Posted on 11/03/2010 12:34:42 PM PDT by mojito
The question being asked all across the world of business news is: Will QE2 be successful? Because this policy is literally economic suicide, the question becomes: Will the Federal Reserve be successful in the assisted economic suicide of the U.S. government? I find this an utterly appalling question -- which highlights the intellectual bankruptcy of government policymakers and the bankers who goad them onward.
Quantitative easing is nothing more than a euphemism for printing money out of thin air. Its one-and-only purpose is to destroy the currency being printed. It is pure dilution and absolutely no different than a corporation vowing to improve its fiscal performance simply by printing a lot of new shares.
We can illustrate the inherently evil nature of this monetary abomination by working through the "mechanics" of this policy. First, the explicit goal of QE2 is to increase inflation. By now, all readers should be familiar enough about "inflation" to know that it is literally nothing more than the speed with which our currencies are being destroyed.
In the case of the Federal Reserve, we understand all too well how "successful" it has been in creating inflation. Since it was invented in 1913, the Federal Reserve has been directly responsible for the U.S. dollar losing 97% of its value (i.e. inflation has raised prices by more than 20 times what they were in 1913) -- despite the official mandate of the Federal Reserve for "price stability" (i.e. protecting the dollar). Now, Ben Bernanke is vowing to "succeed" in destroying the remaining 3% of value of the world's reserve currency.
Here is how printing money accomplishes Bernanke's "goal."
(Excerpt) Read more at realclearmarkets.com ...
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Watch for a march to commodities to hedge against inflation. You can purchase funds tied to commodities and precious metals. Alternately, invest in a fund with rising monitary rates vs. the dollar (Australia, China, etc). Don’t tie yourself to stocks and investments tied to the US economy and the dollar.
Just my opinion, and I’m not a paid investment consultant, or play one on TV. But I did stay at a Holiday Inn Express. LOL.
Once again, it’s Jimmy Carter 2.0
Then again, maybe not....
OPEC will drop the dollar benchmark for oil. That, and investors rush to oil futures will be catastrophic. If you think gas is expensive now, just wait.
“Once again, it’s Jimmy Carter 2.0.”
It is far far worse than that. Last night was nie but some states are hopelessly corrupt.
"Ah, Ma!" wails the kid, "Can't I just do it 'till I need glasses?"
High inflation achieves more than one of Obama’s goals. First, inflation keep us out of an “official” recession because it ensures that GDP does not decline. And Obama is all about making himself look good. When inflation does finally kick in sometime down the road it can be blamed on greedy capitalists and it can be used as an opportunity for more government control. Plus, it is a form of redistribution of wealth by taking money away from those who have it. And with Republicans taking over the House of Representatives it is really his only tool left to destroy our economy anyway.
Thanks for the post.
bttt
>If you think gas is expensive now, just wait.<
The envirowhackos will be dancing in the streets.
ROFLMTO, so did you get a discount by using Priceline.com, and named your own price...hahahaha
AND if inflation and this quantitative easing destroys jobs, it will make the democrats look good in 2010. WE ALL need to pray for impeachment immediately, and is there anything Americans can do to stop Fed from printing money?
2012 my apologies for wrong year.
That has already been going on for a long time. The Fed and member bank system creates the money from nothing. Then the government borrows the new money at interest.
The crime here is the unnecessary requirement to pay interest to the banksters on money created from nothing. That money should be available at zero interest to pay off the National Debt and supplement tax receipts.
If Fed banks demand more than zero interest on money created at zero cost, the government could break that cartel by chartering new banks. Congress or the Treasury could prevent inflation by placing limits on the amount of new money creation.
pinging myself so I can read this again later.
I might need to piss myself off a little more. :-(
Yes, the Fed creates money from nothing.
Then the government borrows the new money at interest.
Yes, whenever the government borrows money from anyone, the government pays interest.
The crime here is the unnecessary requirement to pay interest to the banksters on money created from nothing. That money should be available at zero interest to pay off the National Debt and supplement tax receipts.
LOL! The Fed pays more to the Treasury than the interest the government pays to the Fed.
Last year the Fed gave the Treasury $47.4 billion to pay off the National Debt, versus $22.9 billion earned on Treasury Securities.
The Fed earned these billions in profits on the trillions it created to bail out and cover up for mortgage backed securities. These investment assets purchased by the Fed are likely only worth pennies on the dollar in true value. We shall see.
The Fed cannot continue to risk inflation by creating new money at such a high rate, but even if it could, these trillions could be loaned at zero interest to pay down the debt and cut taxes instead of bailing out the financial lawbreakers. There is no excuse for the government to pay interest on money created from nothing at zero expense and there is no need to borrow preexisting money from third parties if new money from the Fed can suffice. The National Debt is a scam.
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