Bush advisor talks about the $800 billion bailout: "Of course we're going to get inflation, that's the whole point of the exercise"

[w¡n9Nµ7 §£@¥€r 123]

http://news.bbc.co.uk/today/hi/today/newsi...000/7749669.stm

Pippa Malmgren, a former adviser to US President George W Bush, and business editor Robert Peston discuss a bail out $100bn bigger than originally announced.

[w¡n9Nµ7 §£@¥€r 123]

Here is a partial transcript of Pippa's comments...

The 700 billion that we did in the past was ... using taxpayer money. This new 800 billion ... is using the federal reserve's balance sheet. So you don't have to use taxpayers money, you just have to print the money.

...

I would argue in fact that printing has begun ... we are printing money, it has begun.

...

We will certainly get inflation, that is the whole point of the exercise. They're gonna conjure up inflation to be an animal to pull you out of the ditch. Once you're out of that ditch, can you contain it again? ... but that doesn't arise until after the deflation has stopped.

...

We're going to have central banks around the world trying to create as much inflation as they can until the deflation is offset.

...

As people begin to lose their jobs ... I wouldn't be too surprised if we end up with low double digit unemployment. And that stops people from spending and that's exactly how you slow consumption down, you force people to tighten their belt by taking their job away.

[Scott & Lai 12]

[w¡n9Nµ7 §£@¥€r 123]

I found the chirpiness in her tone when she said "by taking their job away" chilling.

[w¡n9Nµ7 §£@¥€r 123]

So I'm the only one who thought this was messed up?

[peejay 327]

Here is a partial transcript of Pippa's comments...

The 700 billion that we did in the past was ... using taxpayer money. This new 800 billion ... is using the federal reserve's balance sheet. So you don't have to use taxpayers money, you just have to print the money.

...

I would argue in fact that printing has begun ... we are printing money, it has begun.

...

We will certainly get inflation, that is the whole point of the exercise. They're gonna conjure up inflation to be an animal to pull you out of the ditch. Once you're out of that ditch, can you contain it again? ... but that doesn't arise until after the deflation has stopped.

...

We're going to have central banks around the world trying to create as much inflation as they can until the deflation is offset.

...

As people begin to lose their jobs ... I wouldn't be too surprised if we end up with low double digit unemployment. And that stops people from spending and that's exactly how you slow consumption down, you force people to tighten their belt by taking their job away.

Yeah...we pay our debt off in inflated dollars and then strengthen the dollar afterward. Unemployment is the byproduct of the cycle.

Edited November 28, 2008 by peejay

[Scott & Lai 12]

So I'm the only one who thought this was messed up?

[Ban Hammer 14,577]

I found the chirpiness in her tone when she said "by taking their job away" chilling.

sounds like something hillary would say.

[w¡n9Nµ7 §£@¥€r 123]

Here is a partial transcript of Pippa's comments...

The 700 billion that we did in the past was ... using taxpayer money. This new 800 billion ... is using the federal reserve's balance sheet. So you don't have to use taxpayers money, you just have to print the money.

...

I would argue in fact that printing has begun ... we are printing money, it has begun.

...

We will certainly get inflation, that is the whole point of the exercise. They're gonna conjure up inflation to be an animal to pull you out of the ditch. Once you're out of that ditch, can you contain it again? ... but that doesn't arise until after the deflation has stopped.

...

We're going to have central banks around the world trying to create as much inflation as they can until the deflation is offset.

...

As people begin to lose their jobs ... I wouldn't be too surprised if we end up with low double digit unemployment. And that stops people from spending and that's exactly how you slow consumption down, you force people to tighten their belt by taking their job away.

Oops, my bad- low dougle digit, not mid double digit!

[AlHayatZween 2]

Jeez....

Why is it always that the people who come up w/ these ideas and say these messed-up things (chirpily, no less) who are never in a position where they might lose their job, health insurance, etc...

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