The question being asked all across the world of business news is: Will QE2 be successful? Because this policy is literally economic suicide, the question becomes: Will the Federal Reserve be successful in the assisted economic suicide of the U.S. government? I find this an utterly appalling question — which highlights the intellectual bankruptcy of government policymakers and the bankers who goad them onward.
Quantitative easing is nothing more than a euphemism for printing money out of thin air. Its one-and-only purpose is to destroy the currency being printed. It is pure dilution and absolutely no different than a corporation vowing to improve its fiscal performance simply by printing a lot of new shares.
It is an effective means of confiscating property and the real value of our assets.
Does anyone remember the Weimar Republik?
Inflation encourages debt, which is another form of slavery.
KILL THE FED – either destroy the Fed or the Fed will finish destroying the economy. The banks who own and control the Fed will never stop using the Fed to steal the wealth of America so long as the Fed exists and so long as there is any wealth to steal. Now while the people are beginning to understand that the Fed is nothing more than a gigantic theft machine owned and run by the banks for their benefit alone is the time to begin exerting real pressure on our Representatives to kill the Fed.
Since when has printing more money because you have the power to print it been anything other than destructive? That swooshing noise is Greshham’s Law rushing into thehouse. Larry
Inflation is a way:
1. The government not facing up to its responsibilities — it will get more tax because people are paid more money. You don’t have to have much of a progressive tax regime to get big gains as people move up into higher and higher tax brackets
2. People not facing up to their debt responsibilities – the amount you borrowed becomes less and less compared to your income as your income rises with inflation but your debt does not
3. Let homeowners escape facing up to their poor judgments – house prices will rise with inflation so that eventually it will look like the house is worth more than the debt owed on it.
But it does so at the cost of:
1. making savings less attractive — why save money when its only going to be worth less later on;
2. making the exchange rate fall so that it raises the cost of imports fueling further inflation — so that it becomes a vicious circle; and
3. it disadvantages anyone who is unlucky enough to be on a fixed income – mostly retirees — so it redistributes money away from fixed (and usually low) income earner to people who have assets which keep pace with inflation (stocks, property).
It is an underhand way of government making all of these choices without telling anyone it is making them. So ultimately it lets politicians away with poor decisions as well.