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3 Dec, 2019 13:26

‘Once you pop, you can’t stop’: Fed QE is like Pringles, Ross Ashcroft tells RT’s Keiser Report

‘Once you pop, you can’t stop’: Fed QE is like Pringles, Ross Ashcroft tells RT’s Keiser Report

The Federal Reserve Bank of New York has been bailing out the repo market with multi-billion dollar programs every week, says the Keiser Report, which asks if it’s the fourth round of quantitative easing (QE).

Max Keiser talks to award winning filmmaker, broadcaster, and strategist Ross Ashcroft, who says it’s not QE but more like QE infinity. “It’s like Pringles, once you pop, you can’t stop,” says Ashcroft.

According to Ashcroft, who is the host of the weekly program Renegade, it is the classic liquidity trap. He says the money is stagnating while really bad ideas are being funded.

“This is classic, the misallocation of capital, not only in the QE’s but right back to the crisis” when instead of letting banks go bust we have propped them up.“From that moment till now we were continually misallocating capital week in, week out. And the repo market is just the canary in the mine, and of course they can’t call it QE4 because the markets would trauma.”

He says the systemic fraud is simply staggering. The asset stripping, political favors, and so on, that’s what is now considered to be ‘business as usual’ and “obviously it’s not going to end well.”

For more stories on economy & finance visit RT's business section