Wednesday, April 06, 2011

Ron Paul: The ‘Big Event’ Has Started

Ron Paul: The 'Big Event' Has Started

"It's huge, and it has started," Paul said, and it may be identified as such within 30 days. "I believe it is the beginning… you and others have been talking about commodity prices going up." The Texas Congressman noted that even the former boss of the Federal Reserve, Alan Greenspan, has warned about out of control inflation.

"A necessary condition for long-term unemployment is low inflation," Greenspan said recently. "If the Fed does its job and stabilizes the inflation rate, that's the maximum that the central bank can do."

Ron Paul: The Big Event Has Started fedpumping

Greenspan failed to mention the fact that when the Federal Reserve prints a new fresh new batch of fiat paper money, it unleashes a devastating round of inflation. Quantitative Easing initiated by the Fed is just that – cranking up the printing machines. It created $600 billion out of thin air to purchase Treasuries and another nearly $300 billion for mortgage-backed securities. Pumping all that money into the economy is an engine for creating inflation.

It won't end with QE2, though. The plan to print gobs of money is open-ended. Late last year, the Fed said it will "regularly review the pace of its securities purchases and the overall size of the asset-purchase program in the light of incoming information and will adjust the program as needed."

As Lew Rockwell noted with tongue firmly planted in cheek, it makes sense to refer to it as QE[n], because the Fed has hinted it will soon begin QE3.

"These various attempts to restore the inebriated happy time have unpredictable and uncontrollable effects," said Rockwell in mid-March. "Bernanke would drive us right into hyperinflation to save his industries. Savers living on pensions just don't have the political clout to stop the money machine," he added.

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