Obama Administration Fuels Inflation

As people around the world lose confidence in Obama's ability to deal with America's economic crisis, his administration's decision to "turn on the printing presses" and dilute the value of our nation's dollars with more worthless paper has ignited fears of inflation.

Market Watch, March 19, 2009...

Gold rallies 8% as Fed move fuels inflation fears

NEW YORK (MarketWatch) -- Gold futures rallied more than 8% Thursday to end near $960 an ounce, as the Federal Reserve's plans to purchase as much as $1.15 trillion in U.S. bonds and mortgage-backed securities sparked worries of inflation ahead, raising gold's appeal as a hedge against rising prices.

"Looking ahead, we fear inflation. It may be that Dr. Bernankenstein has created a monster beyond his control," said Michael Farr, president of Farr, Miller & Washington, referring to Fed Chairman Ben Bernanke.

The U.S. dollar's losses in the wake of the Fed's move also lifted gold prices, with a weaker greenback raising gold's investment appeal.

As Governor Mark Sanford of South Carolina noted, March 16, 2009...

... the problem of too much debt cannot be solved with more debt. ...if you print enough of anything, you cheapen it. We’re out there running the printing press essentially on a currency and we’re cheapening it. You can go back to the 1920s with what happened to Argentina. You can go back to the time between World War I and World War II when it happened in the Weimar Republic in Germany. When it happened there, you needed a wheelbarrow load of currency to get so much as a loaf of bread.

We’re nearing a very scary tipping point, the point at which the international markets stop buying our debt. ...we get to that point where they stop buying ... currency free falls, and we have inflation and you just undid all the stimulative efforts that have taken place over this last year. ...

Millions of people out of work... trillions of dollars in out-of-control Democrat spending (signed into law by Obama)... and now, the real prospect of inflation and higher prices -- possibly much higher -- when Americans can least afford it!

Is this the CHANGE Americans wanted and Obama promised?

AAR