The fallacy in Mr. Ballard’s argument is the premise that quantitative easing is actually contributing to the reduction of unemployment and contributing to the recovery of our national economy. The slight improvement of our sluggish economy clearly has been the result of time itself. The only obvious result of this policy has been the creation of a very overprice stock market that is not sustainable. The overpriced stock market has actually been counter-productive to both reducing high unemployment and improving our overall economy. Public held corporation continue to reduce their work forces and put off making investments in product development and production facilities simply to show temporary increases in profits to justify their overpriced share price. While increases in stock prices may appear great news for retirement funds,401ks,etc, these increases as the result of quantitative easing are simply not sustainable as evidenced by the drastic drop in the stock market by the mere mention of tapering the program down. The only people benefiting from this policy are the large brokerage operations of the mega-banks and speculators. While the consumer price index with all its built-in distortions may not reflect high inflation yet, any working class American can easily illustrate that the purchasing power of their hard earned dollars is deteriorating at a rate of much more than two and half percent now. Unfortunately, this will get drastically worse if these policies are not reversed in the very near future. When corporations can make no further cuts in their work force or hold off making necessary investments, they will be forced to make drastic price increases in their products and services to produce profits that are commiserate with their overpriced stock
Posted on: Sun, 23 Jun 2013 20:29:58 +0000