Monday, December 22, 2008

The Progressives and the Fed Are Out to Starve You

Howard S. Katz, author of the Paper Aristocracy and soon-to-be-published Wolf in Sheep's Clothing has just written an excellent blog on what the Fed is doing to you. If you aim to retire, you'd better consider putting most of your money into hard assets. With a tripling of the money supply tin foil will be worth a heck of a lot more than $100 bills.

To be fair, this is not a Democratic-Republican thing. The Democrats will starve you but the Republicans have beaten them to it. The Democrats have no intention of undoing the tripling of the money supply, of course.

The left continues to puzzle me. Sam Walton spent his life figuring out ways to cut prices. Lower prices help the poor and working class. In contrast, Wall Street has spent generations figuring out how to get the government to "print" money so that it can have low interest loans for which the rest of the country pays through high prices. But no one on the left seems to criticize Wall Street.

The policy of starving retirees to further the aims of Wall Street began with the Progressives and the establishment of the Fed. Franklin Roosevelt and the New Deal, in the cloak of establishing social programs, re enforced the Fed's power to steal from retirees and workers in order to further the aims of bankers and Wall Street via monetary expansion and inflation.

In the past, idiot leftists like William Greider were taken in by the fatuous claim that inflation helps the poor. Greider's book "Secrets of the Temple" is an encyclopedia of ignorance and self contradiction. It is unfortunate that a writer as talented as Greider lacks common sense. He contradicts himself so often that it seems hard to believe he wasn't aware of it, but never overestimate the common sense of a "progressive". On the one hand he says that inflation helps the poor. On the other, he repeatedly notes that the fresh money loans stimulate Wall Street speculation. I suppose he thinks that the poor speculate on Wall Street.

In any case, Greideresque stupidity has become much more difficult to defend with the bailout. Inflation helps Wall Street and bankers, not the poor. The bailout is being monetized. Inflation that ensues will be due to the monetization of the bailout. Eight decades of lying about the Fed and inflation are drawing to an end.

But our ruling elite, Barack Obama, George Bush, Henry Paulson and the people they represent have decided to inflate to the heavens. As one of my students said they other day, they have decided to suck the life blood out of this country.

But the left continues to puzzle me. They are so wedded to inflation-helps-the-poor that one must wonder: (a) are they stupid? (b) are they tools of the power structure? or (c) are they hoping for a collapse so a latter-day Lenin can step in and turn America into a Soviet Union?

In any case, if you want to retire you are going to need to think about commodities investing. Either that or Swiss Francs.

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