Printing Money
The most important takeaway from this piece, Printing Money, and the last piece, Illiquid Assets, is that they demonstrate the language being used to describe what is being done is an obfuscation.
Alternative words are used to confuse people from what’s actually happening. A good example is calling bad debt an illiquid asset, or saying stimulus, instead of taxpayer money. It’s lizard language.
Human Language;
"We need taxpayer money to buy our bad debt”.
Lizard Language;
"We need stimulus to unfreeze our illiquid assets”.
See how that works? It’s no big deal in lizard language. Sure, take some stimulus. Why not? You just need a little oil to grease up your assets.
But in human language you would say no way. The taxpayers are not going to buy your bad debt. That’s a perfect example of moral hazard being normalized. You need to fix your business model.
Notice the first thing the lizard says, (no offense, Henry) is that the Fed has to take extraordinary action to protect the economy. As if counterfeiting• is our heroic saviour, and only hope. Wrong!
The lizard was asked to explain simply, "Why are the markets going up on such bad economic news?" But he obfuscated, as lizards do, and was corrected with the term, "printing money".
The lizard then praises the decision as the only choice. Professionally paid corporate lizards never mention the public interest choice. I’ll do that right here: Tax Billionaires!
The choice is to either print the money or tax massive profits properly. I say tax big money big time. It would be about time. It’s long overdue.
The Lizard says, “Another benefit of the Fed buying corporate junk bonds is that it gives investors confidence the market will rebound.”
Really? Ya think? Their previously profitable investments, now gone bad, get bailed out so investors can be confident enough to keep reinvesting in them until they go bad again and need another bailout, which is inevitable because that's how it works.
This is the tax extraction scam that keeps the public broke. The business model is a political choice that needs to be corrected. It must be corrected, by law, to remedy the national demise.
A representative government would regulate its entire financial industry for economic balance, ethical compliance, and the common good.
Market gains are supposed to be based on economic growth. They are not supposed to be determined by people’s need for them. That’s not a market at all. That's a scam.
The lizard goes on to say “Markets could be wrong”.
As if we can’t be sure how much money it will take to stabilize investor confidence in 'The Market'. Is this stimulus for the current scam or the last scam? We don't know! We might need to dump endless amounts of stimulus into the markets to keep investors confident, that their money will continue to be prosperous for them, in the tax extraction scam.
The markets are themselves now a business model nearly independent of economic performance. They are selling the dream of getting rich by investing in taxpayer bailouts. And it’s working.
Private investors profit from public debt. They don’t suffer from inflation because of their own economic growth. Investors are insulated from inflation and public debt. The uninvested taxpayer is not.
Inflation and public debt increase inequality.
The lizard correctly admits people won’t have enough money to support themselves, or the economy, without assistance. He assumes printing money is our best defense, which sanctions the entire extraction scam. So he’s not only wrong, the lizard is lying. He knows better.
The inflation problem is not that there’s too much money chasing too few goods, as the lizard said, ironically contradicting his own previous comment that people won't have enough money. The problem is that those making the money aren’t chasing the goods. They are investing it back into the scam for more profits. That's the problem.
The money is extracted from the economy and deposited into the scam, whose profits are then reinvested into the scam for more profits, instead of being spent into the economy, on people.
The reason the Fed has to perpetually print emergency money is because the government condones market profiteering retroactively insured by the taxpayers.
The public doesn't have any money, only credit, because of the scam. That's why investors prefer printing money. They don't want to tax themselves and their ill-gotten gains. Gains they got from the scam.
• Note: The use of the word counterfeit is intentionally inflammatory, yet arguably accurate.