The Federal Reserve and the road to Hyper-Inflation

Posted on October 18, 2010


It seems to be a foregone conclusion that Fed Chairman Ben Bernanke will push for another round of Quantitative Easing (Printing more money) sometime after Nov. 3rd.    The Fed seems to think that the risk of unleashing future hyper-inflation is better than allowing the markets to take care of  the Nations current financial woes in its own more efficient way.   Those who have, in the past , experienced the horrors of hyper-inflation are not so sure that the largest economy in the world should so cavalierly set out on this dangerous path. Germany is shouting warnings that this quantitative easing is absolute folly. When a Central Bank sets out to create inflation, the result may not be able to be brought under control before tremendous damage is done. Germany has a memory in history of just how horrible hyper-inflation is. When ever I hear these geniuses talk about cranking up the printing presses, I wish it was 1776 again and hubris like this was dealt with by means of tar and feathers.