Sunday, February 28, 2016

A Dire Warning And Total Global Collapse

"A dire warning and total global collapse.
King World News note:  William McChesney Martin was the longest serving Chairman of the Federal Reserve, serving under five presidents, from 1951 – 1970.  His warning sounds an alarm in the midst of the insane policies being pursued by central bankers around the world.
This was from Art Cashin’s piece yesterday:  A Bit More From McChesney Martin – In his famous “punchbowl” speech (10/19/55), the then Fed chief talked about the theoretical tradeoff to boost inflation a bit to help unemployment. Here’s what he said:
There are some who contend that a little inflation–a creeping inflation–is necessary and desirable in promoting our goal of maximum employment. My able associate, Allan Sproul, President of the Federal Reserve Bank of New York, put his finger on the fallacy in this contention in testifying before a Congressional committee earlier this year when he said:
“Those who would seek to promote ‘full employment’ by creeping inflation, induced by credit policy, are trying to correct structural maladjustments, which are inevitable in a highly dynamic economy, by debasing the savings of the people. If their advocacy of this course is motivated by concern for the ‘little fellow, they should explain to the holders of savings bonds, savings deposits, building and loan shares, life insurance policies and pension rights, just how and why a rise in prices of, say, 3 per cent a year is a small price to pay for achieving ‘full employment. They should also explain to all of us – – little, big, and just plain ordinary Americans–what becomes of our whole system of long term contracts, on which so much of our economic activity depends, if it is to be accepted in advance that repayment of long term debt will surely be in badly depreciated coin.”

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