You remember King Obama's stimulus bill, the one he was so anxious to pass, the one that got hijacked by Harry Reid and Nancy "Air Force 3" Pelosi? You remember that, don't you? It was supposed to be the panacea. It was supposed to fix everything: solve our economic "crisis", end world hunger, bring about world peace and a planet devoted to sitting in a circle singing Kum Ba Ya. How's that working out?
Not so well apparently. The Fed has taken matters into its own hands.
The Federal Reserve sharply stepped up its efforts to bolster the economy on Wednesday, announcing that it would pump an extra $1 trillion into the financial system by purchasing Treasury bonds and mortgage securities.I'm not used to such candor from the media. Oh, wait. It's the International Herald Tribune. That's why. God forbid that our domestic media should say anything that would reflect badly on their Lord and Savior, King Obama.
Having already reduced the key interest rate it controls nearly to zero, the central bank has increasingly turned to alternatives like buying securities as a way of getting more dollars into the economy, a tactic that amounts to creating vast new sums of money out of thin air. But the moves on Wednesday were its biggest yet, almost doubling all of the Fed's measures in the last year. (emphasis mine)
The article is absolutely accurate. The Fed IS creating vast new sums of money out of thin air. This is a recipe for disaster. By inflating the money supply, the Fed is guaranteeing a wave of hyperinflation that will make us nostalgic for the Good Old Days of the 1970's when inflation was "only" 10%.
It seems that the more government and pseudo-governmental agencies like the Fed get involved in the financial problems our nation is experiencing, the worse things get.
Is it redundant to say that?
