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DR. MARK W. HENDRICKSON: THE WINNERS AND LOSERS FROM QE3 |
As the debt balloons toward $20 trillion or more in the next few years, it is probable that Bernanke or his successor will feel compelled to do everything possible to try to suppress interest rates so that the deadly government game of hyper-debt doesn’t collapse. This raises the specter that the United States is doomed to many long, gray Japan-like years of economic twilight, with growth in the private sector being choked off through a rationing of credit so that the government and its Big Business cronies can hog low-interest credit while would-be new businesses that are the engine of job creation are left to fend for themselves.
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