Mitt Romney on Federal Reserve Money Printing

If a nation prints more money
like cutting a 16 inch pizza into 12 slices instead of 8
is each slice worth less?

The decline of great powers

is caused by simple economic over extension

Paul Kennedy

What if the pizza shrinks while the number of slices rise?

Credit is a system whereby a person who cannot pay 

gets another person who cannot pay to guarantee that he can pay.

Charles Dickens

Mitt Romney on Federal Reserve Money Printing

"...as the Fed stops buying all the debt that we're issuing
—which they've been doing,
the Fed's buying like three-quarters of the debt that America issues.

Did some stabilize financial markets in the short term

to defend legacies and financial interests, regardless of long term consequences?

...once that's over, he said we're going to have a failed Treasury auction,
interest rates are going to have to go up.

Have American legislators and the Federal Reserve

abused the dollar’s status as a reserve currency

to avoid overtly raising domestic taxation

by covertly taxing US dollar denominated assets like oil

by over-printing money? 

We're living in this borrowed fantasy world,
where the government keeps on borrowing money.

If the government manipulated financial markets to stimulate demand

after too many borrowers acquired too much unsustainable debt, 

did intervention reward some 

who may have contributed to causing the problems in the first place?

You know, we borrow this extra trillion a year,
we wonder who's loaning us the trillion?

If workers, savers and investors

are exposed to capital and earnings confiscation through inflation

as currency inflates

does actual taxation go up or down?

The Chinese aren't loaning us anymore.

The Russians aren't loaning it to us anymore.

If the natural cycle of capitalistic democracy revolves between risk and aversion,

what should happen if government intervention perverts the process

to forestall short term economic pain?

So who's giving us the trillion?

And the answer is we're just making it up.

The Federal Reserve is just taking it and saying, "Here, we're giving it.'

It's just made up money,
and this does not augur well for our economic future.

...it's not easy for people to understand..."

Mitt Romney 

Has the information industry been compromised?

Is the political system broken?

There is an element in the readjustment of our financial system 
more important than currency
more important than gold
and that is the confidence of the people

Franklin D Roosevelt

Did the world’s wealthiest generation forfeit their children’s financial future 

for present prosperity?

Inflation is one form of taxation
that can be imposed without legislation

Milton Friedman
Economic Nobel Laureate

Will socioeconomic disharmonies increase?

Will geopolitical quarrels militarize?

George Hartzman

December 2008