What Could Possibly Go Wrong?

Here’s some very scary news

RBS tells clients to prepare for ‘monster’ money-printing by the Federal Reserve
As recovery starts to stall in the US and Europe with echoes of mid-1931, bond experts are once again dusting off a speech by Ben Bernanke given eight years ago as a freshman governor at the Federal Reserve.

Entitled “Deflation: Making Sure It Doesn’t Happen Here”, it is a warfare manual for defeating economic slumps by use of extreme monetary stimulus once interest rates have dropped to zero, and implicitly once governments have spent themselves to near bankruptcy.

The speech is best known for its irreverent one-liner: “The US government has a technology, called a printing press, that allows it to produce as many US dollars as it wishes at essentially no cost.”

This worked so well in the past.

3 Responses to “What Could Possibly Go Wrong?”

1. Syd says:

   June 28, 2010 at 9:21 am

   The mismanagement of the country’s economy could not be worse if policies were being decided on by Obama’s two daughters. What is mind boggling is that Obama continues to have 42% of Americans who strongly support the buffoon. In truth, every Dem in the country should be ashamed of what has happened to their party and what they continue to support.

2. JeffS says:

   June 28, 2010 at 9:49 am

   “The US government has a technology, called a printing press, that allows it to produce as many US dollars as it wishes at essentially no cost.”

   And this works well how? If nothing else, paper money is too stiff to be a decent emergency supply of toilet paper.

3. Cullen says:

   June 28, 2010 at 12:40 pm

   Just let us use our Monopoly money. I mean, it’ll have the same value.