The Fed Votes for Stagflation!

Not a good idea.

The Fed is pumping money into the economy to try and free up credit – to the tune of a trillion dollars. The laws of supply and demand will tell you, and yes the apply even and especially to money, that the more of something there is, the less valuable it becomes.

This move is very short sited and it begs for inflation.

One more time here… drop tax rates across the board by 30%, cut the capital gains tax rates in half, cut government spending in every department by 10%, and then another 10% in two years. You wouldn’t need to keep pumping money into the system if the government itself wasn’t sucking up all of the money and the credit. STOP pumping money into the system! STOP spending like drunk monkeys! The Fed and this administration are beginning to look like teenagers who found the key to the ‘mini-bar’ while mom and dad were out of the room.

I’ve said it before and I’ll say it again, look out for rising inflation, rising interest rates, and rising unemployment. It’s a bad combination. The Chinese are warning us to stop spending because they are worried about the $727 billion they have of our debt. The price of oil hit a high for 2009. When are these people going to wake up from their Keynesian dream and realized that our economy is in the toilet and we are about to get flushed!