The View From 1776
Sunday, April 24, 2011
Inflation At The Gate, The Fed Talks About Deflation
While flooding the banking system with excessive amounts of fiat dollars, Fed Chairman Bernanke has talked endlessly about the need to avert deflation. Unspoken was the real reason: promoting inflation - robbing retirees and working people who are saving to support their retirements - in order to fund mounting federal debt.
It’s now clear that government stimulus spending, under George W. Bush and Barack Obama, and unending expansion of the money supply by the Fed, have prolonged our agonizingly slow economic revival. That is hardly surprising, since no previous resort to Keynesian macroeconomics has worked as advertised. At most they have promoted stock market bubbles, and all such essays, beginning in the 1930s Depression, have led to continual and ruinous inflation.
The New York Times, the nation’s premier voice of socialist propaganda, admits in a front page, lead article that Stimulus by Fed Is Disappointing, Economists Say.
The Federal Reserve