How The Federal Reserve is Suppressing a Recovery

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We like the look of the gold mining companies. They're relatively cheap. And sooner or later, they’re going to pop up too.
You know why? Ludwig von Mises explained more than half a century ago:

‘If it were really possible to substitute credit expansion (cheap money) for the accumulation of capital goods by saving, there would not be any poverty in the world.’

Few people understand this. But the Federal Reserves ZIRP and QE policies are not bringing about a recovery. They're not bringing prosperity. They're bringing poverty. They're suppressing...repressing...depressing...a real recovery.
Why? Because a real recovery stifles the aforementioned ‘accumulation of capital good by saving.’ People need to save...and they need to invest in real productive enterprises. Those businesses, factories and enterprises then create real jobs and real  wealth...goods...services... stuff.
See how simple this is? You save money. You use it to buy a sawmill or build a software company. You hire people. You cut logs. You produce boards and make a profit. The world is a more prosperous place.
But the Federal Reserve depresses interest rates. Savers get nothing for their efforts. Why bother to save when savings earn such trifling interest? People don’t save...
That's the purpose of Federal Reserve policy: to prevent people from saving. They want them to spend! To speculate! To party...party...party, until someone calls the cops.
No saving...no capital goods...no new production...no new jobs... Hey, no real recovery!
Mr. Keith Eubanks of Arlington, Massachusetts, explained the Fed's policy succinctly, in a letter to The Wall Street Journal:

‘Private investment drives economic growth. The policies currently labeled as "stimulus" and "austerity" are failing because both policies reduce private investment, contracting both the means and incentive for private citizens to invest in their futures.’

In the US, the private sector is still about three-quarters of the economy. If the private sector is not saving and investing in the economy, it will not grow.
‘Stimulus’ policies increase deficits and allow the feds to spend more moneymore @ dailyreckoning