Posted: December 8th, 2008 by Militant Libertarian
by John Stossel
If an athlete injures himself and suffers great pain, we’d recognize the shortsightedness of giving him painkillers to keep him going. The pain might be masked, but at the risk of greater injury later.
That’s a good analogy for the inflationary policies now pursued by Washington. These policies may temporarily “stimulate the economy,” but they also disguise and aggravate the underlying problems. We will all pay a serious price.
Policy makers have thrown caution to the wind. Twelve-digit dollar figures are tossed about casually. The other day, after Treasury Secretary Henry Paulson changed course — yet again — and announced that the Federal Reserve would commit $800 billion more in “new loans and debt purchases,” The New York Times reported, “Fed and Treasury officials made it clear that the sky was the limit.”
The total federal commitment to date is over $7 trillion.
The Fed had given up trying to make it easier for banks to lend to each. Now, the Times reports, it “is directly subsidizing lower mortgage rates … doing so by printing unprecedented amounts of money, which would eventually create inflationary pressures if it were to continue unabated.”
Read the rest: http://abcnews.go.com/2020/Story?id=6385348&page=1
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