Date Added: Nov 2010
The Federal Reserve's quantitative easing is presented as injecting $600 billion into "The economy." But instead of getting banks lending to Americans again - households and firms - the money is going abroad, through arbitrage interest-rate speculation, currency speculation, and capital flight. No wonder foreign economies are protesting, as their currencies are being pushed up. The American economy may be viewed as a tragic drama. Its tragic flaw was planted and flowered in the 1980s: a combination of deregulation leading to financial fraud so deep as to turn the banking system into a predatory gang, while shifting the tax burden off real estate and the higher tax brackets onto wage earners and sales taxes.