Shane, this is really important breaking news. Gov. Huckabee is moving the dial here in a striking new development: he’s one of the first candidates to connect the Fed’s monetary policy to the economic suffering the average middle-class voter has experienced over the last seven years of Obamanomics—and really Bushanomics too, which led to the economic crisis of 2008.
Huckabee hit the nail on the head when he said, “The bottom 90 percent in the past 40 years have had stagnant wages. In the 25 years before that, 90 percent saw an increase.”
Now he has connected the middle class’s declining standard of living to the Fed’s monetary policies that not only feed rising prices in key middle class budget items but, even more importantly, starve the real economy of money without which we cannot have economic growth and rising middle-class incomes. Instead, the Wall Street-Washington complex’s zero interest rate policies are leading investment banks to borrow money from Washington at almost no interest and then lend it back to the government at a higher price for a tax-payer guaranteed profit. This isn’t banking, it isn’t investment, it isn’t capitalism, and it isn’t working for the middle class.
Kudos to Huckabee for being the first to notice.
Frank Cannon is the president of American Principles in Action.
2 comments
Casey, the way it is set up now, what is happening is a special relationship between Wall Street Banks and Washington: The Fed lends money to the banks at slightly above zero percent, and then the banks lend it back to Washington at 2 percent or so for a a taxpayer guaranteed profit that subsidizes government spending. But credit in the real economy is tight, in part because interest rates are being held artificially low. So that’s why quantitative easing is starving the real economy of money.
What exactly do you mean by “starve the economy of money”? You can’t claim that the Fed is starving the economy of money, and then in your very next sentence, complain about the basically free money they are printing and giving to big banks. Maybe they’re starving the economy, or maybe they’re overfeeding it. We can go back and forth about which one it is, but it’s definitely not both.
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