Ed Morrissey @ Hot Air:
It comes as no great surprise that Rick Santelli isn’t a big fan of the latest round of quantitative easing. The CNBC analyst tells Pimco chief Mohammed el-Arian that the QE3 will hammer retirement plans and the most responsible savers, and won’t solve the problem that the Fed wants to address — joblessness. Santelli has a lengthy rant about government policies that push greater central control and its interlocking effect on the Fed’s inflationary policies, but mostly he tells el-Arian that it’s not going to work:
Earlier, el-Arian admitted that the QE3 now looks like a Fed vehicle to explicitly introduce inflation as a last-ditch effort to generate some growth even as it degrades assets. Calling it a “reverse Volcker,” the Pimco chief offered some support for the program, but noted that the Fed was now in experimental territory, and that future generations would have to clean up the mess:
The Federal Reserve and Chairman Ben Bernanke not only are willing to tolerate inflation but actually are trying to create it, with a “mess” left behind for their successors to clean up, Pimco’s Mohamed El-Erian told CNBC.
The reason, the Pimco CEO said, is that the risks outweigh the rewards as the central bank tries to stimulate an economy that still is foundering three years after the financial crisis recession ostensibly ended. …
But critics charge that the balance sheet expansion, which will go well past $3 trillion, is causing inflation. Former Fed governor Kevin Warsh told CNBC last week that the Fed will have a difficult time finding an exit from the years of QE programs, a point on which El-Erian agreed.
“This is true for all central banks — the (European Central Bank), the Fed, the Bank of Japan, the Bank of England. We are so deep into unfamiliar territory, so deep into experimental mode, that we don’t know what the consequences will be,” he said. “Whoever comes afterward will have to clean up the mess.”
Western economies = Death spiral.
Get some popcorn, enjoy the show.
Part of the Obama Cloward/Piven strategy to destroy the USA from within.
Note, as soon as it was announced our nation’s credit worthiness was downgraded YET AGAIN!
And, people who think having more money around will be good for them better take some snapshots of the prices of everyday items before VS after, and week-by-week as more of that $40 billion enters our system daily.
What was once a $.59 loaf of white “bread” is already over $1 on sale!
Decent bread was about $2.39 a loaf when Obama took office.
Now that same loaf is $4.59 on sale!
But the stock market is up.
Maybe that’s all Obama wants.
To be able to point at a phony ”indicator” and say, “See! The economy is turning around!”
It is phony, however.
Loads of folks are buying dividend-sharing stocks for THIS year’s end payout, only with plans to sell the stuff once Obama’s high tax on dividends arrives next year.
(Oh! Obama wasn’t going to tell you that! And so, his media is trying to keep it quiet, too.)
Don’t forget, Rick Santelli was the driving force for the entire TEA Party movement!