A dire warning and total global collapse.
King World News note: William McChesney Martin was the longest serving Chairman of the Federal Reserve, serving under five presidents, from 1951 – 1970. His warning sounds an alarm in the midst of the insane policies being pursued by central bankers around the world.
This was from Art Cashin’s piece yesterday: A Bit More From McChesney Martin – In his famous “punchbowl” speech (10/19/55), the then Fed chief talked about the theoretical tradeoff to boost inflation a bit to help unemployment. Here’s what he said:
There are some who contend that a little inflation–a creeping inflation–is necessary and desirable in promoting our goal of maximum employment. My able associate, Allan Sproul, President of the Federal Reserve Bank of New York, put his finger on the fallacy in this contention in testifying before a Congressional committee earlier this year when he said:
“Those who would seek to promote ‘full employment’ by creeping inflation, induced by credit policy, are trying to correct structural maladjustments, which are inevitable in a highly dynamic economy, by debasing the savings of the people. If their advocacy of this course is motivated by concern for the ‘little fellow, they should explain to the holders of savings bonds, savings deposits, building and loan shares, life insurance policies and pension rights, just how and why a rise in prices of, say, 3 per cent a year is a small price to pay for achieving ‘full employment. They should also explain to all of us – – little, big, and just plain ordinary Americans–what becomes of our whole system of long term contracts, on which so much of our economic activity depends, if it is to be accepted in advance that repayment of long term debt will surely be in badly depreciated coin.”
If inflation would in fact make jobs, no reasonable man would be against it. But as I have frequently emphasized, inflation seems to be putting money into our pockets when in fact it is robbing the saver, the pensioner, the retired workman, the aged–those least able to defend themselves. And when the inevitable aftermath of deflation sets in, businessman, banker, worker, all suffer. That doesn’t mean jobs. It means just the opposite.
Gee, Mac, we miss ya!
King World News note: That is why global collapse is the inevitable outcome of the destructive policies being pursued by central bankers around the world.
***KWN has now released the Dr. Paul Craig Roberts KWN audio interview where he discusses the gold and silver market in greater detail. Dr. Roberts also discusses the greatest threat facing the world, systemic collapse, major markets, and much more, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO RELEASED: ALERT: Paul Craig Roberts Warns Of Massive Social Instability And Nuclear War CLICK HERE.
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