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Fire up the presses.
And make sure Ben doesn't run out of ink printing all that money - with nothing backing it up!
Obama bamboozled millions... gave them the old 'okee doke.'
Posted on 03/15/2011 3:50:01 AM PDT by Scanian
Friedrich Hayek's A Tiger by the Tail: The Keynesian Legacy of Inflation was published in 1978. It seems an appropriate description of what Quantitative Easing (QE) has produced. We are far along on a journey that cannot be stopped without enormous damage.
Quantitative Easing is a euphemism for money creation. Money creation is, by definition, inflation. Eventually inflation produces higher commodity and other prices. Inflation can be created by other Fed policies besides QE. However, for purposes of this article, QE will be dealt with as if it is the primary cause (which it has been recently).
According to Chairman of the Federal Reserve Ben Bernanke, we are in phase 2 (QE2) of "money printing." Those knowledgeable of history find this characterization amusing, because the Fed has engaged in almost continuous money creation from its founding in 1913. Since then, 96% of the dollar's purchasing power has disappeared with much of the loss occurring subsequent to the mid-1970s.
Mr. Bernanke initiated his so-called QE2 ostensibly to improve traction for the weak economic recovery. According to Bernanke, the program will end in June. With regard to his promise, Mr. Bernanke resembles Charlie Brown's friend Lucy placing a football
(Excerpt) Read more at americanthinker.com ...
The idea of QE as a panacea or even a tincture of medication for economic ills for an economy the size of the US...such an idea can only spawn in the mind of a nitwit who knows less about economics than I do and who never passed an arithmetic class in his youth...never.
Bump.
QE is nothing more than theft on a massive scale under the color of “law.”
Milton Friedman described it as a tax on money, to be paid by every holder of currency.
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Fire up the presses.
And make sure Ben doesn't run out of ink printing all that money - with nothing backing it up!
Obama bamboozled millions... gave them the old 'okee doke.'
Like I said...theft.
Yes. and both parties can be blamed for that nitwit being where he is.
I think of him every time I pump gas.
I’m sure Bernake knows better. His decision is driven by politics rather than economics.
1% on your savings and a government plan to make your dollar worth less every day.
It is stealing the money of everyone who did not fall into the credit trap.
By hook or by crook Obama is determined to ruin everyone.
Link to full article :Quantitative Easing: Our Tiger by the Tail
According to the government, fuel and food prices rising are not a sign of inflation. Which I guess means if I only didn't need to eat or drive anywhere, everything is just hunky-dory.
Those who don't know any better might wonder where the AARP was when the current formula was adopted. I'm fairly certain they were busy selling memberships to 40-year-olds and lobbying Congress for universal medical "insurance."
You may want to set your DVD/VCR/alarm clock for Thursday morning, St. Pat's Day, at 10 am for the second in a series of hearings by the House Domestic Monetary Policy and Technology Subcommittee. Topic: the relationship between monetary policy and rising prices.
http://financialservices.house.gov/press/PRArticle.aspx?NewsID=1811
It should be streamed live for those with computers and possibly broadcast at a later time on C-SPAN for those without. We can expect a wall of silence from the MSM, both before and after.
Great article — thanks for the post. My homework assignment is to study the economic collapse of the sixteenth century. Interesting comparison.
The AARP is the biggest scam ever perpetrated on the elderly.
They merely hawk insurance and pitch for the Democrats. Screw ‘em.
We are just such a convenient target. The sharks love to prey on us. Obamacare is a prime example. There will be rationing and we old folks will bear the brunt of it.
Homework?
What school do YOU attend?
Sounds like a topic suitable for Wharton.
Anyway, I’m glad you liked the post.
That may be true, but I think the Fed uses the CPI numbers less the cost of food and gasoline.
My understanding is that Bernanke wants only to measure inflation from a US perspective. The theory is that food and gasoline prices are derived from many economic forces and as such are not good indicators of the cost of manufactured goods. (I am only the messenger.)
Don't forget, Bernanke continues to be worried about an economy that may be headed to a depression. One indicator of a depression is falling prices. If he counts food and gasoline in his metric, he gets a skewed measurement.
The depression, of course, is caused by fiscal policy. Woe be it to those countries that try to resolve fiscal problems with a monetary band aid.
I have been classifying our disaster as somewhere between Carter and Roosevelt. The school I attend is the preservation-of-my-capital school! It keeps getting tougher and tougher to get a passing mark!
They are counted.
that reason has to do with the automatic boost SS recipients receive in their checks when the CPI goes up.
They are included in the CPI used to adjust SS.
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