The effect of the Federal Reserve’s quantitative easing, recently ended, and the European Central bank’s program, just beginning, is that more money is circulating. So far inflation has been absent in the U.S. while the fear of deflation motivated the European bank’s action. But, inflation will appear if GNPs do not grow quickly enough to absorb the newly generated spending power. Inflation, if uncontrolled, steals buying power from the residing currency.
THE DOLLAR SONG
(To the tune of “The Trolley Song,” by Hugh Martin & Ralph Blane, from the 1944 film “Meet me in St. Louis, performed by Judy Garland).
Whisk, whisk, whisk hum the printers.
Crisp, crisp, crisp flow the bills.
Circulating new dollars.
Giving bankers the willies and chills.
Up, up, up rise the prices.
Down, down, down falls your worth.
If this keeps up, my advice is,
Buy a seat on a rocket from earth.
They print a five.
They print a ten.
They’d print a billion dollars
if they had the yen.
Our pockets bulge.
The public spends.
You know where the spiral ends.
Jail those brash counterfeiters.
Sweep those bills off the street.
One thought gives me the jitters
When we learn what they’ve done
and we find that no one
wants our cash.
To the banks we will dash.
To discover a guard at the gate
who will state
“You’re too late,
out of luck.”
That’s the end of the buck.
Lyric © 2015 by Robert S. Steinberg, Esquire
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