Yellen Hands Off Printing Press to Japan

Submitted by Michael Pento – Pento Portfolio Strategies

There is a saying: “The rich just keep getting richer”.  And by all accounts, since the 2008 financial crisis, they have. Unfortunately, for the struggling poor and middle class, wealthy asset holders have been the only beneficiary of six years of Federal Reserve easy-money policies. Under the tutelage of Ben Bernanke, the Fed introduced QE in March of 2009 with the hope it would save the economy from economic collapse.  The goal was to create a new vibrant market for borrowing to replace the former vibrant market for borrowing that had just blown up, taking the economy with it.  I am sure Ben Bernanke began this ruse with good intentions and the misplaced belief that real economic prosperity could be manufactured from creating new money.  

But as they say, hind sight is 20-20, and here we sit six years and 3.5 trillion dollars later with the realization this money printing scheme did not work as planned.  Don’t just take my word for it. According to Wall Street Journal, Former Fed Chairman Alan Greenspan said the QE program had failed to achieve its primary goals. As a means of boosting consumer demand, the asset purchase program, he said, “has not worked,” though it did a good job of increasing asset prices. Continue reading