REP. ALAN GRAYSON PRAISES THE CREATION OF ‘STEALTH SOCIALISM’ IN AMERICA
Congressman Alan Grayson (D-Fla.) — who once said in an elaborate presentation that the Republican healthcare plan is for the sick to “die quickly” — praised the creation of “stealth socialism” in America in a recent interview with David Dayen at Salon.
Speaking about the Federal Reserve’s rapidly-growing balance sheet, Grayson remarked:
The “desired result” of said “stealth socialism,” the congressman said, is “housing ticking up again” and “setting a foundation for recovery for the U.S. economy.”
The Harvard-educated economist also spoke about the broader policies of the Federal Reserve and quantitative easing.
“Conceivably, we might be in a situation where the Fed has to buy $70 billion in assets in perpetuity,” he said. “It’s puzzling why there’s been no market reaction to that. But it has had its apparent intended purpose. It leaves you scratching your head a bit about how it worked and why it worked. You would think more than tripling the balance sheet would have some effect on the value of money, but so far no. There’s been no effect on inflation; in fact, it appears to have prevented deflation, an economic spiral and rounds of bankruptcy.”
Congressman Alan Grayson (D-Fla.) — who once said in an elaborate presentation that the Republican healthcare plan is for the sick to “die quickly” — praised the creation of “stealth socialism” in America in a recent interview with David Dayen at Salon.
Speaking about the Federal Reserve’s rapidly-growing balance sheet, Grayson remarked:
We’ve had a government takeover of the bond market. Stealth socialism’s been created. Government simply ends up owning more and more and more. If government had taken over the steel industry, maybe it would have been more noticeable. They’ve taken over the financing of housing industry as well, with a desired result.
The “desired result” of said “stealth socialism,” the congressman said, is “housing ticking up again” and “setting a foundation for recovery for the U.S. economy.”
The Harvard-educated economist also spoke about the broader policies of the Federal Reserve and quantitative easing.
“Conceivably, we might be in a situation where the Fed has to buy $70 billion in assets in perpetuity,” he said. “It’s puzzling why there’s been no market reaction to that. But it has had its apparent intended purpose. It leaves you scratching your head a bit about how it worked and why it worked. You would think more than tripling the balance sheet would have some effect on the value of money, but so far no. There’s been no effect on inflation; in fact, it appears to have prevented deflation, an economic spiral and rounds of bankruptcy.”