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Fed's Decision to Print Dollars is Worse than Raising Taxes

AndrewG avatar
AndrewGBeach Fanatic
631 views
This is how the poor get poorer. Those barely making it now will end up on the streets. Your paycheck from the gov't won't come close to keeping up with inflation. This latest move may devalue the dollar's buying power by another 20%.

Social Security, Welfare & Earned Income Credit checks will be worthless. Funny how poor voters elect a guy who is putting them in shackles but does it in a way that seems benevolent. This is the price every American pays for out of control spending and, likely, will be his legacy.

Printing money is like raising taxes without having to collect them.

Replies

11
scooterbug44 avatar
scooterbug44SoWal Expert
#2
I find it very difficult to believe that the Fed (who has been doing a good job IMO to deal with the recession) is doing something to cause 20% inflation.

Please provide a link to an article or a better explanation.
LuciferSam avatar
LuciferSamBanned
#3
This is how the poor get poorer. Those barely making it now will end up on the streets. Your paycheck from the gov't won't come close to keeping up with inflation. This latest move may devalue the dollar's buying power by another 20%.

Social Security, Welfare & Earned Income Credit checks will be worthless. Funny how poor voters elect a guy who is putting them in shackles but does it in a way that seems benevolent. This is the price every American pays for out of control spending and, likely, will be his legacy.

Printing money is like raising taxes without having to collect them.

I don't recall anybody voting for members of the Fed.
wrobert avatar
wrobertBeach Fanatic
#4
This is how the poor get poorer. Those barely making it now will end up on the streets. Your paycheck from the gov't won't come close to keeping up with inflation. This latest move may devalue the dollar's buying power by another 20%.

Social Security, Welfare & Earned Income Credit checks will be worthless. Funny how poor voters elect a guy who is putting them in shackles but does it in a way that seems benevolent. This is the price every American pays for out of control spending and, likely, will be his legacy.

Printing money is like raising taxes without having to collect them.


They need to do away with EIC and just not take those taxes out until you make over $24K a year. That would keep the dollars moving instead of showing up just once a year where people go and buy televisions and cars they do not need instead of raising their standard of living year round.
30ashopper avatar
30ashopperSoWal Insider
#5
I find it very difficult to believe that the Fed (who has been doing a good job IMO to deal with the recession) is doing something to cause 20% inflation.

Please provide a link to an article or a better explanation.

There is little inflation currently. The whole point of monetary easing is to prevent deflation, which is a real concern right now.

Down the road all this money printing could blow up in our faces, but it hasn't happened yet.
seal avatar
sealBeach Lover
#7
Andrew,

Great thread; I agree with your comments.

QE2 will blow up in the Fed's face. Markets(the people) will overpower the Fed's moves; it just may take a while.

A few informational links:

1. Mish's Global Economic Trend Analysis: Will Quantitative Easing Spur Inflation? Job Creation? Credit Expansion? Do Anything?

2. Mish's Global Economic Trend Analysis: Inflation: What the heck is it?

3. Mish's Global Economic Trend Analysis: Why does fiat money seemingly work ?

Understanding what the Fed is doing to our money is key to understanding what is really going on in the economy. It is the hub into which the spokes fit. Take the time to learn about the Fed and fiat money.

Just to get the point across.......
YouTube - The Matrix "The choice of the the truth"
AndrewG avatar
AndrewGBeach FanaticAuthor
#9
This is exactly what I mean. It makes no sense. Didn't Walmart just see 4% annual inflation on their products last month? Where is the deflation and what makes them think this will spark job creation?

Funny how people understand these things better in the form of a cartoon.

So what are you doing to preserve wealth? If inflation hits real estate could be a good way to go.
Matt J avatar
Matt JSWGB
#10
This is exactly what I mean. It makes no sense. Didn't Walmart just see 4% annual inflation on their products last month? Where is the deflation and what makes them think this will spark job creation?

Funny how people understand these things better in the form of a cartoon.

So what are you doing to preserve wealth? If inflation hits real estate could be a good way to go.

It probably sparks hiring in the credit card and banking industries, which is clearly the only industry the FED is concerned with.
Lynnie avatar
LynnieSoWal Insider
#11
:lol:

Let's just hope The Goldman Sachs gives The Bernanke a good price. Over the last year, $390B moved into bonds. We typically have $50B in bonds. When rates start to increase, there is going to be massive movement out of the presently lower yielding bonds.
futurebeachbum avatar
futurebeachbumBeach Fanatic
#12
Funny how people understand these things better in the form of a cartoon.

So what are you doing to preserve wealth? If inflation hits real estate could be a good way to go.

Real Estate with a fixed rate mortgage is what you want during periods of inflation.

Interest only and variable rates can be pretty rough when inflation is high.

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