Zero-Interest Rate Policy (ZIRP) & Quantitative Easing (QE) Support Increased Deficits & Debts to Fund America’s Wars

The American government is fighting multiple wars that are both endless & costly. Any sort of government spending tends to provide incenctives for thos groups that prosper from that spending to engage in strong lobbying pressure to maintain or increase spending levels, even if there is evidence that that few, if any, of the objectives are met.

Consider the “War on Poverty”:
America spent $22T on “War on Poverty” (in constant 2012 dollars), when adjusted for inflation, the amount is 3 times more than spent on all wars after 1776
More than 100 million Americans, about 1/3 of the US population, received aid at an average cost of $9,000 per recipient in 2013.

US Census data indicate that 14% of Americans remain poor, i.e., the present poverty rate is about same as in 1967 just after the beginning of the “War on Poverty”.

Global spending for drug law enforcement, i.e., the “War on Drugs”, exceeds $100 billion each year. Drug use continues unabated & has increased over the entire time in the USA.

From FY 2001 – FY 2014, spending on the Overseas Contingency Operations, i.e., the “War on Terror”, to pay for wars in Iraq and Afghanistan was $1.492T

Much of this spending depends on the capacity of the US Federal government to borrow funds at near-zero interest rates to support fiscal deficits that continue to add to a massive amount of public-sector debt.

If you hate wars, military or otherwise, something must be done to rein in monetary mischief undertaken by the US & other central banks.

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About christopher

Content of "Natural Order" attempts to reflect the commitment of Universidad Francisco Marroquin to support the development of a society of free & responsible individuals. The principal commentator for this blog is Christopher Lingle.

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