Finally, a Politician & a Central Bank Who Criticize Paper Money Printing

Two central banks are at the forefront when it comes to implementing paper money printing: the U.S.’s Federal Reserve and the Bank of Japan. And it isn’t a secret how poorly these two nations are faring despite their quantitative easing efforts.

In these pages, I have been very critical of quantitative easing.

With that said, to date, I have only heard one senior financial politician and one central bank head criticize the use of quantitative easing.

Canada’s Finance Minister, Jim Flaherty, at a private dinner with his G20 equals this week, criticized the use of quantitative easing by the U.S. central bank. The following day, he said, “It’s not good public policy.” He said the U.S. should have never implemented quantitative easing, but “Now that they’ve done it, they should get out of it as quickly as they can.” (Source: “‘Not good public policy’: Flaherty appears at odds with BoC, G20 as he criticizes U.S. quantitative easing,” Financial Post, October 16, 2013.)

The governor of the central bank of Canada, Stephen Poloz, has a similar take. He said, “[we] certainly agree that quantitative easing is one of the last things we want to be in a position to have to use.” (Source: Ibid.)

Finally, a finance minister and a central bank governor who have come out against quantitative easing! But no one is listening!

The Federal Reserve continues to print money through quantitative easing as it tells people it hopes to bring the unemployment rate down and stimulate the economy. But it’s not working! Banks are getting bigger, richer, and stronger because of quantitative easing, and the stock market is rising because of the easy money. As for jobs, they are being created in low wage-paying industries.

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