04/17/2015 - Financial Repression is Making Economies Less Dynamic
American Thinker posted essay emphasizes the negative, long-term effects of massive money printing through quantitative easing (QE) & of the zero interest rate policy (ZIRP) .. it’s all about the financial repression of interest rates – the thinking being that if this were not done, the pain of allowing the free markets to determine interest rates would be unbearable – “One need only imagine the bipartisan political panic were the interest paid by the U.S. federal government on its debt to double or triple, squeezing out hundreds of billions of dollars of spending on military and social programs. It is becoming ever more obvious to ever more people that sustaining these ‘financial repression’ policies is making economies ever more comatose; ever less dynamic. Exactly when the accumulating long-term economic damage becomes more onerous to central bankers and politicians than the short-term damage of ending QE and ZIRP can’t be known. But that inflection point will come, desired or not; willed or not. It is not avoidable.”
