It's amazing how they can put a label on something and make it sound so smart and good. The big word today was Quantitative Easing part 2. "Quantitative" sounds so scientific and scholarly. "Easing" sounds like it's under control. Nothing radical here. Just a nice and slow easing. Those two words put together make it sound like it's probably a very good idea. People are willing to accept it without too much resistance.
But let's get real. It's nothing more than printing money, pure and simple. To some, maybe printing money sounds like a grand idea. At first glance, it sounds like a winner. And that's why it's so easy to implement.
But what if they came out and said that over the next six months they were going to confiscate 20% of everyone's savings and income? Everyone would be up in arms and there would be a mob with pitchforks on it's way to Washington.
It's time to wake up. That's what's on it's way because of this nice sounding Quantitative Easing. Hopefully it will only make us 20% poorer and it won't get things totally unraveled and spiral into hyperinflation.
So you think prices are under control and we have nothing to worry about? Have you seen prices for commodities the last few months? Wheat going from $4.50 to $7.00. Corn going from $3.50 to $5.50. Cotton going from $0.80 to $1.40. Sugar going from $.015 to $0.30. It's just a matter of a few months before you see these prices coming through with the products you buy at the supermarket.
It's because when you print money faster than the amount of goods and services is growing, you devalue the currency and it takes more of it to buy the same amount of stuff.
How will it feel to save $100,000 and have it in the bank and through this nice sounding QE2, you will only be able buy $80,000 worth of stuff? Will the people realize what's going on? Probably not. They won't blame the smart people at the Fed for doing the smart sounding quantitative easing. They'll instead listen to the politicians start blaming the big bad producers for raising their prices. It will be the greedy, evil businessman who gets the blame for higher prices.
Our only hope is for enough people to understand what's happening and who is responsible for it. Only then can we hope for the real change that has to happen.
Below are a few videos to help try to explain what's going on.
I know some instantly turn off when they see Glen Beck. But don't dismiss the message because you don't like the messenger.