Wednesday, 18 March 2009

Zimbabwe Solution: Fed pumps $1.2tn into US economy

Hot on the heels of the Bank of England pumping £75 Billion (small change these days) of counterfeit money into the UK economy our American counsins have decided they can do it biggger and better and today have announced that the Federal Reserve will pump $1.2 Trillion into the US Economy.

Now they are dressing it up as 'buying up government debt' and obfuscating matters further with terms like those current buzz words 'quantitative easing' but essentially this amounts to printing money. Money that has no basis in real world wealth or production. Money that merely devalues every penny in the pocket of the taxpayer. The Zimbabwe solution.

Now I don't think that we will go so far along this road that we will see Zimbabwe style hyper-inflation. The reason being is that for the most part, our dear leaders and their economic advisors probably don't really believe this is a rational economic reaction to the crisis. They are pursuing these policies primarily to be seen to be doing something. In this situation doing something is almost certainly worse than doing nothing.

We need to make the argument to the public: Government is not the answer and does not possess the answer. We don't have the answer. But we do realise the limits of our knowledge and the vast extent of our own ignorance. That is why we need a Libertarian Party


ps. We will hopefully have some news on the Libertarian Party South East soon, and on the back of that, I would like to start getting to grips with some local issues. If you want to contribute to this blog on issues in your part of the region or want to let me know about affairs that need covering, please email me at richard.williams@lpuk.org

1 comment:

TBR said...

Well said Rich.