Monday, September 17, 2012

Devaluing Our Dollars

America's money was the reserve currency of the rest of the globe. The strength of US currency could not be questioned. Now, the loose monetary policy of the Federal Reserve has called that into question. Yes, the stock market soared and shareholders were understandably happy about that, but if the gains are marked by fiat dollars, then Ben Bernanke's moves are self-defeating. Inflation is already happening with gasoline prices rising and certain staple foods (like corn) as expensive as they have ever been. I do not want to have to bring a wheelbarrow of Weimar money with me to buy a loaf of bread or be a Zimbabwe billionaire carrying essentially worthless money.

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