QE3 has begun. The Fed is monetizing our debt again. They’re now going to buy $40 billion of mortgage-backed securities per month to try and begin a recovery in the real estate department. These purchases will continue indefinitly until the Fed is satisfied that our economic conditions and unemployment improve.
What?! We’re going to basically print more money and then buy what no one else will buy and expect that to improve our economy? It will certainly improve lives for people who own gold because that is rapidly rising already over this insane news! But, I doubt it’s going to improve anything for the average person, let alone those that are already
struggling to make ends just meet.
Are the people in American that gullible or just outright stupid that they do not understand even the simplest of economics? When you print money that is backed by virtually nothing, you cause inflation. When you cause inflation, prices rise (wages do not). When prices rise without wages rising, people struggle even more. Pretty simple, is it not?
No amount of printing money and buying back our debt (that pretty much no one else in the world wants to buy anymore) is going to make things better here in the long run. They might pump the economy slightly so the current traitor-in-chief gets a bump in the polls and can claim he did it, but it’s going to be rather painful when the loan comes due.
Here it is in a nutshell, people. Business has money. Banks have money. Neither will spend it and use it to expand because they don’t know what is coming from this crazy insane administration in the future. They’re not about to risk growth and hiring new people without at least a good expectation of a sensible government and plan to help our struggling economy. Would you? Would you go put a new car or new living room set on your credit card if you had
no good hunch that your job would still be there tomorrow?
I am not sure where we are going, but looking down that road looks pretty damn scary to me.