"The Fed Is Laboring Under A Dangerous Delusion"

by JASmius



Your Monday installment of....

The easy money antics of the Federal Reserve and other central banks are delusional and bound to lead to a global crack-up, according to Yale University economist Stephen Roach.

Roach, former chairman of Morgan Stanley Asia, suggested the "big bazooka" of quantitative easing....

i.e. Printing avalanches of fiat wastepaper to create the illusion of economic recovery.

....has led to inflation of assets like stocks and encouragement of currency depreciation — ingredients for disaster.

"The world economy is in the grips of a dangerous delusion," he declared in a column for Project Syndicate.

Indeed; and its name is Obamunism.

"Not only have wealth and currency effects failed to spur [any] recovery in post-crisis economies, [because the crisis never ended] they have also spawned new destabilizing influences that threaten to keep the global economy trapped in a continuous series of crises."...

....for Barack Obama to exploit....

Despite the failure of Fed policy, Roach noted both Europe and Japan have rushed to imitate U.S. quantitative easing.

See?  O does too have international influence!

"As the baton of excessive liquidity injections is passed from one central bank to another, the dangers of global asset bubbles and competitive currency devaluations intensify," Roach wrote.

When we collapse, everybody will go down with us.

"Relying on financial engineering, while avoiding the heavy lifting of structural change, is not a recipe for a healthy recovery."

It's not a recipe for recovery, period, but permanent economic depression.  Which we just happen, TOTALLY COINCIDENTALLY, to be in.

And it isn't financial "engineering"; more like financial fraud.  "Structural change" is, you know, a return to free-market capitalism, and we sure as heck can't do THAT.  Wouldn't be moving "forward," y'see.

Over the cliff, that is.