The government makes it very easy to bring on prosperity. Print more money. If that’s always the solution, then why not do it sooner, bigger, and faster? The Federal Reserve has decided to pump more funny money into the economy. On cue, the stock market rallied:
“The Federal Reserve fulfilled expectations of more stimulus for the faltering economy, taking aim now at driving down mortgage rates until an improvement in unemployment that the central bank says will be a problem for several years.
“The Fed said it will buy $40 billion of mortgage-backed securities per month in an attempt to foster a nascent recovery in the real estate market.
“The purchases will be open-ended, meaning that they will continue until the Fed is satisfied that economic conditions, primarily in unemployment, improve.
If this is all it takes to rev-up the economy, then why doesn’t every nation do it?
It’s highly suspicious that the money pump is being tapped less than two months before the election. Everybody with any sense knows that an artificial stimulus is just that — artificial. It’s not real.
An infusion of money only makes what money we hold in our hands and have invested worth less over time. This is simple economics.
The best investors know this. They’re the ones who will benefit after the suckers go all in. The less savvy investor will end up holding the empty bag when the system implodes.
When this round of “Quantitative Easing (QE3) doesn’t work, what’s the next step? I’ve always wondered how liberals can be for dumping money they don’t have into the economy to stimulate it, but they are opposed to allowing working people and business owners to keep more of their money. With more money in the hands of consumers, the economy thrives. When people realize they can keep more of their money, they pay off debt, save it, invest it, and spend it.
Governments don’t know what economic decisions people make each day. Government is not a god. Individual consumers know what they want to buy and at what price. When this happens, everybody wins.
As has been pointed out numerous times, lower taxes stimulate the economy and generate additional tax revenue. I would like to see lower taxes and less spending. This would mean less money for the government to steal from us and spend on others to get them votes.
Government induced Inflation (an increase in the money supply, can be devastating.
A medal commemorating Germany’s 1923 hyperinflation of the Mark reads:
“On 1st November 1923 1 pound of bread cost 3 billion, 1 pound of meat: 36 billion, 1 glass of beer: 4 billion.”
Inflation is theft. Mark Rushdoony writes:
“Every hour of every day the government is stealing your wealth, and, like a good thief, is never suspected. It does it by creating paper (or digital) money and spending it, just like a counterfeiter.
“Scripture demands just weights and measures (Lev.19:35–36; Deut. 25:13–15). Obviously, a butcher who holds his finger on the scale when he weighs meat violates this requirement. However, this demand is also a reference to money, which was then also by weight of gold and silver and was counterfeited by adding impurities to it so that its weight was unjust. Tampering with scales or the money that measured wealth in economic transactions was called ‘unrighteousness’ (Lev.19:35) because it was theft.”
And it still is, even if the government or the Federal Reserve does it.
Inflation works until people realize their money doesn’t buy what it used to. People on a fixed income are hit the hardest. So enjoy the ride up, but remember, what goes up will come down.Don't forget to Like Godfather Politics on Facebook and Twitter, and visit our friends at RepublicanLegion.com.