I honest to God don’t know how anyone can take the Huffington Post seriously. They have zero credibility because they just blab liberal talking points instead of actually examining issues or looking at facts. The latest piece that has confirmed this for me is “QE2 Geneates Instant Wealth Creation” where the author Robert Lenzner praises the latest Federal Reserve action I wrote about last night. He claims this is a great idea, saying that it’s “a measly $600 billion.” Are you kidding me? This is money we are printing. We are beyond broke right now. Has this guy even looked at what the last budget deficit was or better yet, what the national debt is at right now? It’s nearly $14 TRILLION!! And he points out that all the markets are up. They are because this is creating nothing but a bubble, a bubble being added to the one that already exists. The markets have gone up since they all bottomed out in December 08 and February 09 but there really hasn’t been any economic growth. The Fed has been injecting money into the market the whole time creating this bubble. It’s going to pop and with this new $600 billion one we’re about to add to it, it’s going to be bad. If you thought the housing bubble popping was bad, you haven’t seen anything yet. And this guy makes the comment that gold is going up as well. Well duh, it’s because the dollar is being further devalued and people know that this thing is going to pop at some point so when the dollar is worthless, they’ll have something of value. When the dollar is devalued, you’ll need to spend more to get the same amount of a product. Is this really a good idea? No. This is going to be a disaster.
Oh and never mind the fact that if this was going on under President Bush they’d probably be completely against this, furthering the exact same arguments I’ve just put forth. Hell, they bitched about the spending under him, vowing to reign in spending and the deficits but instead spent like there was no tomorrow, making President Bush’s fiscal policy look frugal. Like I’ve said on here a few times, I just want people to be objective and fair. I’d oppose this if this was happening on President Bush, just like I’m opposing it now. When this thing does pop though, I guarantee they’ll go back to blaming President Bush, despite the fact that he has had no hand in this. I hate when people talk about this or that and how bad it’ll be but this, all I can see is the freight train that is about to hit us at some point. I don’t know when but it will. We can’t keep doing this type of thing.
We have supposedly smart people making this decisions but I think the Fed’s books are so bad right now that they need to do this to keep it from collapsing right now so they’re just kicking the problem down the road so someone else has to deal with it. I’d rather we follow the old adage that says “an ounce of prevention (or the pain of reform right now) is worth a pound of cure (complete economic collapse that makes 2008 seem like nothing).” We need to bite the bullet now and take this pain before it destroys this country. With all this going on and how dangerous this type of policy is, it’s no wonder President Thomas Jefferson once said, writing to a friend in 1816, “I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.”