Friday, May 29, 2009

Hey, Mr. President, Even the NY Times Thinks Printing Money is Crazy

The Federal Reserve is printing money from thin air, and the government is issuing trillions of dollars in new debt as it tries to spend its way out of the recession with a huge stimulus package, new lending programs, health care overhauls and automotive rescues... Experts warned there might not be enough demand to sop up all those new dollars and dollar-denominated Treasury securities. That led investors to fret about the sustainability of the United States government’s AAA sovereign credit rating...NY Times, 5/23/2009

If the Times thinks that hell's a comin' as a consequence of policies by Democrat majorities in the House and Senate, and a Democrat in the White House, maybe somebody ought to pay attention. The consequences of printed money are not subtle. If you had ten dollars chasing ten dollars worth of goods, and you add another twenty, you still have ten dollars worth of goods, but now they cost thirty. Unfortunately, your budget is for ten. Inflation is a thief in the night. Ask any Argentine immigrant.


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