From Larry Miller at politicalchristian.org
The Federal Reserve has announced that it will be buying 45 billion a month in government bonds. It’s just one of the results of our spendthrift government’s inability to master its Santa Claus and controlling impulses. Some would say it’s public spirited effort on the part of our central banker in chief, Ben Bernanke.
It may be better than giving the Chinese more influence in our land, but let’s consider this a little more closely. When the Federal Reserve buys these bonds, it’s not like you or I buying Series Es. Setting aside for a moment the wisdom of such an investment, we get the money together and write a check. Then we get our bonds – which we really don’t anymore. We get credit in a government account. When the Fed buys bonds, they don’t get the money together… they “print” it [fake dollars].
Then, to make it even more interesting, they expect to be paid back in real dollars purloined from the American tax payers. Al Capone or John Gatti could not have come up with a better, or more dishonest scheme to fleece the good people of our land. The Fed calls it “quantitative easing”, whatever that means, while the rest of us would call it counterfeiting if the perpetrator was anyone else.
What the Keynesians don’t tell us – and don’t really believe themselves – is that throwing dollars at our problems doesn’t work. Not only that, but increasing the money supply with no corresponding increase in production only leads to inflation since more dollars are chasing the same amount of goods, so prices rise...
Read it all here...
- Jim Rickards: the Fed is Racing to Create Inflation Before the US Economy Implodes!.
- The U.S. Federal Reserve Should Be Declared a Currency Manipulator
- Our Government-Created Financial Crisis