After three years of working to keep inflation in check, the Federal Reserve is now changing course and setting out a policy to raise inflation above its current target of around 2 percent.
Well guess what? Inflation is already here. Just ask anyone buying groceries. And this inflation is a direct result of Federal Reserve polices of quantitative easing (QE) — in other words, printing money.
Last week William Dudley, president of the New York Federal Reserve, said current levels of inflation are a problem because, “it means slower nominal income growth.” So be prepared for Fed Chairman Ben Bernanke to fire up the presses and begin QE in earnest.
What will be the result? Everyone will become billionaires. But that isn’t good. Just look back at Weimar Germany and see what holding billion dollar notes got them.
The money creators are desperate, but things have gotten out of control. They’re flailing, and the economy is failing.