Friday, November 5, 2010

Inflation To Be Fuled By Printing 1/2 Trillion Dollars

The Fed is now going to print one half a Trillion dollars in order to buy our own bonds!! This is an incredible run of idiocy for our government. But what would you expect from a government led by one.

Printing money to buy our own debt is like you going out and xeroxing a dollar bill until you had enough copies to pay off your mortgage!! It is not going to work.

The Chinese are going to stop buying our bonds, so we will just buy them from ourselves?? If we do this then the Chinese will start selling the bonds they already have to get their money back before the dollar inflates itself into nothing!! If they don't want to buy them now, how do you think they will feel if we inflate the dollar?? Now the bonds will become worthless with the flood of bonds that the Chinese are dumping onto the market. So now we have to sell more bonds to get the same amount of, soon to be worthless, dollars that we were getting before. Its a vicious circle that will drive us to the point of having to pay a wheelbarrow full of dollars for a loaf of bread. The wheel barrel will be worth more than the dollars in it.

But, what can you do to protect yourself from this calamity?

Well, we have already started. We threw the bums out. Or as they say down here in Texas, "We handed them their ass on a platter." The elections show how we feel about the Obama administrations handling of financial matters. But that is just the start.

Now we hold most of the states legislatures and with the recent census, redistricting is coming to the country. The Republicans don't even have to resort to Gerrymandering, they can just do an honest job of redistricting and just the correction of the gerrymandered districts of the Democrats will swing the congress back to a fair distribution.

OK, so that fixes our government for the next 10 years...maybe beyond...if we keep an eye on them...a close eye. But what about your own personal security? What can we, individually, do to protect ourselves from the massive inflation that will engulf this country if we continue to print and inflate the dollar?

Inflation is the process of a currency becoming worth less. The word inflation seems to imply something getting bigger. But that is only the case if that "something" is the wheelbarrow you need to carry the money you need to buy a loaf of bread.

Tomorrow I will give you the plan I am using to protect myself from the coming inflation.

Jim Isbell
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