Thomas Massie’s Sounds the Alarms On the US’s Inflationary Experiment
During a recent House committee hearing, Kentucky Congressman Thomas Massie talked about the dangers of using monetary policy to finance the United State’s gargantuan debt.
The US national debt is close to $32 trillion, which is raising concerns about a potential sovereign default crisis. On top of that, the US’s present debt dilemma is already compelling the political class to print money to finance its inordinate debt. Massie recognized this and tweeted, “The Federal Reserve financed $5 trillion of debt by printing money. This resulted in a dilution of the value of money, causing inflation. Printing money out of thin air is poison to an economy.”
The Federal Reserve financed $5 trillion of debt by printing money. This resulted in a dilution of the value of money, causing inflation. Printing money out of thin air is poison to an economy. pic.twitter.com/9TD7Qg84Ux
— Thomas Massie (@RepThomasMassie) March 8, 2023
Generally speaking, inflating the currency is one way to reduce the country’s debt burden. But it comes at a massive cost. Namely, too much monetary emission combined with a massive regulatory state, will create a too much money chasing too few goods dynamic that will end in hyperinflation if it’s left unchecked. Once that occurs, a country’s middle class will be totally decimated, while the recipients of the easy money — the banksters, political class, and politically-connected businesses — profit immensely.
The biggest economic threat to the US is the political class’s fixation with easy money. Any right-wing movement that does not address the Fed’s dangerous monetary policy is only consigning the US to an inflationary disaster further down the line. Future generations should not pay for the mistakes of an irresponsible political class’s actions.