Saturday, February 5, 2011
Hedge Fund Manager Bill Fleckenstein: Fed Money Printing to Cover Bank Theft Is Leading to Food Inflation Worldwide
Dylan Ratigan says that the Fed is printing money to cover enormous theft by the big banks, and that money printing is leading to food inflation worldwide. (Bad weather and speculation on commodities are obviously also contributing to rising food prices).
Bill Fleckenstein largely agrees, telling Ratigan:
- Money printing correlates quite well to rise in commodity prices, but not precisely
- When you "print money out of thin air", you don't know where it will go
- Printing money turns the average person into a speculator (think Chinese farmers buying copper)
- 80% of money in countries like Egypt goes to buying food (and that's for the lucky ones who have jobs)
- 40% of political donations in the U.S. comes from giant banks ... so the banks own Washington
- The Fed won't ever face it's mistakes, and always just wants to print more money
2 comments:
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"When you "print money out of thin air", you don't know where it will go"
ReplyDeleteNonsense. The government has complete control over how it is spent. The government can print as much as needed as long as it doesn't cause inflation. The missing piece in this picture is how it's spent. The way it is spent now is causing inflation. Michale Hudson had a great interview a while back on why we had a 90% tax on the rich that spanned the best economic years for the middle class.
Since the now-proven-to-be-failed trickle down theory was implemented, the balance in economic equality has been thrown off. Concentrated wealth destroys democracies. The wealthy are speculating in commodities now, driving the price up because the stock market has shown itself to be a con game due to lax regulations. There are many ways we can get back on our feet from removing completely the tax on the middle class and poor who have seen their incomes stagnate (actually reduced because of inflation) to a employer of last resort program among others. The simplest way to achieve balance is ending the fractional reserve system as proposed in HR 6550, the National Emergency Employment Defense Act but the government has been corrupted to the core and it appears our last hope for justice is with the law. Maybe when the coming crash in commercial real estate takes full force, we'll see the masses get fed up enough to do something about it.
Of course, the uncontrolled population growth of the world might have something to do with food inflation as well ...
ReplyDeleteUnlike absurdly naive economic models which rely on 'unbounded growth', the real world has physical limits beyond which any model will fail utterly.
Engineering knows this, why doesn't economics?