Did the Feds rig the system?
Bill Bonner and the analysts over at The Daily Reckoning are feeling fairly vindicated this week. They have been investigating how the federal government may have rigged the system over the past 30 years, directing funds to help the rich get richer.
Bill Bonner and the analysts over at The Daily Reckoning are feeling fairly vindicated this week. They have been investigating how the federal government may have rigged the system over the past 30 years, directing funds to help the rich get richer.
The Daily Reckoning鈥roved right again!
We鈥檝e been sticking our necks out. We had a strong hunch that the rich had gotten a whole lot richer not because they were suddenly greedier or suddenly smarter, but because of the feds. The feds were handing out money. The rich were first in line.
But we didn鈥檛 have any real proof鈥ntil now.
Relatively speaking, the rich have gotten a lot richer over the last 30 years. The whiners and fixers want to do something about it. They say the rich weren鈥檛 taxed heavily enough鈥nd they weren鈥檛 regulated enough.
That had little to do with it, we pointed out. Instead, the meddlers themselves caused the rich to get richer.
Who鈥檚 right? We are, of course鈥�
How do you like that? Without the intervention of the central bankers, the rich would be about $7.5 trillion less rich. But wait鈥ctually, they鈥檇 be even less rich than that. We鈥檒l come back to that, tomorrow鈥�
Let鈥檚 look at how the rich got so rich. Did they get a lot smarter in the last 30 years? Did they become a lot greedier? Nah鈥hey were in the right place at the right time. They owned stocks just when the Fed was dumping beaucoup money into the financial system.
We didn鈥檛 have much proof for these assertions when we first made them. They just seemed, superficially, correct. The Fed increased the money supply (M2) 13 times since the early 鈥�80s鈥nd the Dow rose about 13 times too. It seemed a little fishy to us.
Wages and prices, meanwhile, were held in check by outsourcing. The US outsourced its consumer and labor inflation to China. So relatively, the rich got richer鈥eaving the tired, poor multitudes to get even poorer.
And now we have proof. Without the intervention of the central bank, stocks would be at half today鈥檚 prices.
One scam after another. It is amazing anyone takes economists or central bankers seriously. And now the same bumblers who caused the rich to get so rich are still on the job鈥ffering more scammy solutions. Here鈥檚 The Atlantic Magazine:
Get it? Businessmen and investors aren鈥檛 angels. So government regulators鈥acked by economists鈥nd opinion leaders鈥ave to step in.
And here鈥檚 Jeffrey Sachs calling for major new central planning鈥�
Never explained is how people on the public payroll got to be such angels鈥nd so smart! If you cut them, do they not bleed? If you insult them, aren鈥檛 their feelings hurt? If you wave a $100 bill in front of them, won鈥檛 they do your bidding?
Bob Diamond hoped so. Moyers and Winship report:
More tomorrow鈥n the whole corrupt and degenerate spectacle. How the feds rigged the system鈥nd how they use the crisis they caused to rig it even more.
Regards,
Bill Bonner
听蹿辞谤 The Daily Reckoning