Monday, November 08, 2010

The Keynesians Get Their Wish

by Peter Raymond - November 6th, 2010 - The American Thinker

The Keynesians finally got their wish. The Federal Reserve plans to inject $600 billion 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.

Having shoved a trillion and half dollars of useless meaningless waste into our money system last year, Obama is now starting to shove another trillion dollars in inflation inducing "printed money" this year, along with another increase in the national debt to support more government waste that produces no wealth. As much as the euphoria of the Republican victory in the election bolstered the stock market, how can a continuation of these policies to devalue our currency not create another economic collapse?


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