Wednesday, November 3, 2010

QE2


No, I am neither talking about an European monarch nor a cruise ship.  I am talking about Quantitative Easing. In very simplistic terms, that means "printing money".  The Feds are buying $600 billion (yes, that is "billion" with a "B") in bonds.  When the government spends money, the Treasury prints the money they spend.  The video in the link is calling this a "Global Ponzi Scheme".

Um, last I checked, a Ponzi scheme is illegal.  So if the Feds are heading up a Ponzi scheme, shouldn't they be prosecuted for it like any Ponzi perpetrator?

Additional note:
Remember I said some time ago that there are only 2 ways the government can pay for all the programmes they have -- raise taxes or print more money?  Hmmm....  I know the election is over, yet I will state a common sense principle again: 
Don't spend money you don't have in your hand.
Cut the programmes.

No comments: