Sunday, 19 December 2010

QE: Miracle Cure or Con Job?

Just finished re-reading Mackay's classic on the Madness of Crowds. So this topic is of timely interest to me. The academic - and to a lesser extent political and media - debate for and against quantitative easing rages: but while I am not able to devote as much time and intellectual firepower (?) to this subject as the deep thinkers who offer their wisdom on the subject as I have to pursue a day-job as well , I would just like to observe that until this recent attack of collective madness anyone suggesting the use of helicopter money as a means to combat economic problems would have been considered to be NUTS! If this social experiment is successful it surely opens the door to end the 'economic problem' for good. Alternatively it will go into the history books as the greatest Ponzi scheme and con trick ever, on a par with the South Sea Bubble, with Ben Shalom Bernanke in the role of John Law.

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