Changes

The Fed doesn’t expand the money supply by uniformly dropping cash from helicopters over the hapless masses. Rather, it directs capital transfers to the largest banks (whether by overpaying them for their financial assets or by lending to them on the cheap), minimizes their borrowing costs, and lowers their reserve requirements. All of these actions result in immediate handouts to the financial elite first, with the hope that they will subsequently unleash this fresh capital onto the unsuspecting markets, raising demand and prices wherever they do.”<ref>[http://www.washingtonsblog.com/2012/04/forget-competing-theories-about-quantitative-easy-what-do-the-facts-show.html  Does Quantitative Easing Benefit the 99% or the 1%?]</ref>}}

The Fed doesn’t expand the money supply by uniformly dropping cash from helicopters over the hapless masses. Rather, it directs capital transfers to the largest banks (whether by overpaying them for their financial assets or by lending to them on the cheap), minimizes their borrowing costs, and lowers their reserve requirements. All of these actions result in immediate handouts to the financial elite first, with the hope that they will subsequently unleash this fresh capital onto the unsuspecting markets, raising demand and prices wherever they do.”<ref>[http://www.washingtonsblog.com/2012/04/forget-competing-theories-about-quantitative-easy-what-do-the-facts-show.html  Does Quantitative Easing Benefit the 99% or the 1%?]</ref>}}

== Destruction of capital for investment and a cause of malinvestments ==

== Destruction of capitals for investment and a cause of malinvestments ==

In May of 2012 Chris Ferreira wrote:  

In May of 2012 Chris Ferreira wrote: