by Chris Waltzek
Chris opens up the phone lines for another Listener’s Q&A Segment. Longtime listener George, is concerned by the monetary policymaker decisions at the BOJ / EU, in particular negative lending rates and quantitative easing. The host notes that policymakers seem to be relying on gimmicks to keep the global economic house of cards from imploding – debt monetization and negative interest rates are desperate measures of last resort. Case in point, negative rates force investors to make malinvestments in paper assets in pursuit of risky capital gains. While simultaneously punishing retirees who and savers who rely on passive income for basic necessities. The concept is based on the economic fallacy that eventually the economic structure will right itself. But what few economists admit is that the entire foundation is irreparably damaged, such operations cannot rebuild the industrial base that is lost, and rebuild the middle class that was the backbone of society.