10-04-2016, 10:14 AM
How long can QE work?
Free money to lenders from central banks have made personal thrift irrelevant as a source of capital. Debt has become more profitable to lenders than thrift. QE saved the banks, but it has also promoted subprime lending. It has also encouraged employers to underpay workers so that workers can be deeply in debt and thus more under employers' thumbs.
All that is missing is the Company Store.
Free money to lenders from central banks have made personal thrift irrelevant as a source of capital. Debt has become more profitable to lenders than thrift. QE saved the banks, but it has also promoted subprime lending. It has also encouraged employers to underpay workers so that workers can be deeply in debt and thus more under employers' thumbs.
All that is missing is the Company Store.
The ideal subject of totalitarian rule is not the convinced Nazi or the dedicated Communist but instead the people for whom the distinction between fact and fiction, true and false, no longer exists -- Hannah Arendt.