November 9, 2010
Obama following Lenin's Inflation Strategy?
I've been wondering when B.O. would get around to the inflation portion of their program for wealth re-distribution in America. In the short run, an unhealthy dose of inflation seems to be the only cure for the raft of American homeowners languishing underwater on homes that are no longer worth what's owed on them.
After pitting the unions against the capitalists and bankers, Obama continues to draw his economic policies directly from Lenin's playbook, albeit indirectly so, with the policy imprimatur lifted right out of Keynes, citing Lenin in paraphrase:
Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily, and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become 'profiteers', who are the object of the hatred of the bourgeoisie, whom the inflation has impoverished, not less than of the proletariat. As the inflation proceeds, and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.
- The Economic Consequences of the Peace (p.235-6) J.M. Keynes
Hasn't this been Obama's economic approach in a nutshell? From the vilification of bankers and Wall Street, to the undermining of the relationship between homeowners and mortgage companies, to the surreptitious, nearly symbiotic relationship with the most underhanded currency speculator in history, George Soros, our nation has been under constant economic attack since January 21, 2009.
Again, in the short run, inflation reflates the lost value in the housing market. And in the long run, our country morphs into Venezuela and then, in its last gasps, Cuba.
Ralph Alter is a regular contributor to American Thinker.