It was with a certain wry amusement that I read on Bloomberg about how Republicans in Congress are attempting to stop Federal Reserve chairman Ben Bernanke from debauching the dollar further via a second bout of quantitative easing (i.e., creation of new credit out of thin air). The tone of the piece is not that hostile to the Republicans making this attempt.
Given the dramatic reverse for the ruling Democrats in early November, there could be a decent chance that even if the Fed is able to go on down the path to monetary lunacy, that at least it will no longer have political cover from those men and women on the hill. If the Republicans can make “honest money” a serious campaign slogan for the race for the White House, it should hopefully create a good environment for our ideas.
“Debauch the dollar”? Where’s the evidence that this will happen? The first round of QE had no observable effect on inflation in the U.S., just as many of us predicted.
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