but the private productive sector suffers the crunch.
When the central bank tries to reduce inflation with rate hikes and monetary contraction but the government increases spending and keeps an astonishing pace of indebtedness what follows is wealth confiscation and stagnation."
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Every action of government results in larger poorly run big government and more efficient small business is crushed.
Nuke the government and the banking/wall st. cartel. It's the only way to revive free enterprise and free markets.
"Quantitative easing was designed as a tool to provide time for governments to implement structural reforms, boost growth and strengthen the economy. However, it has become a tool to increase the size of government and take increasingly riskier levels of debt.
The United States economy has not strengthened in the period of enormous fiscal and monetary stimuli, as the latest data shows. It needs increasing units of debt to generate a new unit of GDP, productivity is extremely poor and leading indicators are negative.
The main problem of loose monetary policy is that it massively increases the size of government on the way in, through debt and deficit spending monetization, but it also expands government on the way out as rate hikes and liquidity constraints impact households and small businesses but deficit spending and rising public debt remain. This “tightening” period is particularly negative in this crowding-out effect because the government is presenting every week new spending packages while the Fed tries to contain inflation curbing demand growth. The public sector is unaffected by the normalization of monetary policy, but the private productive sector suffers the crunch.
When the central bank tries to reduce inflation with rate hikes and monetary contraction but the government increases spending and keeps an astonishing pace of indebtedness what follows is wealth confiscation and stagnation."
----------------------------------------------------
Every action of government results in larger poorly run big government and more efficient small business is crushed.
Nuke the government and the banking/wall st. cartel. It's the only way to revive free enterprise and free markets.
