Should My Daughter Lead the Fed?

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The other night, I was discussing the Fed’s destructive madness with my wife, when my nine-year-old daughter, Sasha, asked why I was so concerned. I asked her this question: “As the government prints more and more money, what will happen to the value of that money?”

Sasha thought for a second and then said, “It would go down.” She then added, “If they print a bunch of $50 bills, they probably would be worth about $5 and if they print $100 bills, they will become worth $10.” Now, folks, if a little girl who has not been much exposed to economic analysis can quickly come up with the right conclusion, then why can’t a Fed chairman and members of the Obama administration do the same? Of course, the answer is that they do understand, but they have a nice backup strategy when the hammer comes down.

They simply will blame the free market, Paul Krugman and the New York Times will demand price and capital controls, and we will see federal prosecutors go after people why try to get out of the dollar. And it will work, as the public will buy their lies. But at least Krugman and Obama could not fool my nine-year-old daughter.

6:52 am on March 24, 2009