Patrick Semansky, Associated Press
President Barack Obama speaks at a fundraising reception in Baltimore, Tuesday, June 12, 2012.
The Federal Reserve has decided to print $40 billion a month. A rough calculation indicates that this will result in an inflation rate of 0.6 percent per year. This figure does not appear to be too high and one might say that they could actually live with a number like that.
What this does not take into account is the already spiraling inflation rate due to bank bailouts and a world that no longer wants to use the dollar as a reserve currency.
As more and more countries decide to dump the dollar, this will also contribute to inflation. Think, for example, about the real reason behind the destruction of the Gaddafi's government.
The propping up of "too big to fail" is only going to prolong the inevitable, resulting in a bigger crash later. But this lack of reasoning is indicative of the kind of intellectual inbreeding that occurs within both the Democrats and Republicans in Washington. Romney, who understands these finances, wisely hides his money offshore.
No, I am not endorsing Mitt Romney, for neither he or Barack Obama will take the steps necessary to correct what is really wrong in this country. The last president to do that was John F. Kennedy.