Monetary Policy is Dead

Hey Barry and Benny:

Times are tough out here in the real world - the world away from the DC Beltway.

Out here we understand a few things that don't seem to register on the Beltway brain.

Y'all talk some about jobs, but you don't do nothing.

The effin tea Party has shut down the country. They is just a bunch of spoiled kids with no sense of responsibility to the rest of us. But, that's where you folks seem to be these days: afraid to upset someone throwing a tantrum. It'd be a joke if it weren't bout ready to kill us all.

On top of that, the tools that y'all in DC expect to fix the economy and get us some jobs are jes plain broke - they is all kaput.

Y'all relyin on them tools to fix things. But, Barry, they cain't fix anything because they are broken.

Take the biggie: FED monetary policy. The way that it is supposed to work is that the FED creates some extra money in bank reserves and then the banks will lend out the extra reserves to businesses to make investments.

That don't work no more - plain and simple, it don't work now and it won't work tomorrow, period.

Listen up Benny, your QE has been a big problem, so stop already. You are just making things worse.

Here's why it don't work: Banks can buy stocks and speculate in oil futures with the free money that you give 'em.

That's a lot more fun and a lot more profitable than making loans, so why do you think they will make loans to businesses? They won't. Period.

Money is already cheaper than free. Keeping it free will NOT solve any problems.

The only way to fix it is to prohibit commercial banks from buying things and require that they make loans instead.

Now, we all know that - it ain't a mystery. So why don't we fix it?

We don't fix it and restore Glass-Stegall because the system is crooked. It is corrupt. Them big bankers jes buys off some politicians, and Presto! The law stays the same.

So, listen up Benny, you gotta get on some folks and get the law changed. I know that is outside your office, but it's what you gotta do. Quit your job and start a campaign. We're talking the future here and it's time to think outside the box.

Be a patriot - take one for the team.

It don't seem there's any other way.....

Your pal,