Wednesday, December 17, 2008

Fed Promises Even Worse Policies For Economy

From The New York Times: "the Fed bluntly announced that it would print as much money as necessary to revive the frozen credit markets and fight what is shaping up as the nation’s worst economic downturn since World War II."

The Fed is going to print more money. We are on the verge of a depression, and the Fed is going to devalue the dollar and artificially drive up prices. Please, somebody go get all the Keynes books in D.C. and New York and burn them. Then fire anyone who has ever thought Keynes, who had everything backwards, ever had anything good to say. Artificial inflation, as opposed to real inflation (prices going up due to economic growth), is devastatingly bad for an economy, as we saw in the 1970's around the world. All it does is send false signals, resulting in high prices AND high unemployment. It's a double sucker-punch to the poor and middle class.

Our government's every action seems designed to drive this economy into 3rd world status. And we just elected people who promised to accelerate the process! Heaven help us. It's all that's left that can.
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