Obama and Bernanke Monetize the Debt
Obama and Bernanke Monetize the Debt *doctorbulldog * | 11 August, 2010 at 10:36 am | Categories: politics| URL: http://wp.me/p1NPg-6oj
*This is national suicide! *
*Might I point out that just six months ago, Bernanke flat out-and-out lied to Congress when he said stated, “We’re not going to monetize the debt.” *
*Of course, the stock market is reacting wildly, this morning, as investors dump now worthless stock:*
*Monetizing the debt* *By Bill Turner – CFP *
This is a day that will forever live in infamy. [Yesterday] is the day that B. Hussein Obama came out of the closet and began to monetize the debt in earnest. Monetizing the debt is an economic term for shell game. It isn’t like a ponzi scheme, that would be Social Security, it is different and more dangerous. When a consumer monetizes their debt, they pay off the balance of one credit card with another card and use the lower balance card to cover other debt, until the card is maxed out. But, it doesn’t end there. They begin to create more money through the use of payday loans, and every payday they fall further behind, until they can no longer borrow or pay on their debt. This is when families file bankruptcy. But, the federal government does this a little differently, because they have something most of us do not have, a printing press.
Our government is selling debt to the Federal Reserve, for cash, to cover things like paying for the massive spending they have undertaken. This is being done because other lenders, such as China, do not want to loan us any more money, we are a bad risk. This is where the government differs from the typical American household, the government has the Federal Reserve print more money. Problem solved right? Wrong! The more there is of something, the less it is worth. Having more money in circulation, because the government uses the freshly printed money to pay wages, salaries, operating expenses and such causes the money to lose value. Since our money is not backed by anything but the full faith of the American government (that should allow you to sleep better at night) and we are buying our own debt with our own money, while printing more money, we have successfully monetized the debt. So, rather than bankruptcy, you have ruination first.
Deficit spending combined with debt monetization leads to inflation. But, not just normal inflation, the kind of inflation that means that you are not buying a loaf of bread, you are investing in it, as tomorrow it will be more expensive. Aside from needing a wheelbarrow full of money to buy groceries, or being able to take a dollar out of your wallet and make it a ten with your pen, because it is just paper, there is nothing to worry about. Unless, by “nothing to worry about” you mean nothing but:
*Black Markets:* Where a barter system, or inflated prices of goods and services are available.
*Fluctuations*: Fluctuations in both supply and pricing occur, almost daily, and are at the whim of the elite, the ruling class. If the ruling class wants milk, they buy it and you are left to “eat cake”.
*Corruption:* Those with the money and access have the ability to bribe entities to get what they want, leaving the people to be further disenfranchised. * Hyperinflation:* The rapid and uncontrolled price increases and devaluation of the dollar will not last forever.
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