It’s not too difficult to understand that we are well on our way to a
paradigm shift in America; in fact we’re in the midst of it right now.
The writing is on the wall and can no longer be ignored.
The US government has run up trillions of dollars in debt, and given
the recent debates over the country’s debt ceiling, we can rest assured
that neither Congress or the President will act to curtail spending and
balance the budget. We will continue adding trillions of dollars to the national debt clock until such time that our creditors no longer lend us money.
From the monetary side, the Federal Reserve’s response to this
unprecedented crisis has been to simply “print” more money as is
necessary. On top of the trillions in dollars already printed thus far,
the Fed continues quantitative easing to the tune of about $80 billion
per month. It’s the only arrow left in the Fed’s quiver, because failing
to inject these billions into stock markets and banks will lead to an
almost instant collapse of the U.S. financial system. Unfortunately, the
current strategy is chock full of its own pitfalls, the least of which
being the real possibility of a hyperinflationary environment developing over coming months and years. (more)
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