QE Worked For The Weimar Republic For A Little While Too | Zero Hedge.
Like the Weimar Republic, the U.S. economy is also struggling and like the Weimar Republic, the U.S. government is absolutely drowning in debt. Unfortunately, the Federal Reserve has decided to adopt the same solution that the Weimar Republic chose. The Federal Reserve is recklessly printing money out of thin air, and in the short-term some positive things have come out of it. But quantitative easing worked for the Weimar Republic for a little while too.
The money printing thing, has a lot in common with a drug addict. It’s so easy to start…
It is really easy to start printing money, but it is incredibly hard to stop. Like any addict, the Fed is promising that they can quit at any time, but this month they refused to even start tapering their money printing a little bit.
As CNBC concludes when the Fed “blinked” and didn’t reduce QE at all…
Faced with a choice of curbing the addiction or providing more hits of the QE drug, in other words, it chose the latter.
Glenn Reynolds at Instapundit summarizes the upcoming financial problems very succintly….
Things that can’t go on forever, won’t. Debt that can’t be repaid, won’t be. Promises that can’t be kept, won’t be.
