The Federal Reserve is monetizing our debt... Back Door Bernanke is selling federal bonds out of the front door and one week later buying them at the back door with money the Federal Reserve just printed... I'm not an economist, I'm not even a college graduate, but it doesn't take either to figure out this is a disaster in the making... How much more money does "BDB" think the Chinese are going to lend us when he's inevitably causing hyper inflation? The Federal Government can say all they want to about trying to curb inflation, but with this transpiring, the truth rears its' ugly head... Inflation is actually a way for the Feds to increase the tax coffers without actually raising the percentage we are taxed... The problem lies in controlling the inflation... Can you remember the Carter administration? Not only did the Peanut Farmer empty the prisons and asylums in Cuba (who can forget the Mariel Boatlift) but inflation and interest rates were in the 18% range...
I've got an idea... As hard as this may be for the federal government to follow, please give it a try... Are you ready???
STOP SPENDING MONEY YOU DON'T HAVE!!!!!!!!!!
As brilliant an idea as this may be, the idiots in Washington can't seem to grasp the concept... Using credit, I personally can spend slightly more than I'm making in a month, but not for long... These morons seem to think that this rule of economics obviously doesn't apply to them... My mother taught me two valuable lessons for life... (actually many more than two, but for simplicity we'll stop at two)
- Never draw to or bet on an inside straight
- Don't spend more than you make
Unfortunately the federal government is doing both... (to quote Mother Dearest, "that wasn't very smart now was it")