Will QE Infinity Send the US Into Bankruptcy Just Like the Weimar Republic?
"Recently, there has been a great deal of coverage in the media about the fiscal precipice that the United States faces. The President is weary of fighting with Congress over the debt ceiling and believes it should be eliminated. Currently, the United States owes more than $16.3 trillion and is rapidly approaching $20 trillion. Even though the majority of Congress is comprised of fiscally conservative Republicans, nothing has been done about the government's excessive spending and expansion over the past four years. The federal government is the only industry that has been immune to the economic downturn. No one has intervened to stop the United States' rapid descent into insolvency. Historically, the United States has been able to print its way out of difficulty because the US dollar is the world's reserve currency and is used for international trade, primarily in oil. The value of the dollar decreases as more dollars are printed. What the media refuses to discuss is the inflation that quantitative easing has caused. Prior to four years ago, a gallon of gasoline cost less than two dollars, whereas it is now close to four dollars. I don't know what they call it, but I call it inflation, and it is forcing many Americans into foreclosure and insolvency.The majority of individuals do not comprehend what QE1, QE2, The Twist, and now QE3 are and what they do. The term quantitative easing has been used in a careless manner. In essence, the Federal Reserve is printing money and distributing it to its member institutions in order to repurchase US government securities. If printing money was the key to economic success, the government could power up the printing presses, give each citizen $1 million, and everyone in the United States would be wealthy. In actuality, all this does is devalue the currency. As the government prints its way out of debt, Americans are saddled with enormous quantities of debt they did not agree to. Due to these imprudent financial decisions made by a minority, many Americans will file for bankruptcy within the next couple of years.I've always been told that history will repeat itself with the same errors being made, so I should learn from it. In 1919, the Weimar Republic's exchange rate for one U.S. dollar was 12 German marks. Sadly, they believed quantitative easing would lift them out of their financial difficulties, so they began printing German marks to pay off the debt imposed by the Treaty of Versailles. Due to this decision, by December 1923, one U.S. dollar required four trillion German marks. An old Weimar Republic joke stated that if you left a wheelbarrow filled of German marks outside, a thief would steal the wheelbarrow but leave the money behind. As history repeats itself, if quantitative easing did not work for the Weimar Republic in the 1920s, it will not work for the United States today.Numerous Americans are currently concerned about the future of our struggling economy. People who are struggling financially should consult a bankruptcy attorney about filing for bankruptcy. In many cases, delaying action will only make the problem worse. Occasionally, it is simpler to treat the pain and then begin the healing process. In the past, our elders took great pride in being debt-free. According to a recent study, Americans are now so deeply in debt that they are only three weeks away from declaring bankruptcy.
" - https://www.affordablecebu.com/
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"Will QE Infinity Send the US Into Bankruptcy Just Like the Weimar Republic?"
was written by Mary
under the Finance / Wealth
category. It has been read 73
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comments. The article was created on 31 May 2023
and updated on 31 May 2023