World War C

The most important news last week was not the election results, since all that was accomplished was to replace a few Welfare Socialists with Warfare Socialists. The big news was from the economic master of the universe, Dr. Ben Bernanke, by whom the next round of quantitative easing was announced. QE2 is the latest euphemism for the monetary fraud of inflation, and will have lasting effects that will haunt our economic well-being for many years to come. It is economic warfare and will likely mark the beginning of the next world war, World War C, the currency war.

In this economic disaster, every nation wants to increase their own exports and minimize their imports. Obviously this is not possible for every country, and overlooks the fact that the division of labor inherent in free trade makes the whole world, both rich and poor, much better off. But if a country’s currency were to be devalued relative to the rest of the world, that country’s exports would tend to increase for a time due to their price advantage. Of course, when labor and material prices adjust to the presence of newly created unearned money, the advantage would disappear, but QE3 would fix that, and on it goes. So, when one rather large country devalues its own currency (and make no mistake, that’s what QE2 does), then every other country will try to follow suit so that their own currency is equally devalued. Central bankers must believe that if their currency is circling the toilet faster than the others, they win.

Obviously, this tactic also cannot work. So, round two will begin with increasing accusations of currency manipulation and price fixing, leading up to trade restrictions through tariffs and quotas. Then as free trade becomes a distant dream, regional shortages of commodities will appear, and so will the shooting part of this war.

When trade restrictions are proposed, you should think “this means increasing poverty”. When the drums of war begin, you should think “this means death to millions of innocent people”.

Stop the Central Banksters by using only gold and silver coins as money.