Deborah J Napier High school hoop action begins Fayetteville SAY Girls Wing Soccer Team finishes season among state’s Final Four Devils visit Georgetown for OHSAA Foundation Games Grandfather charged in boy’s death Reward for Stykes info doubles Veterans honored at Western Brown Wenstrup to run for re-election Shop With A Cop Donation Kenneth M McKinley Vilvens signs with Mount St. Joseph SBAAC awards girls tennis all-stars Layman inducted into Miami University Athletic Hall of Fame SBAAC hands out awards to First Team girls’ soccer all-stars John D Marks Fourteen indicted by Brown County Grand Jury Commissioners donate to task force Voters return Worley to the bench Georgetown Police Department welcomes new officers Ruby A Ratliff Donna J Moore Stella M Glasscock Ellen L Gelter Alverda T Guillermin Justin N Beach EHS dedicates ‘Kiser Court’ SBAAC awards First Team football all-stars, winning teams Sizer earns SBAAC American Division Volleyball Player of Year honors for 3rd straight year Broncos to host Blue Jays for OHSAA ‘Jimmy Young’ Foundation Game, Nov. 17 Vern W Kidd Jr Brown County Election Results – 2017 Michael D Hines Raymond W Napier Leslie E Boyle Gary L Barber Meth makes a comeback The bomber crash of 1944 4-H holds ‘shootout’ with BCSO County jobless rate falls Russell K Wolfer SHAC recognizes volleyball all-stars SHAC cross country all-stars take home awards Eastern girls finish runner-up in SHAC golf standings Week 10 football roundup Kathleen J Bright Sister Marjean Clement Veterans Service Office Moves G’town FFA has great fair Bald Eagles spotted 2017 Celebration of Lights being planned Eight indicted by grand jury Carlos L Beck Georgetown XC teams qualify for regional championship meet Warriors advance to Div. II Regional Meet Lady Rockets reach end to successful volleyball season Week nine football roundup Lady Warriors regional bound Amy J Caudill Bertha Lindsey Bobby S Conley Body found in ditch, investigation underway Former Aberdeen Fiscal Officer pleads guilty Keeping kids safe on the school bus Mary E Hahn Gary R Cornette Week 8 football roundup Notable soccer season reaches end for G-Men Lady Broncos are SBAAC American Division XC champs SHAC XC title goes to Lady Warriors Arthur Smith Eugene M Jennings Jr Billy R Kilgore Sr Carol D Roberts Thelma L Gray Sheriff Ellis meets President Trump Quarter Auction to pay for fire engine restoration Upcoming Quarter Raffle, Oct. 14 to benefit PRC Man found dead in ditch Rev Alvin B Woodruff Jackson L Russell Lady Broncos bring home 11th SBAAC American Division title in 12 years Lady Rockets wrap up regular season Warriors rally for win Broncos make it two in a row Helen L Whalen Veterans saluted at the Brown County Fair Fayetteville cancels school after threat Tommy J Stamper Sue Day Broncos move closer to SBAAC American Division title Lady G-Men working hard, showing improvement Sports complex soon to open in Mt. Orab Week 6 football roundup H Ray Warnock Jennings faces multiple sex offenses Georgetown nears water system completion Bible Baptist Barbeque brings big crowd Linda Taylor Rene Sizemore-Dahlheimer Eugene Snider

What markets are telling us

Last week US stock markets tumbled yet again, leaving the Dow Jones index down almost 1500 points for the year. In fact, most major world markets are in negative territory this year. There are many Wall Street cheerleaders who are trying to say that this is just a technical correction, that the bottom is near, and that everything will be getting better soon. They are ignoring the real message the markets are trying to send: you cannot print your way to prosperity.

People throughout history have always sought to acquire wealth. Most of them understand that it takes hard work, sacrifice, savings, and investment. But many are always looking for that “get rich quick” scheme. Monetary cranks throughout history have thought that just printing more money would result in greater wealth and prosperity. Every time this was tried it resulted in failure. Huge economic booms would be followed by even larger busts. But no matter how many times the cranks were debunked both in theory and practice, the same failed ideas kept coming back.

The intellectual descendants of those monetary cranks are now leading the world’s central banks, which is why the last decade has seen an explosion of money creation. And what do the central bankers have to show for it? Lackluster employment numbers that have not kept up with population growth, increasing economic inequality, a rising cost of living, and constant fear and uncertainty about what the future holds.

The past decade has been a lot like the 1920s, when prices wanted to drop but the Federal Reserve kept the price level steady through injections of easy money into the economy. The result in the 1920s was the Great Depression. But in the 1920s prices were dropping because of increased production. More goods being produced meant lower prices, which the Fed then tried to prop up by printing money. Unlike the “Roaring 20s” however, the economy isn’t quite as strong today. It’s more of a gasp than a roar.

Production today is barely above 2007 levels, while heavily-indebted households already hurt during the financial crisis don’t want to keep spending. The bad debts and mal-investments from the last Federal Reserve-induced boom were never liquidated, they were merely papered over with more easy money. The underlying economic fundamentals remain weak but the monetary cranks who run the Fed keep trying to pump more and more money into the system. They fail to realize that easy money is the cause, not the cure, of recessions and depressions. They didn’t realize that prices needed to drop in order to clear all the bad debt and mal-investments out of the system. Because they don’t realize that, we are on the verge of yet another financial crisis.

Don’t be confused by any stock market rallies over the next few months and think that the worst is over. Remember that after Black Tuesday in 1929 the Dow Jones rallied over the next year before it began slowly and steadily to sink again. The central bankers will do everything they can to delay the inevitable. If they had allowed housing prices to fall in 2008 and hadn’t bailed out the big Wall Street banks, the economy would have corrected itself. Yes, it would have been a severe correction, but it would have been nothing compared to the inevitable correction that will present itself when the Fed runs out of easy money options. The Fed may try to cut interest rates again, maybe even going negative, or it will do more quantitative easing, but that won’t work. Creating more money does not lead to economic growth and well-being. The more money the Federal Reserve creates, the more ordinary Americans will end up suffering.

http://newsdemocrat.com/wp-content/uploads/2016/02/web1_Ron_Paul_official_Congressional_photo_portrait_2007_0-2.jpg

Leave a Reply

Your email address will not be published. Required fields are marked *

2016 News Democrat