- Corrupt Central Banks ‘Print Money Every Time They Make a Mistake’ – RT’s Keiser Report
The European Central Bank’s corporate bond buying program has led to extreme malinvestment and misallocation of capital, allowing companies to make questionable decisions.
RT’s Keiser Report discusses the issue, using as an example German pharmaceuticals company Bayer’s takeover of Monsanto. According to Max Keiser, every central bank “willing to finance dodgy deals crowds out the good companies, so you end up with a lot of bad companies.”
He says central banks should not be allowed to do deals as they only print money to make those deals. “Every time they make mistake they just print more money. And that methodology is now working its way down to a corporate level,” Max explains. “We’re living in meritocracy where everybody is free to compete; you just have to be better than the competition,” says Stacy Herbert.
In fact, they are “propping up dodgy competition maybe that’s why we have this ongoing crisis because these huge corporate behemoths just run out of ideas other than buying their own shares and taking free money from central banks.”