Wednesday, July 14, 2010
Fed Considers Even More Monetary Stimulus Due to Declining Economy
Fed Chairman "Helicopter" Ben Bernanke is seriously considering even more monetary stimulus due to the obviously deteriorating economic situation in the United States which is becoming more and more obvious by the day and, coincidently, I have been forecasting in this blog for nearly a year.
I am reminded here of those old school doctors who believed the way to heal a patient was to bleed the illness out of him.
Yes, these techniques killed George Washington and many others. But did such nonsense ever really make sense except to the most simplistic minds? If you can figure out how bleeding a person can make them healthy there is hope for you. A job at the Fed is waiting.
Does any rational person believe the Federal government alone can stimulate a moribund and declining $14.3 trillion economy with yet another round of stimulus when the previous THREE rounds have not worked?
What is the definition of insanity? Doing the same thing over and over again and expecting a different result? And what type of additional stimulus do Ben and Company have in mind? Interest rates are already at zero percent and the Fed's balance sheet is a mess.
Just hours after I'm writing about my concerns for inflation and skyrocketing interest rates Bernanke makes my original post today seem tame.
Madness. Sheer madness.
Robert J. Abalos, Esq.