Michael D Karos Jr John H Kirk Janet R Meyer Patsy A Clark Dorothy J Schroeder Broncos trample the G-Men, 73-40 Rockets down the Devils, 59-55 Seven new inductees to enter WBHS Sports Hall of Fame Lady Warriors ascend to 13-1 Broncos finish 2nd of 22 teams in Hammer and Anvil Invitational Hedwig Lambert Billie G Walkup Some county offices may be moved G’town Council approves 2017 budget Family doubles in size with adoption Sardinia Mayor looks forward to 2017 2017 Fayetteville Firemen’s Festival set Floyd Newberry Jr Donna F Lang Gene Warren Dwight L Fulton Virginia A O’Neil Anne L Durbin-Thomas Marietta Dunn Charles L Latchford Broncos win ‘Battle of 32’ Lady Broncos claim win over Bethel-Tate Jays top Warriors, fall to Mustangs Lady Warriors claim top spot in SHAC with win over Lynchburg-Clay Broncos buck the Lions, 54-51 James N DeHaas Questions still linger in Stuart explosion New direction for Brittany Stykes case New public safety director now on duty in Brown Co. Fayetteville Mayor anticipates a good year for the village Chamber of Commerce announces awardees Robert Bechdolt Carl E Lindsey Audrey F Maher LeJeune Howser Tammy L Connor Henry C Mayhall Jr Chad Spilker Frank W Kemmeter Jr Wanda J Howard Dorothy Huff Colon C Malott Eastern varsity teams come out on top to capture Brown County Holiday Classic crowns WBHS Army JROTC hosts rifle shooting competition Bronco varsity wrestling team unbeaten at 8-0 Blue Jays finish 1-1 in Ripley Pepsi Classic Mona G Van Vooren Hiram Beardsworth Avery W McCleese Ethel E Long Children learn safety from ‘Officer Phil’ Microchips can help locate lost pets Local GOP plans trip to Washington Three sentenced in common pleas Estel Earhart Roy Stewart Tenacious ‘D’ leads Lady Jays to victory over Blanchester on day one of Ripley Pepsi Classic Fayetteville’s Thompson, Jester earn SWOFCA All-City honors Jays fall to Blanchester on first day of Pepsi Classic Ticket details announced for OHSAA basketball and wrestling state tournaments Jerri K McKenzie Randy D Vaughn Georgetown JR/SR high to have new library Georgetown saw many improvements in 2016 Three sentenced in common pleas court Esther O Brown G-Men go on scoring rampage for 77-41 win over Cardinals Warriors climb to 4-2 with wins over West Union, Lynchburg Rockets top Whiteoak for first win Shirley M Bray Carter Lumber closes in G’town Wenstrup looks forward to 2017 Seven indicted by county grand jury John Ruthven holds pre-Christmas Open House New pet boarding facility now open in Georgetown Denver W Emmons Carl W Liebig Mary L McKinley Blake C Roush Louis A Koewler William D Cornetet Western Brown dedicates Perry Ogden Court Lady Warrior win streak hits 5 Lady Rockets wrap up tough week on the hardwood Barons rally for win over Broncos Georgetown to hire two paid Firefighter/EMT’s Noble receives statewide law enforcement award County helps family in need after house fire Flashing signs banned in G’town historic district ‘Christmas Extravaganza’ at Gaslight Thelma L Ernst Roy L Bruce Ken Leimberger Cathye J Bunthoff Lending a holiday helping hand

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.

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2016 News Democrat