Monday, June 18, 2012



Although I know almost no economics, I believe inflation is solely the result of monetary policy--too much printed money. Every so often the bad monetary policy has horrible real world results. Like in Zimbabwe, once the breadbasket of Southern Africa. Here are two photos that tell a lot of the tale.

Here is a chart of American money supply in the Fed and the Treasury.

Ruh roh.


But wait, that's not all:
"The Federal Reserve purchased 77% of the net increase in the debt by the Federal government in 2011."

Geithner and The Bernank are playing badminton.... with new dollars.
Right, but that is in the area of economics about which I know nothing. So buying back the debt with printed money is worse than just printing too much money? Color me clueless.
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