Inflation Is A Sinister Beast - If You Uncage It, It Will Decimate The Economy

Wed, 28 May 2008

[An excerpt from a full 35 minute speech]

Richard Fisher, President and CEO of the Federal Reserve Bank of Dallas, speaks at The Commonwealth Club of California about the nation's immense fiscal challenges as well as the threat of severe inflation due to monetization of the nation's debt by the Federal Reserve.

"Throughout history, many nations, when confronted by sizable debts they were unable or unwilling to pay, have seized upon an apparently painless solution to this problem. It's called monetization. Just have the central bank, [which is] the monetary authority, run cash off the printing presses until the debt is repaid, and then promise to be responsible from that point on..." says Fisher.

Fisher continues, "We know, however, from CENTURIES of evidence and countless economies, from ancient Rome to today's Zimbabwe, that running the printing press to pay off today's bills leads to much worse problems later on. The inflation that results from the flood of money into the economy turns out to be far WORSE than the fiscal pain those countries hoped to avoid."

WATCH ENTIRE SPEECH HERE:
http://www.youtube.com/view_play_list?p=DE5A2A4C2BC6E74F&playnext=1&p...

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Category:

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• inflation
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[Panpiper]

It is WAY too late. The last best hope was Ron Paul in the 2008 elections and he was virtually shunned by the parties, the media and the electorate. The functional policy right now IS to inflate the debt to non existence. This will in fact destroy both the debt 'and' the US economy. We are in for an even greater depression than the 30's, and it will not stop until the people wake up. And frankly, my esteem for the public is so low that I do not see that happening for a very long time.

[Kurt6379]

There are a few brave members of congress such as Ron Paul willing to do this yet we fail to elect those willing to support Dr. Paul and stop this disaster before it is to late. I apologize for the multiple posts but consider this topic important.

[campeona5]

RON PAUL AND PETER SCHIFF OR SAY GOODBYE AMERICA!

[herbs814]

scratch Japan. Japan's government debt is twice GDP (IMF data), worse than any other G8 nation. Japan's demographics are even worse than US. Japan's population has too many retirees and too few workers, threatening government pension funds. Japan's population is already declining; birth rates are so low that there are more deaths than births. Immigration is highly restricted, so little chance for immigration to support economy or government budgets.

[RoySC1]

And Ben Bernanke needs to tell this to Congress, and Congress needs to admit to the people that they are a bunch of frauds.

[RoySC1]

The real culprit is fractional reserve banking as currently allowed the FED by our congress. Article I, Section 10, says that no state make anything but gold and silver coin a tender for payment of debt, and this implies that our banking system should be a full reserve system and NOT a fractional reserve system. A full reserve requirement would prevent monetization of debt.

Sorry to say, but this issue is never brought up by the media to educate the public.

[libertyeconomics]

Well Richard Fischer needs to go tell this to Ben Bernanke.

[hyperstagflation]

Move to the creditor nations who do not monetize their debt... China, Japan, South Korea, perhaps even OPEC countries?

[SilverRose09]

but how?

[Kurt6379]

What Mr. Fisher fails to emphasize is that a vote for either party is a vote for slavery. This oligarchy has us so busy fighting amongst ourselves that we fail to see the massive wealth transfer going on right before our eyes from you and I and our children to themselves. Unless we collectively hunt down this oligarchy and destroy it there is no possible chance of survival.