Elections have consequences. The consequence of Obama’s reelection — which should be obvious to anyone with a double-digit IQ — will be hyperinflation and economic ruin. Less obvious is just how close we are already:
Even as U.S. government debt swells to more than $16 trillion, Treasuries and other dollar fixed- income securities will be in short supply next year as the Federal Reserve soaks up almost all the net new bonds.
The government will reduce net sales by $250 billion from the $1.2 trillion of bills, notes and bonds issued in fiscal 2012 ended Sept. 30, a survey of 18 primary dealers found. At the same time, the Fed, in its efforts to boost growth, will add about $45 billion of Treasuries a month to the $40 billion in mortgage debt it’s purchasing, effectively absorbing about 90 percent of net new dollar-denominated fixed-income assets, according to JPMorgan Chase & Co.
Ironically, the depressed state of the economy is the only thing holding back Weimar Republic-style hyperinflation. At this point, there is no way out of Hope & Change that isn’t going to hurt.
On a tip from AC.