by Gary Christenson, Deviant Investor:
“Meth” or Methamphetamine is a common recreational drug used, according to Wikipedia, to induce feelings of euphoria, increase sexual desire, and stimulate weight loss, among others.
QE or Quantitative Easing, injecting liquidity, bond monetization, and “printing money” are common Keynesian economic prescriptions used to inflate economies, enable deficit spending and boost financial profits, among others. Some call it monetary madness.
There are many disturbing similarities and it is clear that excessive use of both Meth and QE are destructive.
Your brain on drugs, your economy on QE:
In low doses Meth can elevate mood and increase alertness and energy. The FDA has approved a variation of Meth for attention deficit disorder and obesity in adults and children. But Meth is heavily used for “recreational” purposes and is both addictive and highly profitable for the producers, whether legal or illegal.
“Printing money” in modest quantities appears to stimulate economic activity and creates the illusion of enhanced wealth. In the late 1990s people were obsessed with stock prices, CNBC, the “money honey,” the latest dot-com IPO, and spending money like the cash supply would never cease. Subjectively speaking, it felt like a drug induced “high” that we hoped would last forever.
In higher doses, Meth can produce psychosis, cerebral hemorrhage, mood swings, delusions and violence. Meth addicts will do increasingly bizarre and violent things to obtain their addictive drug.
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