{"id":21437,"date":"2016-07-17T13:38:14","date_gmt":"2016-07-17T18:38:14","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21437"},"modified":"2016-07-17T13:38:14","modified_gmt":"2016-07-17T18:38:14","slug":"helicopter-money-wont-fix-whats-broken","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21437","title":{"rendered":"“Helicopter Money” Won’t Fix What’s Broken"},"content":{"rendered":"

“Helicopter Money” Won’t Fix What’s Broken<\/a><\/h3>\n

Creating “free money” to support bloated bureaucracies and corrupt cartels only makes the underlying problems worse.<\/i><\/p>\n

The mere mention of\u00a0helicopter money<\/i>\u00a0has intoxicated global stock markets, which have soared on the rumor of Japanese\u00a0helicopter money<\/i>.<\/b>\u00a0But as I explained in\u00a0Why Helicopter Money Won’t Push Stocks Higher<\/a>, central banks funding fiscal spending (i.e.\u00a0helicopter money<\/i>) will only have a weak and entirely indirect effect on profits or stock market valuations.<\/p>\n

The problem with\u00a0helicopter money<\/i>\u00a0is that it cannot fix what’s broken in the economy–and even worse, it perpetuates every inefficient, corrupt, bloated and unsustainable system in the status quo.<\/b>\u00a0As I explain in my book\u00a0Why Our Status Quo Failed and Is Beyond Reform<\/a>, the problem isn’t lack of fiscal spending or stimulus; the problem is\u00a0the primary systems of the status quo have failed and cannot be fixed with central bank easy money.<\/i><\/p>\n

In effect,\u00a0helicopter money<\/i>\u00a0feeds the perverse incentives that have crippled our economy and society.<\/b>\u00a0Rather than be forced to choose priorities and rid centralized systems of wasteful corruption, bloat and graft that siphon off wealth and destroy productivity,\u00a0helicopter money<\/i>\u00a0enables the continuation of all the inefficient, corrupt, bloated and unsustainable systems that make up the status quo.<\/p>\n

No sacrifices are required by\u00a0helicopter money<\/i>:<\/b>\u00a0unlimited sums of freshly created money will be used to fund the same broken systems that have generated extremes of debt and wealth\/income inequality.<\/p>\n

The list of what won’t be fixed by\u00a0helicopter money<\/i>\u00a0is long:<\/b><\/p>\n

— The demographic time-bomb in pension plans, Medicare etc.: not fixed, just papered over.<\/p>\n

— The higher education cartel’s out-of-control spending spree: not fixed, just papered over.<\/p>\n

— The healthcare\/sickcare cartel’s out-of-control spending spree: not fixed, just papered over.<\/p>\n

— America’s declining health and runaway epidemics of “legal” drug addiction and metabolic syndrome diseases (diabesity): ignored, untouched.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

“Helicopter Money” Won’t Fix What’s Broken Creating “free money” to support bloated bureaucracies and corrupt cartels only makes the underlying problems worse. The mere mention of\u00a0helicopter money\u00a0has intoxicated global stock markets, which have soared on the rumor of Japanese\u00a0helicopter money.\u00a0But as I explained in\u00a0Why Helicopter Money Won’t Push Stocks Higher, central banks funding fiscal spending […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[127,1769,6039,5981,452,536,4924,1302,1138],"class_list":["post-21437","post","type-post","status-publish","format-standard","hentry","category-economics","tag-charles-hugh-smith","tag-corruption","tag-free-money","tag-helicopter-money","tag-japan","tag-money","tag-oftwominds","tag-status-quo","tag-stock-market"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21437"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21437\/revisions"}],"predecessor-version":[{"id":21438,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21437\/revisions\/21438"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}