David McWilliams: In punk economics the kidnapper wears Prada
AS the US Federal Reserve moves away from its historic stimulus, economist David McWilliams looks at an era when financiers are the kidnappers.
He calls on his childhood experiences to demonstrate his point – “When I was a kid growing up in Ireland the IRA regularly kidnapped people.
“Sometimes these people were businessmen, sometimes they were foreign executives – and once the terrorists even kidnapped a horse."
But all the time the same scenario played out. The kidnappers demanded a ransom and if they didn’t get the ransom, they threatened to kill the hostage.”
McWilliams looks at our modern economy – who gets all the money and why today's kidnappers wear Prada – and calls for viewers to "Wake up."
We get an insight into the stark reality of what happens when the kidnappers are financiers.
"Today's ransom is the billions of dollars in the form of QE; today's hostage is the US economy which the kidnappers threaten to kill by a collapse in asset prices if they don't get more and more free money... and who is paying the ransom... it is the Federal Reserve...
“The message from Wall Street - the kidnapper - is: if you don't give us what we want, we will kill the economy."