S.C. senator points to dangers of bailout

While I disagree with U.S. Sen. Jim DeMint’s, R-S.C., speculation that we’ll “have riots” is the automakers bailout is passed, he has some wise things to say about the eventual economic impact.

“There is no question this will result in inflation,” DeMint said. “The amount of money we’ve borrowed, the amount of money we’ve printed has put us in a more dangerous situation than we’ve ever been in as a country. We may not see the inflation as long as the economy is slow. But, I’ve talked to some economic experts and once the economy starts picking up with so much money in the money supply and so much debt, we’re likely to see very high interest rates and very high inflation rates.”

On the other hand, higher interest rates wouldn’t be a bad thing for people who actually save some money instead of spending it all.

I have little doubt, though, that the automakers bailout will pass, and that the  nationalization of the U.S. economy will continue under an Obama administration.

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