Skip to main content
VIDEO FEATURE: Heck Debates Malcolm on Porn & Santorum 

a service of Attaboy Productions, Inc.

Friday, December 03 2010

Ultra-liberal columnist Stephen Dick exposes his complete lack of understanding an issue yet again. He recently wrote in defense of the Federal Reserve's announcement to buy another $600 billion of debt. Mr. Dick blasts anyone who dare suggests that this is a bad idea (in his land of left-believe world, the only opposition comes from the GOP).


On an emotional level, Mr. Dick's and Mr. Bernanke's sentiment is admirable: spur economic recovery and get businesses hiring. The sad truth is that in order for this to actually work, all normal economic sense must be suspended.


Independent analysts at Weiss Market Research indicate that the Fed's move is not without its cost. Indeed, Larry Edelson calls the Fed's action a "big fat lie:"


Here's why:


First, because the whole concept of "buying Treasuries" is a smokescreen. What Bernanke is really doing is running the money printing presses, and it's no secret. Even the emperor himself knows he has no clothes.


Second, because Bernanke also knows ? all too well ? that he's not truly pumping money INTO the U.S. economy. In reality, the U.S. economy is leaking like a sieve. So for all practical purposes, he's pumping the money OUT OF the U.S. economy ? to countries overseas.


Third and most important, the "big number" ? $600 billion ? is meaningless. The Fed says quite bluntly that they will . "regularly review and adjust the program as needed to best foster maximum employment and price stability." In other words, they'll blow right past the $600 billion mark whenever and however they darn please.



The biggest bottom line is that the Fed's action intentionally devalues the dollar. Saving for the future? Have parents or grandparents living off of their fixed income? Those precious U.S. dollars will be worth less as commodity prices rise.


Now liberals like Mr. Dick stampede to ridicule talk of inflation as nothing but made-up mythological apocalyptic crazy-talk from those dastardly Republicans:


The congressman from my district, Mike Pence, wants to see Congress strip the Fed's mandate on unemployment and concentrate on inflation. There are a lot of problems with this, but start with the fact inflation is almost nonexistent.



Then in typical liberal fashion, he immediately contradicts himself as he writes:


(I know, anyone who goes to the grocery or to get gas or to a movie might argue with this.)



There is a reason we "might" argue with this: inflation is real. Although not reflected through the magic of the official government numbers - yet - commodity futures prices have already accelerated upward. Four commodity futures indexes tracked by Bloomberg show that new highs have been reached in late October to early November. Even though they have backed off since then, the uptrend remains in place. Global demand and a devalued dollar will be a bitter pill for the average American to swallow. Martin Weiss offers this sobering conclusion:


Recession is actually the LESSER of the evils! Turning to the possible government responses to the problem, the CBO follows Dad's logic almost to the letter, writing that .Bankruptcy ? defaulting on U.S. debt ? would be a disaster, making it extremely difficult for America to borrow for many years to come.


Cheating and stealing (e.g., printing money) ? which, as Mike Larson explained on Friday, now seems to be what Fed Chairman Bernanke favors ? would also be a huge mistake, again making it much harder for the U.S. to borrow in the future.


In conclusion, the ONLY viable option, says the CBO, is . austerity. Yes, they admit, it would have negative consequences, driving the economy into a deeper recession. But, they say, a deeper recession would be the lesser of the evils.


This is the urgent dilemma America faces right now: Do we want to continue playing games with our money . or do we want to treat it with the respect it deserves?


If we do the wrong thing, we will doom future generations ? and ourselves ? to impoverishment. If we do the right thing, more economic pain is inevitable. But outside the fantasyland of Washington and Wall Street, it's the only viable option.



Mr. Dick can believe what he wants, but economic reality will, without doubt, have the final say.

Posted by: TheOldSalt AT 08:43 am   |  Permalink   |  0 Comments  |  Email

Post comment
Email Address

(max 750 characters)
* Required Fields
Note: All comments are subject to approval. Your comment will not appear until it has been approved.

click between 3-5 pm ET