Central Banks: The Killing Fields

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Central Banks: The Killing Fields
cegoh / Pixabay

Central Banks: The Killing Fields by Frederick J. Sheehan, AU Contrarian

Frederick J. Sheehan is the author of Panderer to Power: The Untold Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession (McGraw-Hill, 2009), which was translated and republished in Chinese (2014). He is researching a book about Ben Bernanke. He writes a blog at www.AuContrarian.com.

The house organ for the Council of Foreign Relations, Foreign Affairs, has published its final solution under the title: “Print Less and Transfer More: Why Central Banks Should Give Money directly to the People.”  Written under the names Mark Blyth and Eric Lonergan, but trumpeting the establishment voice of, say, Martin Wolf, they state:It’s well past time, then, for U.S. policymakers – as well as their counterparts in other developed countries –  to consider a version of Friedman’s helicopter drops…. Many in the private sector don’t want to take out any more loans; they believe their debt levels are already too high. That’s especially bad news for central bankers: when households and businesses refuse to rapidly increase their borrowing, monetary policy can’t do much to increase their spending…. Governments must do better. Rather than trying to spur private-sector spending through asset purchases or interest-rate changes, central banks, such as the Fed, should hand consumers cash directly…. The transfers wouldn’t cause