Four charged in overdose death Underage felonies strain county system Fayetteville looks forward to 2018 celebration Russellville council discusses underground tanks in village Marilyn A Wren Larry E Carter Virginia L McQuitty Practices get underway for fall sports Jays soon to begin quest for SHAC title Western Brown to hold Meet the Teams Night and OHSAA parent meeting Aug. 8 Norville F Hardyman Carol J Tracy James Witt Hundreds of Narcan doses used in 2016 Heavy weekend rain causes flooding and damaged roads Child Focus hosts Chamber of Commerce meeting Mary F McElroy Broncos out to defend SBAAC American Division soccer title Bronco 5K to take place Aug. 5 EHS volleyball team ready for new season Michael C Cooper Raymond Mays Harry E Smittle Jr Mary A Flaugher Western Brown’s Leto excels in Australia Rockets ready for 1st season in SBAAC Paddling, hiking activities available at Ohio State Parks SB Warriors get set to hit gridiron for 2nd year of varsity football Scotty W Johnson Glenna V Moertle Ricky L Hoffer Ruth E Ward David A Watson Janet L Dotson Vilvie S King Steven C Utter Cropper joins Fallis at Bethel-Tate Local kids find success in world of martial arts 13th annual Bronco 5K Run and Fitness Walk set for Aug. 5 Teams compete in memory of Randy Fulton Mike W Smith Roger Helton David A Borders Timothy E Argenbright Joseph W Sherrill Frances K Pedigo Cecil N Graham Sawyers charged in sex for heroin plot Group demands changes at ELSD Blanche Malblanc Pauline L Kirk Over 70 take part in 11th Joe Myers 5K Classic Lions Club 4th of July Festival brings outdoor fun to Ripley ODNR reminds visitors to swim safe this summer Changes in high school track and field/cross country rules include school issued and approved uniforms Betty L Philpott Judy B Williams Billie J Russell Remembering Ravye 25 attend volleyball camp in Fayetteville Western Brown hosts Pee Wee Football Camp Eugene L Baumann Kids enjoy a ‘Touch-a-Truck’ event in Mt. Orab New police chief takes over in Fayetteville BC Chamber moving forward on 2017 SummerFest Two killed in wrong way crash in Mt. Orab Jack Hamilton Charles L Glover Maxine M Stires Western Brown youth basketball camps a success Leto to represent Team USA in Australia Broncos hard at work in preparation for fall season Eastern approves bowling team Phyllis Ruth Lois A Manley Eddie L Carr Thomas L Carnahan Cameron Barkley Walter J McGee Gary J Graham George D Johnson Walter F Crawford Jr Charles E Meranda Jr Corbin testifies before Ohio Senate Five arrested in Hamersville drug bust Neil Diamond tribute band coming Hyde finds home at Midway Youngsters work to improve on hoop skills at Eastern basketball camps Sizer named All-District Honorable Mention Western Brown’s Barnes earns All-State, All-District honors Local players compete in SWOFCA Ron Woyan East/West All-Star Game 6th annual Ravye Williams Memorial 3-on-3 Basketball Tournament set for June 24 Clarence E Teal Rosie B Poe Monard C Boots James P Conrad James T Dinser Scott J Swearingen Eastern’s Farris earns award for top 2-point field percentage in Ohio Georgetown’s Seigla earns All-District honors

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