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Alan Greenspan: Money Printing Didn’t Work

FORMER FED CHAIR SAYS “STIMULUS” WASN’T SO STIMULATING AFTER ALL … By FITSNEWS || Former Federal Reserve chairman Alan Greenspan – himself a supporter of liberal monetary policy – is blasting the massive money-printing “stimulus” that took place under his successor Ben Bernanke (and which is continuing to some extent under current…

FORMER FED CHAIR SAYS “STIMULUS” WASN’T SO STIMULATING AFTER ALL …

By FITSNEWS || Former Federal Reserve chairman Alan Greenspan – himself a supporter of liberal monetary policy – is blasting the massive money-printing “stimulus” that took place under his successor Ben Bernanke (and which is continuing to some extent under current Federal Reserve chairwoman Janet Yellen).

In an interview with The Wall Street Journal, Greenspan – who ran the Fed from 1987-2006 – said the secretive central bank’s “quantitative easing” plan did not accomplish its objectives.  He also said the removal of the artificial “stimulus” from the economy would be painful.

Great …

For those of you keeping score at home, the first round of quantitative easing, known as “QE1,” took place from November 25, 2008 through March 31, 2010.  Over that period, the Federal Reserve added $1.7 trillion to its balance sheet ($300 billion in Treasuries, $1.2 trillion in mortgage backed securities and $175 billion in agency bonds).  The second round, dubbed “QE2,” took place from November 3, 2010 through July 1, 2011.  Over that period, the Fed added $600 billion in Treasuries to its balance sheet.

Another so-called stimulus plan offsetting longer term securities with the sale of short-term debt (a.k.a. “Operation Twist”) began in September 2011 – and was extended in June of 2012.

And of course in September 2012, the Fed began its latest and greatest round of money printing – an open-ended commitment to create $85 billion in new assets each month.  In January 2014, the Fed began to “taper” this commitment – reducing its money-printing by $10 billion a month.

Soon, the money presses will be shut down completely … but to what end?

Everybody knows what this grand experiment was … the greatest redistribution of wealth from the poor and middle class to the rich ever .

If you don’t believe us, ask one of the architects of the plan.  He’ll tell you.

And now Greenspan, the “Maestro” himself, is weighing in on the broader economic failure of this redistribution …

“Effective demand is dead in the water,” Greenspan told the WSJ, adding the money-printing “did not work.”

He added that he “didn’t think it was possible” to unwind the money-printing without adverse consequences to an economy that’s become hooked on the drug.

“We’ve never had any experience with anything like this, so I’m not going to sit here and tell you exactly how it’s going to come out,” he said, adding that the pressure to raise interest rates would likely come from the market, not the central bank.

Greenspan’s advice?

He encouraged investors to buy gold … arguing it was not subject to the whims of government monetary policy.

Awesome … now he tells us, right?

Of course if at first you don’t succeed … print, print again.

RAPID REACTION

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14 comments

Knows 'Em When He Sees 'Em October 29, 2014 at 8:08 pm

If you want to use the term whore, then look no further. Greenspan wrote the effing book on whoring.

It’s always about Greenspan and he’s never wrong. Everyone else is simply inadequate. Just ask him.

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Banks:TBTF You:Fuck off & die October 29, 2014 at 9:12 pm

“Oopsy Daisy”

Fuckers.

The Soviet Union & China have been snatching up gold for some time now. They got a big ole head start on the sheeple here. Just wait till the reserves start coming out and the double digit price increases hit. The only reason gas has been dropping is because of the shale strikes. Meanwhile, food continues its price increases.

If Switzerland’s referendum passes that’s gonna send gold up on top of all the other pressures.

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Deo Vindice SC October 29, 2014 at 9:22 pm

Dem missles ain’t free ?

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nitrat October 30, 2014 at 7:01 am

Personal friend and acolyte of Ayn Rand, Alan Greenspan showed just how stupid a Libertarian can be when he testified before Congress after the 2008 crash that he and his policies helped bring about and said that it never occurred to him that the banks could not police themselves and would do anything risky with other people’s money.

