Now that the QE2 plan has been announced, it may be time to have a quick update regarding how SwapRent could make QE2 redundant and be used as a prudent new innovative public policy management tool to help reduce the severity of the problems that an extremely debt oriented culture has misdirected our capitalism society into.
My hat’s off to the UK and a few other European governments regarding their recent austerity measures to reduce debts. After these European governments have reigned in the monetary expansion and restored fiscal disciplines perhaps it could be the perfect time for them to explore using the newly created third alternative economic policy management tool of SwapRent to pick up the role of stimulus and to better manage their countries’ economic recovery and steady growth.
This new third dimension of economic policy management possibility through directly controlling the domestic property value without using credit or debts may assist many Asian countries to slow down the fast pace of their economic growth and offer those central banks a free hand to raise interests rates in order to curb a potential inflation.
NGOs may also have a new way to assist governments buried in debts to stand up on their feet by demanding a non-debt based domestic economic stimulus program for those countries.
It is quite alarming to see how the Fed is on a self-destruction path to gamble away our country’s economic future as the rest of the world quietly watches these perceived experts leading our country into the economic abyss. The silence may be due to the fact that the rest of the intellectual communities may simply be too star stricken by these super star traders.
It appears simply very apparent to many of us that much of the need of a QE2 could be similar to that of a desperate rogue trader’s unstoppable desire to cover up unrecognized and unannounced losses already incurred on his book. It certainly makes you wonder about their inner circle’s desire to keep the secrecy of their activities at the Fed. It is so strange that it exists this way in a democratic modern world.
Any effort of theirs trying to use fixing unemployment rate as the excuse to disguise their real motive of hiding financial losses on their securities holdings from their previous QE as well as the Treasury Department’s broken coffer is really analogous to treating intellectuals like you and me as 5-year old kids.
As mentioned in an earlier blog post below, there is no other quicker way to have a wholesale destruction of our national wealth than the dollar devaluation triggered by their repeated big punts using money they don’t have now. Why do these incompetent people of the current Administration want us to believe that getting poorer as a nation and as an individual is better for us?
Intellectuals and academics will need to help dispel the misconception that a lower dollar is good for us Americans. What the Administration needs to focus on is to help our nation develop real economic competitiveness through enhanced productivity and innovations, not keeping blaming their inability to alter the exchange rate artificially to create fake and temporary competitiveness in an attempt to divert attention to their inability to tackle the real issues.
At this stage it does not look like I’ll be able to gather enough political influence on the holed-up decision makers of the current Administration about the SwapRent project which was predicted to be more a political issue rather than one about economic merits by the industry groups but I am very sure about what their children or grandchildren will learn from the economic historians.
It is just disheartening to see that no matter how hard each of us American work individually, all the wealth that we have created and will create is getting destroyed in a wholesale destruction due to the dropping dollar value caused by the unforgivable gross incompetency of these people at helm of the current administration.