Friday, October 3, 2008

Congress just gave you a pay cut

Today's bailout means that everyone in this nation just took a pay cut thanks to the inflation which will follow the bailout. When more money is printed to cover debts, inflation occurs because the scarcity of money decreases. I was physically ill listening to Nancy Pelosi cackling at the press conference, like a school girl who just got dad's credit card. I need to sleep and dream of a fiscally conservative country, since I won't be waking up in one.

1 comment:

Jerng said...

I agree. I was thinking immediately that excess dollar supply is just going to devalue your currency, once the ECB and other Asian governments start buying those treasury notes. I'm an amateur macroeconomist, but what seems likely to happen after that is... a 6-12 month slowdown in the US, as purchasing power diminishes, coupled with no equivalent effect in the world at large... followed by a 12-24 month period of stagflation following the offset of the War on Iraq (assuming that the Democrats win the next GA) coupled by grumbling in ranks, as the GOP blames the left for the slowdown... which the left can only counter successfully with Obama-esque rhetoric and resolve: therein presenting a huge opportunity to the Democrats to undertake a war on economic inequality within the USA - failure to achieve this, resulting in McCain taking over in 2016... haha... good luck...