Can We Afford The Future?

Finance Tid Bits

Can We Afford The Future?

2nd October 2009

I remember saying in one of my posts that the only way our government will cure deflation is with inflation. I had a reader who sent me emails up in arms about that statement. Now just this week the Fed Vice Chairman, Donald Kohn, announced that the Fed may raise interest rates soon while the economy is still weak. His exact words are quoted as "Tightening (monetary policy) while there's still slack in the economy is something that we have to do every time."

Personal Finance It really pains me to see that these financial "gurus" cause a mess in the economy on a global scale from pure greed. Then they flood the economy with funny money leading to deflation and a weakening US dollar. Millions of innocent people lose their jobs and livelihood. Now that they want to play the economy again to the benefit of a few already ridiculously wealthy, they want to pull back money supply and cause inflation.

Where are you and I in this whole thing? I'll tell you where we are folks, on the short side of the stick. The fact is that in an effort to 'save' our economy trillions of dollars were pumped into it and who will foot the bill? The answer is simple, the taxpayer. You and I, our children and most likely their children.

In this game of business, it is never advisable to use your own money. Use someone else's money and folks that someone else is you and I. I could forsee the Fed making such a move and I have mentioned this in previous posts. It remains only a matter of time to see what happens next. What will I do? I would not go borrowing any loans or spending wrecklessly just yet. It looks like it will still be a bumpy ride in 2010.

"I'm quite worried about the fiscal imbalances that we've got and what that might mean in terms of financial crisis ahead." - Bill Gates

Comments (3):

Dave Says: I said it. We the taxpayer must bear the burden of all those trillions and the real slap in the face is that they won't even tell us exactly what that money is being spent on | 10.02.2009 |

Terrence Says: Conspiracies of the rich! Their aim is to keep us poor by making us foot the bill | 10.02.2009 |

Ryda Says: I wasn't aware that the fed are considering raising rates. Oh boy, here we go again.... | 10.02.2009 |

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Can We Afford The Future?

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