'6 Reasons for Hyperinflation'

Hat tip to That Mr. G Guy's Blog.

'Your Silver Has Become Dross'

From Godfather Politics:

There was a time in our nation’s history (not long ago) when goods were purchased with gold and silver coins, or paper dollars that could be redeemed in gold and silver (gold and silver certificates representing owner‑ or bank‑held gold and silver). Gold coinage ceased in 1934 by governmental decree. The mints produced the last silver dollars in 1935; silver quarters, half‑dollars, and dimes were discontinued for general circulation in 1965.
The poor usually are the first affected by the debasement of money because they receive the ability to purchase goods when the effects of inflation already have ravaged the economy. The poor may be unemployed or hold low paying jobs with little or no increases in salary. If inflation increases 10‑15% per year and wages only 2‑5%, a reduction in purchasing power results. Of course, those not able to work or dependent on charity, experience an even more grievous condition. The Bible maintains that inflation has its greatest effects on widows and orphans:

“Your silver has become dross, your drink diluted with water. Your rulers are rebels, and companions of thieves; every one loves a bribe, and chases after rewards. They do not defend the orphan, nor does the widow’s plea come before them” (Isaiah 1:22–23).

The very policies instituted by politicians to help the poor created the massive debt that now has turned on the poor and made them even more dependent upon government assistance. To deliver the promised programs of prosperity, the federal government took our nation off the gold standard and inflated the dollar with more and more paper “currency,” since the gold standard prohibited our political leaders from tampering with the money supply.
When the official protector of weights and measures, the civil magistrate, disregards commandments regarding sound money, what stops the general populace from gouging the poor as well?

Isaiah 1:22-23 really hits the nail on the head where our government is concerned.How things change but they really stay the same.

Again,who is the ONLY candidate that supports sound money?Yes,you would be right,Ron Paul.

Bernanke Warns Congress That The Nation Is Headed For A 'Massive Fiscal Cliff'

Ben Bernanke stated the obvious but still doesn't have a clue:

Congress risks taking the economy over a “massive fiscal cliff,” Federal Reserve Chairman Ben Bernanke warned lawmakers on Wednesday.
In remarks that hit Wall Street stock prices, the central bank boss suggested the economy could hit a serious roadblock if Congress allows the Bush tax rates and a payroll tax cut to expire and $1.2 trillion in spending cuts to be implemented simultaneously in January.

“Under current law, on Jan. 1, 2013, there’s going to be a massive fiscal cliff of large spending cuts and tax increases,” Bernanke told the House Financial Services Committee. “I hope that Congress will look at that and figure out ways to achieve the same long-run fiscal improvement without having it all happen at one date.

Here is the problem,Big Ben,we are headed towards a cliff,but spending cuts IS NOT driving us over that cliff.Its SPENDING that's sending us to doomsday.We have a government that not only we,the United States can't afford,but the whole world together can't afford us either.We literally owe more money than their is in the whole wide world.

What Bernanke knows is,that our economy has been made dependent on the Federal government by the Keynesian's and the progressives,and when we cut the budget -and we will either by choice or force- it is going to hurt our economy.So many,from the poorest to the richest receive subsidies from the government in some form,that to eliminate just a small portion of those subsidies would have some adverse effect on our economy.But for us to get fiscally healthy that is a pain we must endure.

On another note,Ben Bernanke also asked Congress to vote on a Constitutional amendment that would make rocks and sticks legal U.S. currency,since Quanative Easing has made our money worth as much.

Alan Greenspan Tells Us What We Already Knew

From CNBC;

The Federal Reserve's massive stimulus program had little impact on the U.S. economy besides weakening the dollar and helping U.S. exports, Federal Reserve Governor Alan Greenspan told CNBC Thursday.

In a blunt critique of his successor, Fed Chairman Ben Bernanke, Greenspan said the $2 trillion in quantative easing over the past two years had done little to loosen credit and boost the economy.

"There is no evidence that huge inflow of money into the system basically worked," Greenspan said in a live interview.

"It obviously had some effect on the exchange rate and the exchange rate was a critical issue in export expansion," he said. "Aside from that, I am ill-aware of anything that really worked. Not only QE2 but QE1."

Greenspan’s comments came as the Fed ended the second installment of its bond-buying program, known as QE2, after spending $600 billion. There were no hints of any more monetary easing—or QE3—to come.

Greenspan said he "would be surprised if there was a QE3"  because it would "continue erosion of the dollar."

I am no Wall Street whiz kid or a high finance expert,but I knew beforehand that printing money and buying your own debt was a terrible idea,and I didn't need Alan Greenspan to tell me that or anyone else,common sense told me that much.