by California Lawyer, TF Metals Report:
Economics is based on human behavior. “One of the central tenets of economics is that people want certain things and will change their behavior to get those things – in other words, people will respond to incentives.”
Applying this to the FED’s policies, and ramifications, should then yield logical connections between the results of the FED’s policies, and their intentions in implementing them, then, right?
Stated differently, the FED intends the consequences of their actions, correct?
If the consequences are unintended, then, it means that the FED’s actions were lacking intellectual rigor, meaning they stupidly did not consider the outcome before acting. Or, nefariously, instead, the FED’s claim that the consequences were not intended is but a lie, as the reality is that the FED intended that which occurred all along.
So, with this backdrop, let’s look at some consequences of the FED easy money, in a way that exposes the FED as a corrupt organization hell bent on saving the too big to fail banks at all costs.
The FED’s easy money policies have given those with first access to the money enormous sums of paper fiat, which has in turn driven up asset prices, boosted the stock market, allowed big corporations to buy back their own shares, artificially boosting price and giving those corporate big wigs outsized bonus payments and stock option windfalls. This reality of artificially boosting stock prices has not worked to stimulate the economy, but instead has only created a larger gap between the haves and the have nots.
The easy money FED has also done generational damage, priced in terms far to large to quantify. The FED has, through years of reckless, low rates and centralized planning, created a perverse incentive structure for young people in general, and young women in particular.
The FED has so thoroughly and so completely skewed the normal business cycle and the destruction phase of capitalism, that there is no longer any business incentive to create real jobs. Coupled with the inept federal government and its elected officials that are either too corrupt or too timid to enact real economic reforms, but instead doling out even more easy money in the form of student loans, home loans, etc., this has worked in combination to drive up the costs of college, and saddle college kids with enormous student loan debt, that cannot ever get repaid absent some miracle of a high paying job.
So, in a self-fulling cycle of desperation, young women fresh out of college cannot get a real job, or can only get one with low pay.
In a very rational application of economic theory, the incentive structure as discussed above, the recent graduate has a choice: take a low paying job if it is even available, or find another way to pay bills other than getting a traditional job.
So here we are. The new economy. Thank you Greenspan, Bernanke, Yellen, and especially the Keynesian apologists like the bearded-dunce Krugman, who is the modern-day Joseph Goebbels, spouting his Keynesian gibberish that gets a ready audience from his sycophant elected officials caring only for the next election cycle and how much free shit they can give away.
It is with this backdrop, that I am not surprised at all to read an article that speaks openly of the “new prostitution economy.” This was on Drudge recently, in a major publication. It is not Taibbi writing an excellent expose or saying scary things in a way designed to frighten people. No, it is right there for the consumption even in the highest circles of the moneyed class in their ivory towers.
So, why did the FED unleash this new economy, and turn a generation of young women into prostitutes?
Was it intended?
Was it not intended?
If not intended, then how could those ivy-league educated Ph.d’s NOT have seen the natural outcome of years and years of easy money?
I say they DID realize the outcome of their easy money policies would lead to generational paradigm shifts, like turning 20-something women into whores, and despite this foreknowledge, they embarked on their free-money plan because to them, anything else would have been worse!
See, they care only about their own kind: The TBTF banks. Some middle-aged couple’s daughter is not something they care about. Some old man getting a shot of leg, from a comely 20-something hottie, well, that is right in their wheel-house, and why should not captains of industry and the elite moneyed-men realize a little pleasure after decades of doing God’s work?
The reality is that with the Fed printing to infinity, the economy has so severely hampered real job creation, and artificially skewed prices, that such has had profound, societally-corrosive effects.
(1) Wealth is enormous to the elites, such that there are tons of older men paying for sex with 20-something women. And, the same is true for older gay men paying for sex with young men.
(2) College graduates are NOT seeking to earn their way to the promised land with hard work, sacrifice, no. Instead, they are seeking instant rewards, with no stigma or judgment, or real consequences, just like the Fed with its QE to infinity. They want the benefits, with no effort.
But, us normal folks, laboring at the base of the ivory towers, pitchforks in hand, know better. There is no free lunch.
The only way out of this is a return to sound money. Savers are to be rewarded. It is from savings that a society reaps rewards, not beggaring thy neighbor in a race to the bottom, run by centralized planners who wreck all that they touch to keep their place of special privilege.
Read the Vanity Fair article, and try not to become enraged at the banksters. It is a cultural watershed eye-opener of a topic. It flows with the narrative that we live in changing times.
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