Excerpt from link: Thanks to the Fed’s absurd monetary policy and widespread crony capitalism, the 1 percent has roared back from the recession. David Stockman on how the collapse of auto company Delphi epitomizes the rotten central bank policies that transfer vast windfalls to the richest Americans. An adaptation from his new book, The Great Deformation. ------- The ease with which the vultures made their billions from this crony capitalist raid on the U.S. Treasury is evident in Mitt Romney’s purported $15 million of Delphi winnings. Based on the timing of this saga, it appears they were obtained while Romney was on the chicken-dinner circuit honing his anti–big government rhetoric for the upcoming presidential campaign. Call it the Detroit Job. It goes without saying that with friends like these the free market does not need any enemies. More important, under the financial repression and Wall Street–coddling policies of the Fed there is no free market left. Instead, it has been supplanted by a continuous and destructive cycle of boom and bust emanating from the monetary depredations of the state’s central banking branch. In the process of inflating stocks, leverage, and speculation to absurd heights, the Fed finally loses control, transforming the financial markets into economic killing fields. Yet in its subsequent panicked reflation maneuvers, it then fosters a vulture capitalist harvest of such magnitude as to be unthinkable on the free market. This is the absurd end game of Greenspan’s “wealth effects” monetary policy and his specious claim that bubbles can’t be detected but only left to burst. This is how recovery for the 1 percent happens.
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