When all you have is a hammer, everything looks like a nail.
Ben Bernanke, Chairman of the Federal Reserve (which is neither federal nor a reserve), last week announced another round of dollar printing - called Quantitative Easing #3 (or QE3). Crazy "sound money" proponents also call it "monetizing the debt."
The Fed says it expects to "buy" $40 billion worth of mortgage-backed securities bonds every month until... well... until whenever the hell it feels like the economy is fixed and the unemployment rate is low enough. Don't worry, Bernanke will let you know when enough is enough.
Is there any idea how much this could cost us- err... I mean... cost our grandchildren?
Forecasts from 52 economists for the ultimate size of the program ranged from $250 billion to $2 trillion, the poll found.
Republican Vice Presidential candidate Paul Ryan called it "insidious."
"One of the most insidious things a government can do to its people is to debase its currency," Ryan said at an outdoor rally in Oldsmar, Florida. "We want honest money; that means we want honest government. It's one and the same. The secret to prosperity is not more money printing."
Gosh, I can only this presidential race can have SOME discussion on debasing our currency! Unfortunately, the first mention of the topic will likely prompt undecided independent moderates to click over from the TV debates to "Here Comes Honey Boo Boo." But a news junkie can dream.
The GOP says this latest round of currency creation proves the Obama Administration policies have not worked. The Obama campaign's response:
"Congressman Ryan has no credibility when it comes to helping the middle class," said Obama spokesman Danny Kanner.
Wait... was that a response?
The problem here isn't just a single misguided administration. The easy money banking racket predates President Obama, and has been used by our federal government (both Presidents AND Congresses) for decades. Both parties are to blame for runaway spending that is funded by fictitious wealth generation.
It's two years old, but here's Peter Schiff with a great analysis of the root problem: a weak currency due to runaway borrowing enabled by the Federal Reserve.
It's definitely worth 6 minutes of your time.
Hammer, meet nail.
