by George Leef
Investor and economist Peter Schiff, famed for having called the bursting of the housing bubble when almost every other “expert” said that the housing market was strong and would remain so, writes here about Chairman Bernanke’s latest dose of medicine for our ailing economy. Here’s Schiff’s analysis in a nutshell: “The goal of the plan is to create consumer purchasing power by raising home and stock prices. No one seems to be considering the likelihood that unending QE will fail to life bond, stock or home prices, but will instead bleed straight through to higher prices for food, energy, and other consumer staples. If that occurs, consumers will have less purchasing power, not more.”
Bernanke, like so many other “mainstream” economists, thinks that he can manipulate the economy through governmental policies, somehow improving our use of resources to produce more goods and services through the economic equivalent of narcotics. All he can do is to retard the adjustments that must be made to cleanse the economy of the heavy doses of narcotics he has already administered.