Quote:
Originally Posted by buckman
This would be a great trip for the Chamber of Commerce to be involved in. I doubt they were invited though
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indeed...Crony Capitalists only on this excursion...I'm expecting O to to a lot of bowing and begging them on bended knee to buy our debt....
November 06, 2010
The Keynesians Get Their Wish
By Peter Raymond
The Keynesians finally got their wish. The Federal Reserve plans to inject $600 billion dollars of the most caustic debt imaginable into the economy. This is the Agent Orange of monetary policies that has the potential to wreak financial havoc.
In the hope of generating inflation, the central bank is going to enable deficit spending by buying treasury bonds. You read that correctly; the primary goal is to erode the value of the dollar, and we get to watch our currency and wealth literally dissolve before our eyes.
Only a desperate government would consider debasing its own currency. The resulting inflation will be an insidious tax on every American who will suffer as wages lag behind increasing prices. It is doubtful countries like China will react favorably to the precipitous drop in the value of the debt owed to them.
This strategy of monetary sabotage will punish savers and creditors, but Keynesians simply will not tolerate anything that impedes deficit spending. Since deflation hamstrings spending, they will stop at nothing to reverse deflationary pressures.
On June 28, 1978, Federal Reserve Board Member Henry C. Wallich addressed the graduating class at Fordham University. "Inflation," he informed the graduates, "is a means by which the strong can more effectively exploit the weak. The strategically positioned and well-organized can gain at the expense of the unorganized and aged."