The idea behind quantitative easing is to push asset prices, mainly stocks, higher with the notion that the economy will follow and there will be joy throughout the globe. It is kind of like the build it and they will come line out of the movie Field of Dreams. Unlike, the movie, in the real world, people don’t realize what a fantasy quantitative easing is.

As I have said many times, economists get paid to lie on behalf of their employers. The alternative is to tell the truth and their is no profit in that. I don’t make a dime for making my case and it is flawless. No sympathy is needed. I am retired and completely solvent.

When government buys stocks by proxy or directly, the rich do get richer and happier. Most of the rich who benefit had no part in influencing policy. The super rich and politically powerful are responsible for getting quantitative easing implemented. They don’t mind if others benefit. All that matters is that government guarantee their investment returns.

As I have explained, many times work is a second choice, even if it is treated as a first choice by all other economists. The rich may be the country’s greatest asset, but only if they innovate, invest in plant and equipment, and do the work society needs rich people to do. The rich and the poor do have at least one thing in common. That is for each group, work is a second choice. Quantitative easing gives the rich the chance of a life time. Countless gains of wealth and power are made just by virtue of government guaranteeing investment returns.

‘What is the problem with that?’, is often asked. “Are you not just jealous?’ Since work is a second choice, the rich get lazy just like the poor do when they get something for nothing. When rich people do not do the work that society needs them to do, there is little innovation, less investment in plant and equipment and no economic progress. There is no point in working if all one has to do is wait for government to push up the value of assets. Hype replaces productivity and the economy eventually stagnates, kills any recovery and a depression ensues.

The mere suggestion by Mario Draghi that the European Union buy equities should be terrifying to everyone. Unfortunately it is not. This is a guarantee that all of the European Union will be impoverished. The United States Federal Reserve buys stocks by proxy. This is just as bad.

Euphemism Mountain is a Curbside Jimmy Favorite. It is about life as Americans insist it is.