"Quantitative Easing" and Other Mistakes

*
*
*




It is my opinion that the currency manipulations which are going on in the world, coupled with the "quantitative easing",the voracious printing of money, unbacked by anything in particular is a bad path, not only for the United States, but for the world in general. Printing extra money which is unbacked simply results in more paper money. The goods that these dollars chase do not multiply. There are more dollars, the supplies are stagnant, and simply cost more dollars, and this is termed inflation. Inflation benefits no one. Inflation means that the money I have saved, actually diminishes in value, because with it, I can buy less. My diminished spending power means I can buy less from the stores in my state, and less from Ireland, England, Canada, Germany, and all the nations which make something which is special or necessary to me. Multiplied with my neighbors, this means that the entire world sees less money,from me, and from everyone else.
Since the dollar's value shrinks next to the Euro, the Yen, and the Canadian dollar, for example, and the value is less stable and may fluctuate rapidly, the dollar becomes a less desirable currency to save and to trade with. After WWII,when Britain's pound sterling lost its position as the World's Reserve Currency, the US Dollar became the desirable currency in which much of the world traded and bought goods. There are already meetings going on in Europe which discuss what the next World Reserve Currency should be following the dollar, which is no longer seen as the stable financial safe haven it once was. If the US dollar loses its status as the World's Reserve currency then the effects cannot be completely foreseen. There may be a US Depression which by virtue of current population, makes the Depression of the 1930s look like a transient job loss.
As unpopular as "austerity plans" are in Europe and other parts of the world, the US must start paying its way. It can't print money to get out of its debt ridden state. The only way out, if one still remains, is to own up to its debts and stop spending like wildfire.
Daniel knew this in 2008. Sometimes I am just the smallest bit relieved that he will not need to live with a sick economy with diminished job opportunities. Of course, his siblings and everyone else will.


This is a famous song from the Civil War Period of the United States.