US bankers like local Third World warlords intercepting monetary stimulus aid
Stacy Summary: Good mornin’ y’all. Yes thanks for all the great links in the latest jibber jabber. Here is what I am reading this morning. The second link from Jesse is very interesting. Read it and let me know your thoughts in comments please!
- The case for deflation, stagflation & implosion (must read)
The monetary stimulus of the Fed and the Treasury to help the economy is similar to relief aid sent to a suffering Third World country. It is intercepted and seized by a despotic regime and allocated to its local warlords, with very little going to help the people.
By far this presents the most compelling case for a deflationary episode. As the money that is created flows into financial assets, it is ‘taxed’ by Wall Street which takes a disproportionately large share in the form of fees and bonuses, and what are likely to be extra-legal trading profits.
October 11, 2009