It’s magic … Until the strings break.
What Ben Bernanke did by not Tapering was expose the fragility of the US economy for all to see. His actions, Mises Institute’s Peter Klein explains in this brief clip, based on the premise that the US economy was not capable of sustaining any reduction in the $85 billion per month stimulus free-money, means once again “the economy is so dependent on artificial stimulation from the central bank… that the economy is in another artificial boom just like the artificial boom we have been trying to get out of.” Critically, for all those proclaiming the US as a “cleanest shirt,”
Bernanke proved them wrong (and exposed the fallacy of data such as the unemployment rate and jobless claims as having any value – as we have explained). In conclusion, Klein notes “any signs of economic growth or progress that we have experienced since 2008 are solely the result of government stimulus; in other words, more malinvestment.”
This will not end well.