Crash The US Economy or Trash The US Dollar
If they do not create too many US dollars, they would allow the economy to crash. But it would crash faster, not crash as badly, and would repair itself a lot faster.
(more on the fast 1920 depression that nobody talks about in a later post)
Politically they are between a rock and a hard place. The history of human nature of both those in power and those who have given over their power to government says that both want to delay the day of reckoning for as long as possible no matter the cost in real terms, in degree and time. Neither group wants to "do real", "do reality", "get real" or "face reality".
"There are perhaps 5% of the population that simply can't think.
There are another 5% who can, and do.
The remaining 90% can think, but don't."
-- R. A. Heinlein, The Moon Is A Harsh Mistress
The US Treasury/Fed combo have already spent, made guarantees and promises totaling over $13 trillion in less than a year. That is practically speaking, eventually, almost doubling the US dollar supply in less than a year. Most people need serious protection from this, in the form of gold and silver, but still do not realize it.
"The best way to destroy the capitalist system is to debase the currency" - Nikolai Lenin
"When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it." - Frederic Bastiat, 'The Law'
Boy!!!!!, is it going to get ugly as the last remnants of capitalism inside the US are dismantled/squashed.
"In a separate lecture, Hayek noted that, "I am more convinced than ever that if we ever again are going to have a decent money, it will not come from government: it will be issued by private enterprise, because providing the public with good money which it can trust and use can not only be an extremely profitable business; it imposes on the issuer a discipline to which the government has never been and cannot be subject." - F.A. Hayek, Nobel Prize Winner, The Road to Serfdom
Rogers: America Bordering On Communism
Wednesday, July 15, 2009 9:41 AM
By: Dan Weil
“Karl Marx must be somewhere standing up in his grave cheering.” And why is that? “America has become a socialist and maybe even communist nation in many ways,” Rogers said.
“They’ve been doing the wrong thing for over two years. Nothing has worked. I don’t know why they think this is going to work. This is going to make things worse, too.”
Rogers said that Japan implemented a huge stimulus in the 1990s. “It didn’t work in Japan, and Japan was a creditor nation… It’s not going to work for us, either.”
Treasury Secretary Tim Geithner, former Federal Reserve Chairman Alan Greenspan and White House economic adviser Larry Summers “used to say to the Japanese: ‘You’re doing it wrong. This approach isn’t going to work,’” Rogers said. “We’re doing exactly the same thing.”
Rogers isn’t too happy with the massive monetary easing the Fed has engineered under Chairman Ben Bernanke, either.
“Printing money has been tried many times throughout history in many countries,” he said. “It has never worked in the long term; it has never worked in the medium-term. Occasionally, it has worked in the short term.”
Still, he says, “Printing money is going to lead to serious problems down the road.”
Hear the whole interview: