Feeding Lies to the Leech
Two main methods have been used to try to solve the global financial crisis. The first is austerity, as the public are forced to cut back in order for their money to be given to the banks. The second is ‘quantitative easing’, or printing money.
The principle behind quantitative easing is relatively simple – if a country does not have enough money to pay its debts and invest in new business ventures, then it just prints some more. The problem is that this breaks the connection between money and actual economic activity. Printing money does not make a country richer, it just devalues all of the money previously in the system and creates some more which you can then do something different with. It effectively allows the government to subvert the natural economy to transfer wealth around the system. This money is, in a way, false money, because it doesn’t represent actual wealth but is simply conjured out of thin air in order to manipulate the system.
Most of this money has ended up within either the banking industry or the stock market. The US stock market is currently enjoying record highs, despite the fact that the real economy has yet to recover from the effects of the financial crisis. In short – the disconnect between money and economic activity has become a disconnect between the economy and the stock market, with the false money of quantitative easing devaluing the money within the real economy and subversively transferring wealth into the stock market and banking sector through the use of this fake money. That is of course separate from the massive amounts of real money which have been given to the banks, for them to invest in the stock market.