Columbia Conservative ExaminerAnthony G. MartinA very dangerous thing occurred last Thursday and Friday. The Federal Reserve monetized roughly 40% of the nation's enormous debt. This means that the Fed printed money to flow into the economy in order to cover over 40% of the debt burden the U.S. now carries.
Within days the U.S. government quickly sold off this portion of the debt, creating even more debt, leading Treasury Secretary Timothy Geithner to request from Congress a lifting of the debt ceiling so that we could cover our obligations. That, of course, will create even more debt.
This economic shop talk may sound like gobbledygook to most average citizens, like myself. But the bottom line is that what the Fed did last week will create what is known as 'hyper-inflation.' The cost of goods and services rises so fast that average citizens can't afford the basic essentials of living.
However, the dirty little secret among economists and government bureaucrats is that what's bad for the citizens in this scenario is actually good for the government. In a hyper-inflation scenario the government makes more money due to the tax structure being based upon percentages. Thus, the government makes more money without having to enact an official tax increase.
In a free, Constitutional Republic, a very careful balancing act must be undertaken by government in this situation. The amount of hyper-inflation that benefits government must be carefully balanced with the tolerance level of the public for the ever-rising costs of goods and services, or else the citizens will vote out every politicians who contributed to this dastardly plan.
The salient point here, though, is that we are headed for a round of heavy hyper-inflation. We'd better get set.
But this is not the only troublesome area.
Many economists who closely watch the mortgage and housing markets are saying that we are going to experience yet another major crisis with foreclosures within the next year or two. The reason? Homeowners will owe more on their mortgages than their homes are worth on the market. One economist in particular stated on Fox News that this crisis will not only prevent a recovery but throw the nation back into a deeper recession or even a depression.
Barack Obama has stated, on the record, that the U.S. is 'out of money.'
For once in his life, he told the truth. We are broke. Yet at the worst point in at least 30 years for our economy, Obama and the Democrats wish to pass a 9 trillion-dollar healthcare plan, just so roughly 10 million Americans can have some insurance. And to boot, they want a cap-and-trade plan that will cripple business, decimate jobs, and add $1500-$3000 per year in extra energy costs to the average American family.
There are only 2 ways that the government can cover the costs of such a head-splitting load of debt, on top of the debt we already have. One is to raise taxes. The other is to print more money. Neither solution is acceptable. If inflation is headed through the roof, how will the citizens pay for more taxes? If the government continues to print more money, inflation will only continue to increase.
In short, the Barack Obama plan for the nation is a prescription for chaos. Some would argue we are already sliding into chaos without the healthcare plan or cap & trade. Obama and the Democrats have led us to a point in our history where the very survival of the Republic hangs in the balance. We are edging ever closer to a precipice, and if we fall off of it the Republic will be lost.
Obama and the Democrats who control Congress have given us snake-oil remedies that are leading us closer and closer to that precipice. Perhaps this is a slight hint as to why the citizens who shout at town hall meetings are so passionate.
And perhaps this is why the voices calling for a complete change in Congress, from top to bottom, are growing.
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