Sublime

If great contractions are caused by excessive debt and these contractions lead to deflation, then the Fed can only temporarily offset the inevitable deflation. Quantitative easing (QE) will only work by inducing another borrowing and lending cycle. This will mean that the economy will add more leverage to an already overleveraged economy. Thus, the

It is extremely important to note Bernholz’s conclusion. Hyperinflations are not caused by aggressive central banks. They are caused by irresponsible and profligate legislatures that spend far beyond their means and by accommodative central banks that lend a helping hand to governments.

Maynard Keynes, and Mr H. G. Wells,

L’extension ad vitam des soubassements de la nouvelle normale des banques centrales fait frémir parce qu’elle signe le retour des taux d’intérêt politiquement contrôlés et d’un monde dans lequel la dette cesse de constituer un levier de chantage à disposition des créanciers.

The track record of the 46‐year experiment with unsound money bears out this conclusion. Savings rates have been declining across the developed countries, dropping to very low levels, while personal, municipal, and national debts have increased to levels which would have seemed unimaginable in the past.

Former Fed chairman Ben Bernanke may be correct that these measures averted an economic collapse worse than the Great Depression. But they worked largely by further exacerbating income and wealth inequality, something that did not happen in the years following 1929. And they rendered the economy dependent on ever-higher doses of stimulus—leaving it

De fait, les actions des banques centrales augmentent la concentration des richesses et approfondissent l’inégalité de leur répartition.