Doing More With Less Since 1972

Tag: The Fed

The Facts and Science of QEII

The newly announced monetization of debt…ERRRRR…devaluation of the currency…ERRRRR…quantitative easing announced by the Federal Reserve on Wednesday has many Americans confused and baffled. What does this really mean for us? After all “facts and science and argument does [sic] not seem to be winning the day” with the collection of hilljacks that is the American people.

Maybe what we really need is an easy to understand analogy to explain in terms that we can relate to.

Let’s say the money supply is a big pile of rich, high-grade manure we are using to to fertilize our gardens. Now, imagine that a big stud horse (the Fed) comes along and, with increasing frequency and volume, adds to our supply of manure. I guess the theory is that we’ll respond by just planting more crops. But how long would it take for us to stop calling this big stinking pile of crap “fertilizer” and start calling it “a big stinking pile of crap”?

Over time, the manure’s value to us would be greatly diminished, and we’ll be lucky if we can load a bunch of it up in wheel barrow and trade it for a loaf of bread from our neighbor. Meanwhile, no one knows who owns the damned horse that keeps adding crap to the pile.

Oversimplified? Maybe so. But it’s pushing the limit of what our government educated brains can handle. Best to leave it to the horse to decide what is best.

‘Splaining the Fed to Star Wars Geeks

Darth Greenspan:

Anakin Skywalker was a tremendously talented young boy discovered by Obi Wan Kenobi, who initially believed that Anakin was the “Chosen One” foretold by a Jedi prophecy to bring balance to the Force and restore harmony to the universe.

Greenspan reminds me more of Mel Brooks in Spaceballs, but it’s a pretty interesting analogy. Read it all if this is the kind of thing than interests you.

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