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Fed Faces Its Zimbabwe Moment
Forbes ^ | August 8th | Joshua Zunbrun

Posted on 08/14/2009 5:00:49 AM PDT by Halfmanhalfamazing

WASHINGTON -- When stock markets plumbed new lows in March, the Federal Reserve responded with nearly every tool in its box. It announced it would create new money to buy $1.25 trillion in mortgages and $300 billion in government debt. That purchase of government debt looked particularly ominous. Creating new money to buy government debt is the sort of strategy that's known to destroy economies--just ask Zimbabwe, which suffered so much hyperinflation that it destroyed its currency. The Zimbabwe central bank printed bills in the denomination of 100 trillion Zimbabwean dollars, then found they had value only as a novelty item on eBay. Eventually, Zimbabwe was forced to abandon its currency altogether.

(Excerpt) Read more at forbes.com ...


TOPICS: News/Current Events
KEYWORDS: fed; federalreserve; hyperinflation; zimbabwe
Printing money will have disastrous consequences
1 posted on 08/14/2009 5:00:52 AM PDT by Halfmanhalfamazing
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To: Halfmanhalfamazing

But cash for clunkers is good ...


2 posted on 08/14/2009 5:09:40 AM PDT by Mark was here (The earth is bipolar.)
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To: Mark was here

I think “Cash for Clunkers” should be the new name for “Campaign Finance Reform”....

hh


3 posted on 08/14/2009 5:10:56 AM PDT by hoosier hick (Note to RINOs: We need a choice, not an echo....Barry Goldwater)
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To: Halfmanhalfamazing
"The Zimbabwe central bank printed bills in the denomination of 100 trillion Zimbabwean dollars, then found they had value only as a novelty item on eBay. Eventually, Zimbabwe was forced to abandon its currency altogether."

The way Obama is going, which may be intentional in the name of the global Marxist government that the elitists in the UN are trying to establish, we could end up the same way.

Russia, some Middle eastern Islamic countries, most notably Iran and others in the EU are pushing for a world currency.

At the very least, we are heading for hyperinflation if Obama is allowed to continue spending like a drunken sailor. This health care bill would be more than enough to send our dollar over the edge.
Spending and printing has to stop NOW.

4 posted on 08/14/2009 5:16:23 AM PDT by Nathan Zachary
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To: Halfmanhalfamazing
All I hear in the media is happy economic news. That Recession? Oh, that's already over. We're good now. Have a nice day.

The angry people at Town Halls were one thing. Just wait until the currency collapses.

5 posted on 08/14/2009 5:27:46 AM PDT by ClearCase_guy (Play the Race Card -- lose the game.)
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To: Halfmanhalfamazing
Printing money will have disastrous consequences

What else can the idiots do?

Borrow more ... we're tapped out.

Tax more ... we're already choked to death.

Cut spending ... unthinkable!

6 posted on 08/14/2009 6:12:15 AM PDT by Zakeet (Obama: Always wrong, never in doubt.)
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To: ClearCase_guy

Been stockpiling cash for about a year. If the inflation monster kicks in, we will be able to buy food. As for the media saying whatever, this is the same media that is part of this administration so they will say whatever makes ozero look good. It would be very foolish to believe them. We need to treat the media the way Regan treated the soviets. Trust buy verify.


7 posted on 08/14/2009 6:15:44 AM PDT by Texas resident ( Boys and Girls, it's us against them.)
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To: Texas resident

Another thought.

We the American taxpayers have become Reagan

The ozero team and their media are the soviets.

Pretty simple to me.


8 posted on 08/14/2009 6:17:04 AM PDT by Texas resident ( Boys and Girls, it's us against them.)
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