More Funny Funny Money

Apparently, the Chicoms are displeased with the plans of the messiah SPENDULUS MAXIMUS to spend his planned trillions.  As discussed here, the plan would lead to massive inflation (Remember Jimmy Carter??).  Ironically, the communist country is cautioning the capitalist country about excessive government spending!

This week the Federal Reserve finally made clear what should have been obvious for some time – the only weapon that the Fed is willing to use to fight the economic downturn is a continuing torrent of pure, undiluted, inflation. The announcement should be seen as a game changer that redirects the fury of the financial storm directly onto our shores.

In its statement, the Fed announced its intention to purchase an additional $1 trillion worth of U.S. treasury and agency debt. The purchases, of course, will be made with money created out of thin air through the Fed’s printing presses. Few can doubt that they will persist with these operations until the economy returns to its former health. Whether or not this can ever be accomplished with a printing press alone has never been seriously considered. Bernanke himself admits that we are in uncharted waters, with no map or compass, just simply a hope that more dollars are the answer.

Rather than solving our problems, more inflation will only add to the crisis. Falling asset prices, the credit crunch, declining consumer spending, bankruptcies, foreclosures, and layoffs are all part of the necessary rebalancing of our economy. These wrenching movements, however painful, are the market’s attempts to resolve the serious problems at the root of our bubble economy. Attempts to literally paper-over these problems will lead to disaster.

Now that the Fed has recklessly shown its hand, the mad dash to get out of Treasuries and dollars should not be far off. The more the Fed prints to buy bonds the less the dollar is worth. Holders of our debt (read China and Japan) understand this dynamic. We must expect that they will not only refuse to buy new bonds, but they will look to unload those bonds they already own.

Now, the Chicoms, when not subjecting women to forced abortions and squishing protesters under tanks, are concerned that the inflation brought on by messiah’s policies will turn their huge US Bond investments into steaming piles of excrement.   (Note that Hillary was just over there asking them to buy more-heh heh)  As a result, the Chicoms and the Russkies are recommending that the Dollar be replaced by a new global currency, which we at the Conservative Hideout are referring to as the Franc- Us Dollar-Canadian Dollar, Czech Koruna.  For short, the new currency will be referred to as the F**K.  This new funny money will be sure to cause confusion in the law enforcement community, as asking, “How many dollars for a F**K?” will be asking about the exchange rate!

But I digress.  As for the reaction from our Treasury Secretary, we will fire up the CALL IT SOMETHING ELSE Translation Matrix. Source found here.

Geithner, at the Council on Foreign Relations, said the U.S. is “open” to a headline-grabbing proposal by the governor of the China’s central bank, which was widely reported as being a call for a new global currency to replace the dollar, but which Geithner described as more modest and “evolutionary.”

CALL IT SOMETHING ELSE TRANSLATION: OK, it’s all going to plan.  I just have to make this look like we’re rejecting this, while at the same time not p**sing off our biggest creditor.

“I haven’t read the governor’s proposal. He’s a very thoughtful, very careful distinguished central banker. I generally find him sensible on every issue,” Geithner said, saying that however his interpretation of the proposal was to increase the use of International Monetary Fund’s special drawing rights — shares in the body held by its members — not creating a new currency in the literal sense.

CALL IT SOMETHING ELSE TRANSLATION: SMOOOOOOOCH on the left cheek, SMOOOOOOCH on the right.  Make this guy think we REALLY respect him.  After all, he’s holding $1,000,000,000,000 of our debt that can never be repaid.  OK now, I really need to make sure I minimize this.  We really aren’t making a new currency…yet.  Man! I really have to get one of those teleprompters.

“We’re actually quite open to that suggestion – you should see it as rather evolutionary rather building on the current architecture rather than moving us to global monetary union,” he said.

CALL IT SOMETHING ELSE TRANSLATION: “Evolutionary”  is right.  We do things incrementally here in the Liberal Zone.  If we move too quickly, folks will figure it out.  We’ll just make it look like we’re enhancing the current system.  We’ll get there eventually, just a bit at a time.  Hell, I’m at the freakin’ CFR, what the do you think we’re up to? Global Monetary Union mmmmm (Drools).  Reduce the prosperity of  the US…Lower the citizen’s standard of living…Increase the nanny state… We’re sooo close now, just a few steps more…

There you have it folks.  It many not seem like too much now, but wait.  More will come.  It always does.

Special thanks to the Conservative Beacon for tipping me off to this.  I thank you, though the Translation Matrix needs an overhaul now.