02/04/2017 - Charles Hugh Smith: Central Banks Have Failed To Generate Economic Growth
Charles Hugh Smith: “Rather than be seen to be further enriching the rich, I think central banks will start closing the ‘free money for financiers’ spigots .. The Fed’s QE ‘free money for financiers’ never did ‘trickle down’ to the bottom 95%, and the enormous expansion of bank credit is no longer driving corporate profits higher. There are other factors at work, of course; a global slowdown in trade, for example, a rise in energy costs and a stronger US dollar. All of these impact credit, profits and the share of GDP flowing to labor in wages, salaries and benefits. Whatever the causes, the reality is that the positive results of credit expansion have reached the top of the S-curve and are now declining. Expanding credit, via central bank monetary policy or private-sector bank credit, is no longer boosting profits or wages.”
