What is it going to take for middle America to demand a stop to the government's confiscation of wealth through the debasing of the dollar? Bernanke's irresponsible use of the printing press as a way to monetize the debt is nothing more than an act of short-term desperation that only exacerbates the real problem.
It is evidently believed that in lieu of unpopular higher taxes they can dupe the public by using this subtle form of debit relief without the taxpaying public becoming any the wiser.
This diversionary tactic is perpetuated by the misrepresentation of the word "one dollar" on the Federal Reserve note that we accept as its real value to be used in trade and commerce. In reality due to the diluted buying power of the dollar, its actual value is more like 10 or 15 cents, if you will relate it to the price of a loaf of bread in the 1940s or 1950s as compared the price of bread today.
True, if you are fortunate enough to still have a high paying job, with all kinds of bonuses, you may be able to offset some of the inflation caused by this dollar dilution. But for average consumers and/or retirees trying to live off their savings, at today's interest rates it spells total financial devastation.
China certainly understands what debit relief is when it is paid back with diluted fiat dollars. It is now using some of those dollars to buy gold.
Germany, too, has recently dug its heels in by refusing to go along with several European banks that are following America's misuse of the printing press to try to solve its burgeoning debt problem.
There are still enough people living in Germany to remember the devastating effects of hyperinflation prior to World War II. Out of desperation, this crisis ultimately allowed the German people to accept the rise in power of a maniacal mad man named Adolf Hitler, as well as their tolerance to his diabolical atrocities against the human race.
If Bernanke and the Fed are allowed to continue this unrealistic practice, it will just prolong the problem, and we will continue to borrow and spend our way into oblivion.
We have an opportunity to replace the current "faux pas change" with "real change" come November 2012.