“In Congressional testimony on October 23, 2008, Greenspan acknowledged that he was “partially” wrong in opposing regulation and stated “Those of us who have looked to the self-interest of lending institutions to protect shareholder’s equity – myself especially – are in a state of shocked disbelief.”[56] Referring to his free-market ideology, Greenspan said: “I have found a flaw. I don’t know how significant or permanent it is. But I have been very distressed by that fact.” Representative Henry Waxman (D-CA) then pressed him to clarify his words. “In other words, you found that your view of the world, your ideology, was not right, it was not working,” Waxman said. “Absolutely, precisely,” Greenspan replied. “You know, that’s precisely the reason I was shocked, because I have been going for 40 years or more with very considerable evidence that it was working exceptionally well.”[84] Greenspan admitted fault[85] in opposing regulation of derivatives and acknowledged that financial institutions didn’t protect shareholders and investments as well as he expected. “- Wikipedia

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nitrat October 30, 2014 at 7:01 am

Personal friend and acolyte of Ayn Rand, Alan Greenspan showed just how stupid a Libertarian can be when he testified before Congress after the 2008 crash that he and his policies helped bring about and said that it never occurred to him that the banks could not police themselves and would do anything risky with other people’s money.

“In Congressional testimony on October 23, 2008, Greenspan acknowledged that he was “partially” wrong in opposing regulation and stated “Those of us who have looked to the self-interest of lending institutions to protect shareholder’s equity – myself especially – are in a state of shocked disbelief.”[56] Referring to his free-market ideology, Greenspan said: “I have found a flaw. I don’t know how significant or permanent it is. But I have been very distressed by that fact.” Representative Henry Waxman (D-CA) then pressed him to clarify his words. “In other words, you found that your view of the world, your ideology, was not right, it was not working,” Waxman said. “Absolutely, precisely,” Greenspan replied. “You know, that’s precisely the reason I was shocked, because I have been going for 40 years or more with very considerable evidence that it was working exceptionally well.”[84] Greenspan admitted fault[85] in opposing regulation of derivatives and acknowledged that financial institutions didn’t protect shareholders and investments as well as he expected. “- Wikipedia

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Smirks October 30, 2014 at 8:47 am

Fuck off Greenspan, you’re the last clown that should be giving anyone advice.

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Clown Car October 31, 2014 at 7:19 am

Do you feel the same way about Ben Bernanke and Janet Yellen?

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TyroneMamaCollards October 30, 2014 at 9:50 am

The big concern now is deflation. We were told in a Goldman Sachs note two days ago that oil was going to plunge and stay low through 2015. The outlook is bearish. I paid 2.54 today to fill up here in the Upstate. Low oil prices are stimulative in the sense that people have more money to spend on other things, but when commodity prices go down and stay down, it has a devastating effect on a nation’s economy. Drillers give up, employees are let go, and checks are not there on Friday to be spent. People stop buying stuff. Look at Japan.
You do not want deflation. It’s a bad thing. On the other hand, I am proud of America’s growing energy independence. OPEC can go screw itself.

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Confused messages October 31, 2014 at 7:17 am

“You do not want deflation. It’s a bad thing.”

You don’t like lower gas prices?

“People stop buying stuff. Look at Japan.”

Japan has had 30 years of QE and now enjoys an all time high misery index, so are you saying this is what coming our way?(as if it could get worse?)

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Crooner October 30, 2014 at 10:51 am

By every economic measure QE worked, unless you believe the markets and GDP would have done the same without intervention. Everything is up including wages, though they are not as strong as they should be. And inflation is below the 2% Fed target rate. So what’s the problem?

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tomstickler October 30, 2014 at 11:15 am

The problem is that inflation is below the 2% Fed target rate — which is itself too low to boost the economy, let alone prevent a return to the zero lower bound.

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:( October 30, 2014 at 1:26 pm

“pushing on a string”

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bbbbbernznke October 31, 2014 at 8:08 am

you true believers (people who dont understand how bad this system is TOTALLY RIGGED) keep falling for the EXACT SAME SCAMS over and over. but because you have invested so much of your false and flawed personalities into these intentionally created corrupt systems, all they have to do is change the face of the stooge who runs the scam and you idiots fall asleep, let them run the same scams, and then after they have milked you for a decade or so, their “leader(s)” are then safe to come out, admit their scheme, “admit” they were wrong (but in fact were just following orders), and thus absolve themselves and their tricknology of public accountability once the moronic masses read their claim of: OOOOPS.” you traitors worship money, worship the official seals and the flag, and these people use your willing ignorance against you the same way time and time and time again. LOL but then again you clowns are the ones who worship republicanism and youre so deluded you even worship fatass fits

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Lennon Durden October 31, 2014 at 11:37 am

Apparently when Greenspan speaks … Well America used to listen.
Apparently this ancient geezer (methuselahs dad) is not quite the adept money manager of Americas finances as he was touted to be
When (not if, when)

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