Monday, June 22, 2015

Fed Destroyed the Economy, QE 4 Now Guaranteed

Financial expert Peter Schiff contends, “We have destroyed this economy. The Federal Reserve has prevented capital investment, entrepreneurship, economic growth that is real. Instead, we have diverted all these resources to sustaining asset bubbles to keep the stock market up, the real estate market up, to fund debt for education, housing and health care. We are strangling the real economy, and Main Street can feel it. Even though Wall Street is ignoring the pain on Main Street, you can see all these protests that have picked up.”

So, is another round of money printing, or QE, a lock? Schiff contends, “Oh yeah, the minute they did QE, 3 QE 4 was a lock because whenever you do a round of quantitative easing, you cannot stop without doing it again. If you take drugs and you want to stay high, you need more drugs. Otherwise, you go through withdrawal. Whenever you get the economy high on QE, if you take away the QE, you take away the high. That’s why we are going back into recession. To pretend that you can have an economy on cheap money, and you take away the cheap money and the economy is going to endure, is nonsense.

- Source, USA Watchdog