Posted on 11/14/2010 3:54:16 AM PST by Scanian
If you think our economy is in bad shape now, just wait. To be sure, economic prospects for jobs and growth already are bleak, and the Obama administration has increased the national debt in less than two years from over $10.632 trillion in January 2009 to $13.561 trillion in September 2010, resulting in a record 30% increase in public debt.
But fear not. Some of our brightest leaders have got the perfect solution to all these problems:
"Charles Evans, president of the Federal Reserve Bank of Chicago, called for the Fed to do more to charge up the economy, including a new program of U.S. Treasury bond purchases and possibly a declaration that it wants inflation to rise for a time beyond its informal 2% target. ...
The Fed is now considering whether to add to its $2.3-trillion portfolio of securities and loans by ramping up purchases of U.S. Treasury bonds, in an effort to drive down long-term interest rates and boost growth. ...
The Fed also needs to push down 'real' interest rates, nominal interest rates minus inflation, to induce households and businesses to part with savings and borrow and spend more, he said."
It is hard to accept that the head of the Chicago Federal Reserve Bank, or any other Federal Reserve Bank president, or Ben Bernanke, the head of the whole system, believes that by driving long-term interest rates lower than they already are (thirty-year U.S. Treasury Note near 4%), one can convince anyone, much less one half of Americans who did not go broke, to want to borrow enough money to accelerate this economy. It is a preposterous concept.
The most probable outcome will be to ignite inflation.
(Excerpt) Read more at americanthinker.com ...
Bump.
the Fed needs a simple rule: no inflation/deflation greater than 1%
Someone commented a week or so ago that QE2 doesn’t make sense for growth — so it must be happening for a different reason. The likely reason is that we’ve already hit the wall and can’t sell our bonds without upping interest rates dramatically.
They seem to have risen.
The inflation genie is out of the bottle. In my business raw material prices have increased 25 to 40% over the past six months. Many suppliers have levied increases of 15% or more beginning January 1. In response we’ve been passing price increases of as much as 20%. To date I haven’t had one customer blink during the price increase conversation which makes me believe they are getting it from every vendor.
Fuel and fuel prices are rising. Packaging tricks are being used to hide the increases — a half gallon of ice cream is no longer a half gallon. Toilet paper rolls are more narrow.
Medical insurance is skyrocketing. Once negotiations are complete, I expect premiums to go up 15 to 20% for 2011. Another year of this and the company will have to seriously consider dropping insurance and paying the $2000 per employee penalty to the government.
Government statistics are a lie. The CPI is heavily weighted toward housing which will continue to drop in price as average incomes decline and the employment rate rises (supply and demand). The real CPI is over 5% and will be in double digits by the end of 2011 thanks to the inflationary printing of worthless money.
...”Every newly installed Socialist government has its first act: the massive printing of money to pay off all the loyal cohorts and followers and supporters. This assures support for the future “reelection” of the regime. The “$800-billion stimulus” bill and its successors have increased our domestic deficit by $3.0 trillion in the first two years, and proposed carbon taxes and government health care are all part of the script of destruction.
If you are a globalist socialist, the most effective way to destroy our economy and everyone’s wealth is hyperinflation”...
I see great civil unrest coming. Prepare for it, folks..It is just around the corner.
Do you have a solution?
Once I'm set for 3 months, then I go for 6.
Preventing it is key
.
Any government that increases the national debt during peacetime needs to be driven out with torches and pitchforks. Any government that doesn’t end the financial year with a budget surplus should be found to have been guilty of gross negligence or incompetence...
Monetizing the Debt, i.e., massive inflation, is a George Soros tactic to destroy a country’s econoy so that Soros can make billions.
Do you have a solution?
Ron Paul
” Preventing it is key “
The last chance to ‘prevent’ it came in 2008, when President Bush decided that ‘we have to violate Free Market principles in order to ‘save’ them ‘.....
At that point, the boulder was kicked off the cliff, and just because it hasn’t crashed into the bottom yet doesn’t change the fact that it’s gonna.....
It is amazing that it is still put as a question. Anyone who asks it is indicating he just woke up from a years long nap.
I say, let him speak. Let him do his job.
I think Soros is eying trillions now. He is working on being the wealthiest man since Stalin.
It has destroyed America.
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