US Action News

The political class attained power via Santa Claus economics, providing gifts to constituents in return for votes. Both parties are guilty. Politicians have conditioned themselves and their constituents to “free-lunch” governance.

For many years Wal-Mart has been famous for their “low prices”, so for the head of Wal-Mart to publicly warn that much higher prices are coming is more than a little alarming.

Today’s debate over federal spending and taxes is just so much fantasy. We’re like a family arguing about redoing the kitchen while the house burns down. It’s an irrelevant, annoying discussion. ~ Rubino

The government is running a $1.6 trillion deficit. Nothing can be done politically to stop this. We are on a runaway train. The main brakes were removed in 1971. The only brake now is that of the bond vigilantes, but the Federal Reserve is the buyer of bonds today, along with Asian central banks. Stockman observed that “the Fed’s QE2 bond purchases have been so massive that it is literally buying Treasury paper in the secondary market almost as fast as new bonds are being issued.”

Since the Fed was created in 1913 the dollar has lost 95% of its value. The Federal Reserve has existed for almost 100 years and it has created depressions, recessions, inflation, and bubbles. This CF&P Foundation video explains the origin of central banking and mentions possible alternatives that will be discussed in subsequent mini-documentaries.

The hyperinflation will come from bank bailouts and ongoing Quantitative Easing (QE or money printing) used to keep the financial system from collapse. Calamities in places like Japan will likely accelerate QE. The Fed will have to make up for the loss of Japan as a buyer of our debt.

Money creation is never proper economic policy. It does not improve or create wealth. Its purpose is to fool citizens. As such, it is a fraud employed by governments to deceive and steal. If high enough, QE results in societal disruption. At worst, it produces hyperinflation, violence and government overthrow.

Because prices are the transmission mechanism for economic allocation and change, shifting value in the purchasing power of the dollar will reflect inter-country changes. In effect, the dollar is their early warning mechanism. It is their canary.

The Ponzi scheme of borrowing printed money is a recipe for disaster. The leftist ‘redistributive’ ideology of Obama and the Democrats will keep America spending more than can ever be repaid.

The US is hurtling toward out-of-control inflation while the political class tries to convince the hoi polloi that inflation is not a problem.