When The Economist is not distracted by its obsessive hate of Israel, it can think quite sharp. For example, Buttonwood comments on Pauk Krugman's note (carelessly titled "Who are the rentiers?"):
So if rentier rule was marked by sound money, balanced budgets and positive real rates, what do we have now? Two years of quantitative easing, huge budget deficits and negative real rates. 19th century central bankers would regard this era with anathema. That is what struck me as so strange about Mr Krugman's argument.Buttonwood says, if I understood him (and I'm under pressure to finish that stupid metal working factory's design) is that the battle is between the rentier class and the working class, and inflation favours this or that group. Bernanke is working to the benefit the rentier group that owns stocks. He implies that higher stock prices do not create value from the blue sky, but extract it from the working class. We have not advanced one inch from Marx's basic understanding of the economy.
One element of confusion in this argument is the rule of QE this time. It has been designed to push up share prices, as Mr Bernanke and its supporters attest. But it has been more successful (in my view) at bolstering equities than it has in boosting the economy (unemployment was 9.5% in August 2010, when the QE2 policy was unveiled and is 9.1% now). The stockmarket seems to be drifting lower in the absence of a QE3 programme (which Mr Krugman desires). But higher share prices do benefit the wealthy, Wall Street bankers and CEOs. If they are to be defined as the sole members of the rentier class, then he is in favour of handing them a huge bonus.
PS.: חברה, let's be honest with ourselves. As shown in the table above (vide Krugman), 50% of all stock is owned by 1% of the population. Who are the rentiers? asks Krugman. You dont have to read Forbes 500 nor Stormfront to know that too many of them are ethnic Jews. Put that together with what Krugman says, that the American working class is being exploited by the plutocracy aka rentier class, and that the situation is rapidly worsening, you arrive to the conclusion that American Jews should be busy packing their bags. America can barely pay the interest on its debt, so inevitably is facing a period of harsh austerity and social stress. The standard of living has been falling for a decade, soon the dollar will have to be devalued, unemployment and the cost of living will rise. American Jew, what are you waiting for? Sell everything while your stock is worth something and move to Israel. Learn from Argentine Jews who sold their apartments for peanuts. Learn from Soviet Jews who left without anything and even had to pay back the cost of their education. Learn from this old Hungarian Jew. The Shomron is waiting for you.