"The Keynesians have overlooked a much more dangerous and demonstrable pitfall of their own creation: something that I call "The Stimulus Trap." This condition occurs when an economy becomes addicted to the monetary stimulus provided by a central bank, and as a result fails to restructure itself in a manner that will allow for robust, and sustainable, growth. The trap redirects capital into non-productive sectors and starves those areas of the economy that could lead an economic rebirth. The condition is characterized by anemic growth (masked by the delivery of perpetual stimulus) and deteriorating underlying economic fundamentals." - an excerpt from The Global Investor Newsletter, March 2013
Related: SPDR SP 500 Index ETF (SPY), SPDR Dow Jones Industrials ETF (DIA)
Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.
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- Monetary Stimulus
- Reckless Monetary Policy Is Causing Our Resources ...
- There’s Certainly A Bubble In Certain Types Of Sto...
- The FDIC Lacks The Resources To Cover Major Losses...
- The Fed Knows That Major Banks Would Fail If The B...
- Taking Actual Losses On Deposits Is No Different T...
- Cypriots Will Bear The Burden Of Past Profligacy
- The Stimulus Trap
- Video: US Banks Are A Few Interest Rate Hikes From...
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- Video: Checking Market Pulse
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- Video: Interview With Rand Paul
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- Job Market: Disturbing Trends
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- Cartoon: Dumb & Dumber 3 - Fooled Again
- Serial Money Printers
- We Don`t Have A Secretary of The Treasury, We Have...
- The Federal Reserve Is Expected To Buy Nearly 90% ...
- Federal Reserve: There Is No Exit Strategy
- Video: Obama Won`t Finish His Second Term Without ...
- The Federal Reserve Has No Credible Exit Strategy
- The Reason It Does Not Feel Like A Recovery For Mo...
- The Fed Is Propping Up A Parasitic Economy That Is...
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- Video: Fed`s Exit Strategy
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