QE: The Numberless Oblivion

If you print a trillion, I'll print a trillion – and other instances of behavior leading the world toward high inflation and political instability

The world seems full of smoke ahead of a world currency war. The weapon of choice is quantitative easing, a.k.a. QE. If you print a trillion, I'll print a trillion. Of course, he and she will too. No change in exchange rates after a trillion? Let's do it again, QE2. If you listen to people like Geithner, the end of the world is quite near. Rich people everywhere are buying gold for a little peace of mind, not just the Chinese. They are literally trucking it by the ton or two home. When currency values vanish in a QE melee, at least the rich have the gold to stay rich.

If you listen to American pundits, politicians or government officials, it's all China's fault. China is far from perfect. Its currency policy certainly isn't. But it is not the cause for the world's ills. The U.S. is by far the biggest source of uncertainty and the initiator of the QE war. Its elite created the biggest financial bubble since 1929, even removing regulations designed to prevent it, and left the U.S. economy in shambles after its burst. The same people want to find a quick cure to hold onto their power. Unfortunately, there is no quick cure.

The U.S. has cut interest rates to zero and run up the budget deficit to 10 percent of GDP. It's a shock-and-awe Keneysian policy. But, after a few quarters of strong growth, the economy is turning down again, and the unemployment remains close to 10 percent. And this figure would be much higher, close to 20 percent like Spain's,

What am I missing? I found most of his comments credible, but did not see a “pattern” that made any sense to me.

His accessment about our “elites” is definately correct. His accessment about our internal financial corruption crisis is correct. His accessment about the Fed’s likely inflation of the currency seems likely.

The problem I see is that efforts to inflate out of the mess may not work. Liquidity injected into the global economy will not necessarily mean that it will be available to be spent in the U.S. That is what happened with the Tarp Bailout. It largely went offshore.

Globalization of the currency is what has been preached as a solution, but it looks like the death knell for any free people who think they can deal with Commies, Dictators and other lying thieves through a common currency.

The issue between Nationalism and Internationalism ultimately falls on the character of the nation. Success and failure is determined by the morals of the people and leaders. On this basis Internationalism ALWAYS FAILS.

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May they bear in mind that it is neither gold nor even a multitude of arms that sustains a state, but its morals.

Denis Diderot- Apostrophe to the Insurgents, 1782

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