Tuesday, December 16, 2008

The sky is falling...

The Fed lowered the interest rate to zero. This has never occurred in the United States. It occurred in Japan. It didn't work out well for them.

Check out this quote:

“The Fed is sending a message that it will print money to an unlimited extent until it starts to see the economy expanding,” William Poole, former president of the St. Louis Fed and now a senior fellow at the Cato Institute in Washington, said in an interview with Bloomberg Television."

"Printing money to an unlimited extent" can only lead to inflation. I'm not an economic expert, but you don't have to be to figure that out. It's one of the most basic tenets of economics. As anything, money included, increases in availability, that thing's value goes down. Otherwise we could eliminate poverty by printing money.

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