A quick followup to my last piece in light of a great article by David Malpass in the Wall Street Journal.
As David Malpass writes in today’s Wall Street Journal, the president and Fed chairman Ben Bernanke “tried print-and-spend in trillion-dollar increments in 2009 and 2010, with no discernible improvement in unemployment.” What has all the money printing gotten America? A dollar with a vastly reduced value. All the weakening of the dollar hasn’t spurred job growth here in the U.S. The Chinese are hell bent on not allowing their currency to appreciate quickly compared to the dollar, and the other major competitors of U.S. manufacturers in Europe and Japan are not willing to see the dollar debased to steal all of their jobs either. This has led the world’s largest economies into what appears to be a currency debasement war, with the U.S. leading the way.
The problem for savers and those on a fixed income here in the U.S. is that currency debasement will leave them without a leg to stand on. Their purchasing power will be vastly diminished when the necessary bout of inflation follows the rapid expansion in money supply. As I wrote last week in my piece The Fed Steals Your Money, and in Mr. Malpass’ words “Near-zero interest rates are hammering savers, while transferring hundreds of billions of dollars annually to bond issuers—mostly governments, banks and bigger corporations.”
Voters must decide in November to eradicate from the halls of government those who are willing to destroy the value of Americans’ money and savings in order to pay for the vast projects they dream up for the ‘good’ of the people.
Cross posted from Richardcyoung.com