Mitt Romney needs to miss a few opportunities to pander and keep his mouth shut about QE because when he talks about how QE won’t help the economy it is off-putting to those of us Republicans who know better. There’s the wonder then, just exactly what he’s going to do for the economy while NGDP has growing at the slowest pace over the last 4 years since Herbert Hover was president, not to mention the current Fed inflation policy that will soak up any gains from supply-side adjustments as soon as demand starts to rise simply from people starting to get back to work. At the very least, he will not be successful in reviving the nearly nonexistent and flagging recovery as long as the current inflation policy remains.
Because of the pandering to the inflation-nutters, I am left with quite a dilemma. The Republican Party is no longer the Party of Reagan and Friedman. The legacies of both legendary figures have been mutilated and left for dead by their own previously ardent followers who now cling to the mistakes of the past in a revival of the economics of the Great Depression without so much as an intellectual justification. And it leaves plenty of room to question Barry Goldwater’s statement about conservatism, that when taken to extreme in the defense of liberty is no vice for I see plenty of vice in consigning future generations to pay for the sins and mistakes of the past by exchanging a little bit more inflation on a temporary basis for ballooning social welfare spending, and lost productivity and prosperity in the future. Nor is there liberty involved in the calculation as this gross abuse of the money monopoly creates a central planner’s paradise and suffocates markets so that items of wealth can be easily confiscated and reallocated without anyone understanding who did it or what happened to them. It was not inflationary policies or supply-side inefficiency that created the tent cities in California, a tragedy so massive that we have seen it only one other time in our history – the last time we had excessively tight money, ultra-low interest rates, a ballooning Federal balance sheet, and tons of reserves just sitting there collecting dust.
There is no way I can support policies that result in what amounts to economic civil warfare on the young people of this country and hardworking Americans who did build that who can do nothing but stand helplessly by and watch as everything they’ve worked for all their lives is lost at the hands of the stealthy and invisible tight-money thief to the cheers of inflation-nutters everywhere. The blame game only goes so far, especially when there’s plenty of evidence of who shares the majority of the blame.
I haven’t left the Republican Party; the Republican Party has left me.