The Fed's expansion of the monetary base can't help but create inflation, he says

Market analyst Howard Katz of The Gold Speculator places himself firmly in the inflation camp with his article "The Coming Rise in Prices," calling the notion of looming deflation a "balloon full of hot air."

Why? "The real reason for the Federal Reserve is to assist (and provide government support for) the bankers in their creation of money."

And create money they have, Katz says - astronomically so - analyzing a chart from the Fed's St. Louis branch showing that the monetary base "has more than doubled in less than 2 years."

"The argument has been made that this rise in the monetary base will do no harm because it has not yet been turned into money by the nation's banks," Katz says. "The idea that there is a middle ground in which the Fed can create enough money to stimulate the economy but not so much as to cause 'inflation' is more banker gobble-de-gook. These idiots do not even know what the economy is, and when they use the word, the meaning it has is 'the bankers and their associated vested interests' (i.e., the paper aristocracy). So to 'stimulate the economy' means to help the paper aristocracy at the expense of the American working man."



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