Foreigners have been buyers of 70% of our newly issued debt in the last few years. Does Bernanke really believe that foreigners will be willing to accept 2% interest for 10 years on bonds, while we’re printing trillions of new dollars? The all-out assault on deflation will work. It will work so well, in fact, that it will lead to a crash in the US dollar as foreigners begin to shun the debased currency.

A hyperinflationary bust -- ala Argentina and the Weimer Republic -- is in our future. There’s one thing for sure: Whatever happens, it will take the Fed by surprise. It didn’t see the credit crisis coming and won’t see the inflation tsunami until it washes over us.

Economist Irwin Kellner knows this won’t end well, and said, “While virtually no one is raising prices in today's depressed economy, all this liquidity will soon become an accident looking for a place to happen.”

The last 85 years of allowing our currency to be manipulated by a private bank has produced crisis, failure, and mismanagement. Ron Paul clearly articulates why the Fed has helped destroy the American Dream and needs to be abolished:

"Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy. Though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in monetary policy. The main beneficiaries are those who receive access to artificially inflated money and/or credit before the inflationary effects of the policy impact the entire economy. Federal Reserve policies also benefit big spending politicians who use the inflated currency created by the Fed to hide the true costs of the welfare-warfare state. It is time for Congress to put the interests of the American people ahead of the special interests and their own appetite for big government."

Government in Action

In response to the 9/11 tragedy, we’ve created a behemoth government agency called “Homeland Security” that employs 203,000 people and costs $50.5 billion per year. If we would’ve installed a $39.99 Wal-Mart (WMT) deadbolt lock on every cockpit cabin door on the estimated 20,000 commercial airplanes in the world, it would’ve cost around $800,000, and 9/11 would’ve been averted.

Based on the government’s outstanding record of fiscal management – such as the purchase of $1,200 toilet seats -- we could even assume that it would cost $1,000 per cockpit door and the bill still would’ve been only $20 million. For that small investment, we would have averted 3,000 deaths at the World Trade Center, 4,500 deaths of American soldiers, 30,000 wounded American soldiers, thousands of innocent Iraqi deaths, $850 billion of taxpayer funds spent on the “War on Terror,” and the $50 billion per year we spend on a vast government bureaucracy that’s not making our lives safer or better in any way. Government fails because it’s corrupt, incompetent, mismanaged and self-serving.

We’re about to experience the largest government outlay in the history of our Republic. President-elect Obama and his team of economic masterminds are preparing to borrow-and-spend the country back to prosperity. Mr. Obama wants to create 3 million new jobs in 2009. Considering that there are 1.5 million people unemployed in the construction field, it’s uncertain how he’ll employ all of the cashiers, burger flippers and Wall Street-paper shufflers within the country’s infrastructure.

Obama’s plan to spend $1 trillion to stimulate our economy has the 17,000 lobbyists in Washington DC swarming like voracious locusts over a field of crops. These lobbyists will utilize the $3 billion per year they spend to “influence” policymakers like there’s no tomorrow. "The ever-increasing cost of the yet-to-be-seen stimulus is like chum in the water for lobbyists circling to snap up some taxpayer cash for their clients," said Steve Ellis of Taxpayers for Common Sense, a watchdog group.