Quote of the Day: Inflation is music to the ears of stock market investors

Stock market investors care about the bad news in Europe, the United States, and China. They care deeply. The looming decline of all of these economies will let central bankers inflate with abandon, just as they have ever since 2008. Inflate! That is music to the ears of stock market investors.

Of course, it’s not called inflating. It’s called easing.

It’s not called counterfeiting. It’s called accommodation.

It’s not called debasement. It’s called active monetary policy.

The worse the economy gets, the better it is for Wall Street . . . until it gets really bad. Then Wall Street rolls over and plays dead.

Wall Street wants counterfeiting by the FED. So do Keynesians. The word “taper” terrifies Wall Street. It terrifies Keynesians, too. And as for “exit,” Wall Street and Keynesians unite: “No exit!”

That’s what the federal budget deficit offers: “No exit.”

That’s what the unfunded liabilities of Social Security and Medicare offer: “No exit.”

That’s why the Great Default is coming.

This is from Austrian economist Gary North at the TeaPartyEconomist.com

I would call this substance abuse only in the form of inflation.