Fiscal and Monetary policies, we are told, are supposed to stimulate and protect the US Economy. Nothing could be further from the truth.
Taxing & spending reduce the profits available to replace and grow our country’s productive capacity. Printing (or the “electronic equivalent”) makes this worse by making the tax bite more
destructive. Tack on tons of regulation, which remove many of the initial opportunities for profit, and the result is that US productive capacity has been falling – not rising – for several years.
However, all the FED’s buying of Treasuries and other securities have masked this destruction, pushing the stock markets up – nonstop – for the last three years. But now, it looks like the Wall St party may be coming to an end, as economics professor Joe Salerno describes in