“While the private sector during the bubble years brought U.S. debts to a record 3.7 times the entire
nation’s output, now it’s the public sector that does the borrowing. The Obama Administration is adding
to the accumulated U.S. debt at a suicidal pace – four times faster than the record set just last year. And
America’s central bank hands the borrower a loaded pistol; it is adding bank reserves – which allow the
money supply to expand geometrically – at a 4,500% rate.
That last number is not a typo. It’s an alarm. If the Federal Reserve were a heart patient, the defibrillators
would be on already. If it were a normal bank, it would be closed down immediately.
But neither Karl Helferich nor Ben Bernanke set out to ruin their economies. Central bankers don’t do it
intentionally; they do it inevitably. Not because they want to, but because they have to. Like the Germans
in the ’20s, America has no politically acceptable way to pay her growing debts – except by printing more
money. And now, her leading intellectuals urge her on”
