By Peter Andrew
Leading the way Right with unique & fun
Conservative American Views.
In two years President Obama is up for reelection. His trillion dollar stimulus did not fix the economy (he knew it wouldn’t) and he has to do something now to save his own rear end. Enter, the Federal Reserve.
Ben Bernanke at the Fed intends to address the short-term problems and to heck with fixing anything long-term! That doesn’t help Obama get a second term. So what do they have in mind for a quick fix?
STEP ONE: Print more money. Print lots and lots of money. Forget the fact this will devalue the dollar and lead to inflation. Just keep printing more money. The Fed plans to print tons of money and get it to the banks with the hope that eventually it will make its way to businesses and individuals who will spend more and buy more.
STEP TWO: Keep the interest rates at or near zero. Give the banks the new money for free. This will encourage them to lend it out, people will have more and spend more and we all live happily ever after.
UNTIL YOU GET TO STEP THREE: Inflation. The fact the government just printed more money does not, in reality, fix anything long-term. Instead of paying $200 for that item you can’t live without, you’ll have a bit more money and you’ll get to pay $232 for it. In inflation adjusted dollars, it gives us… drumroll… the SAME FREAKING MESS we have now! Just with bigger numbers.
STEP FOUR: With inflation and a dollar that continues to lose value, the economy begins to implode. Obama is out of office and the new President will have to tackle the problems Obama should have tackled in 2010.