Tuesday, July 6, 2010

Saving? Forget About It

Here, George Melloan explains something I have been telling my readers for years now.  The Fed is creating new money to finance the federal government's debt.

Whether you like big government or not is only part of the issue.  Just as Melloan explains, the Fed's monetary policy ensures that savers lose and moochers win.

Here and here, I've explained before that you can't really borrow what has not yet been produced.  The Fed and the U.S. Treasury are full of smart people who do understand this simple point.

I'm even willing to bet the BHO and his crew of famous economists are smart enough to understand it.  If they do understand it, that makes those smart people thieves, not just innocent bumblers.  Steal from the savers and give to the moochers.

Ask the leaders of Greece how those policies worked out for them.

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