Economists love to smack the inflation badminton around, constantly trying to figure out if the trend is inflationary or deflationary. In our estimation, this is an easy one. Inflation has been a sometimes slow and sometimes fast force in the American market since President Nixon unpinned the dollar from gold in the early 1970s.
Certainly, like any market that can be charted on a graph, inflation has – at times – retracted slightly before surging ahead again, but looking at the long term general trend, the course is inevitably onward and upward.
Deflationists sometimes deploy the argument that the government cannot possibly keep printing money forever, weakening the dollar for infinity. They’ll have to stop at some point. To them we say, they’ll stop when the wheels come completely off the economy and the financial breakdown of our way of life is complete. Never underestimate your government’s ability to create money from nothing that is essentially worth nothing. As long as there is paper, green ink, and a printing press, the dollars will keep on surging out the front door, trying to fill the gap left by incredibly injudicious spending.
Trying to stem the tide of red ink incurred by the Fed by continually printing currency is sort of like BP tossing cotton balls at that gusher of an oil well blowout in the Gulf of Mexico. All you’re left with is oily cotton balls and a stupid look on your face. Kind of like…never mind. Mama always said, “If you can’t say anything nice about someone…” We’re pretty sure you know the rest.
As to what happens when a government thinks it can print it’s way out of debt, Google Argentina, Zimbabwe, and the Weimar Republic. Apparently, Obama thinks the United States is above the law of debt. The financial destruction of America is right on course.
The Creating Wealth Team
FreeDigitalPhotos.net / Stuart Miles
