{"id":6241,"date":"2015-03-06T06:48:43","date_gmt":"2015-03-06T11:48:43","guid":{"rendered":"http:\/\/olduvai.ca\/?p=6241"},"modified":"2015-03-06T06:48:43","modified_gmt":"2015-03-06T11:48:43","slug":"qe-inventor-its-easy-to-create-a-full-blown-recovery-but-central-banks-chose-to-make-banksters-rich-instead-of-helping-main-street","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=6241","title":{"rendered":"QE Inventor: It\u2019s EASY to Create a Full-Blown Recovery, But Central Banks Chose to Make Banksters Rich Instead of Helping Main Street"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/www.washingtonsblog.com\/2015\/03\/qe-inventor-easy-create-full-blown-recovery-central-banks-chose-make-banksters-rich-instead-helping-main-street.html\" target=\"_blank\">QE Inventor: It\u2019s EASY to Create a Full-Blown Recovery, But Central Banks Chose to Make Banksters Rich Instead of Helping Main Street<\/a><\/h3>\n<h3>QE Is a Sham<\/h3>\n<p>Richard Werner (economics professor at\u00a0<span id=\"yui_3_10_0_1_1425585590200_450\">University of Southampton<\/span>) is the\u00a0<a title=\"original inventor of QE&amp;nbsp;\" href=\"http:\/\/www.bbc.com\/news\/business-24614016\" target=\"_blank\">inventor of quantitative easing<\/a>\u00a0(QE).<\/p>\n<p>Werner previously\u00a0<a title=\"original inventor of QE&amp;nbsp;\" href=\"http:\/\/www.bbc.com\/news\/business-24614016\" target=\"_blank\">said<\/a>\u00a0that QE has failed to help the economy. (Former long-time Fed chair Alan Greenspan\u00a0<a title=\"long-term head of the Federal Reserve\" href=\"http:\/\/www.zerohedge.com\/news\/2014-10-29\/alan-greenspan-qe-failed-help-economy-unwind-will-be-painful-buy-gold\" target=\"_blank\">agrees<\/a>.\u00a0\u00a0<a title=\"Numerous academic studies\" href=\"http:\/\/www.washingtonsblog.com\/2013\/10\/3-academic-studies-show-that-quantitative-easing-doesnt-help-the-economy.html\">Numerous academic studies<\/a>\u00a0confirm this. And\u00a0<a title=\"see this\" href=\"http:\/\/www.washingtonsblog.com\/2014\/05\/obvious-reason-qe-doesnt-work.html\">see this<\/a>.)<\/p>\n<p>But Werner is now taking off the gloves \u2026<\/p>\n<p>He\u00a0<a title=\"said\" href=\"https:\/\/www.youtube.com\/watch?v=6pU3tw5let4\" target=\"_blank\">said<\/a>\u00a0recently:<\/p>\n<ul>\n<li>It\u2019s easy for central banks to take steps which would quickly create \u201cfull-blown recovery\u201d for the economy<\/li>\n<\/ul>\n<ul>\n<li>But the central bankers are\u00a0<em>instead<\/em>\u00a0choosing to act in a way which creates massive profits for the big banks, instead of stabilizing the economy. Werner blames the revolving door between central bankers and private bankers<\/li>\n<\/ul>\n<ul>\n<li>The central banks have twisted the whole concept of easing \u2026 pretending that they\u2019re trying to help the economy, when they\u2019re doing something else entirely<\/li>\n<\/ul>\n<ul>\n<li>Credit should be extended to the productive economy \u2013 businesses which create goods and services \u2013 and not to financial speculators or high levels of consumer debt.\u00a0 Extending credit to small businesses former creates prosperity; lending to financial speculators only leads to economic instability and soaring inequality; and when too high a percentage of lending goes to luxury consumer consumption, it\u2019s bad for the economy<\/li>\n<\/ul>\n<ul>\n<li>Banks create money and credit out of thin air when they make loans (<a title=\"background\" href=\"http:\/\/www.washingtonsblog.com\/2014\/03\/bank-england-admits-loans-come-first-deposits-follow.html\">background<\/a>)<\/li>\n<\/ul>\n<ul>\n<li>It\u2019s a myth that interest rates drive the level of economic activity. The data shows that rates\u00a0<em>lag<\/em>\u00a0the economy<\/li>\n<\/ul>\n<p>Indeed, economists also note that QE\u00a0<a title=\"helps the rich \u2026 but not the average American\" href=\"http:\/\/www.washingtonsblog.com\/2012\/12\/quantitative-easing-benefits-the-super-elite-and-hurts-the-little-guy-and-the-american-economy.html\">helps the rich \u2026 but\u00a0<em>hurts<\/em>\u00a0the little guy<\/a>. QE is one of the main causes of\u00a0<a title=\"quantitative easing increases inequality\" href=\"http:\/\/www.washingtonsblog.com\/2013\/02\/economic-leaders-pay-lip-service-to-decreasing-inequality-while-pushing-policies-which-increase-it.html\" data-cke-saved-href=\"http:\/\/www.washingtonsblog.com\/2013\/02\/economic-leaders-pay-lip-service-to-decreasing-inequality-while-pushing-policies-which-increase-it.html\" data-mce-=\"\">inequality<\/a>\u00a0(and see\u00a0<a title=\"this\" href=\"http:\/\/www.zerohedge.com\/news\/2013-09-25\/stephen-roach-inequality-and-feds-treacherous-endgame\" target=\"_blank\">this<\/a>\u00a0and\u00a0<a title=\"this\" href=\"http:\/\/sevenpillarsinstitute.org\/news\/economics\/does-quantitative-easing-contribute-to-income-inequality\" target=\"_blank\">this<\/a>). And economists\u00a0<a title=\"now admit\" href=\"http:\/\/www.washingtonsblog.com\/2014\/02\/short-years-mainstream-economics-gone-assuming-runaway-inequality-harmless-understanding-cripples-economy.html\">now admit<\/a>\u00a0that runaway inequality cripples the economy. So QE indirectly hurts the economy by fueling runaway inequality.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>QE Inventor: It\u2019s EASY to Create a Full-Blown Recovery, But Central Banks Chose to Make Banksters Rich Instead of Helping Main Street QE Is a Sham Richard Werner (economics professor at\u00a0University of Southampton) is the\u00a0inventor of quantitative easing\u00a0(QE). Werner previously\u00a0said\u00a0that QE has failed to help the economy. (Former long-time Fed chair Alan Greenspan\u00a0agrees.\u00a0\u00a0Numerous academic studies\u00a0confirm [&hellip;]<\/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":[952,63,122,303,305,950,661,662,3953,3952],"class_list":["post-6241","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alan-greenspan","tag-banks","tag-central-bank","tag-fed","tag-federal-reserve","tag-fraud","tag-qe","tag-quantitative-easing","tag-richard-werner","tag-sham"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6241","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=6241"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6241\/revisions"}],"predecessor-version":[{"id":6242,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6241\/revisions\/6242"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}