January 18, 2008
Hot Issues - Under the Radar
There are some very controversial happenings in our government being lost by all the presidential election hoopla! Wholesale inflation rate hike highest in 26 years threatens 70’s type stagflation. Former Republican politician indicted for aiding al-Queda. Porker of the Month - Ohio’s Hobson (R) demonstrates some Republicans don’t care about deficits and debt, just a nice crapper for possible visiting Idaho Senators. FBI to send American records overseas?
Inflation: It is an odd thing for our government to exclude food and energy prices, enormous inflation items over the last 18 months, from the inflation indexes. However, the policy experts and wall street could not ignore the largest hike in wholesale inflation in 26 years as announced day before yesterday. While Wall Street's estimates of a Federal Reserve interest rate drop of 75 points (3/4 of 1%) has gone from 60% to 40% on the news reflecting the bind inflation puts the Federal Reserve in, Fed Chief Bernanke sought relief from Congress today in the form of advising fast economic stimulus. Just don't increase the deficit he warned.
It is not a good time to be Bernanke. He has two tools to use in managing the economy. Interest rates and cash availability to banks. And he has two mandates: maintain economic growth and keep inflation in check. The problem is, whenever the Federal Reserve uses its tools, it benefits one mandate positively and the other negatively. In other words, cutting interest rates may stimulate the economy, but, increases inflation potential as well, and vice versa. There is overwhelming pressure on the Federal Reserve to stimulate the economy with interest rate cuts and increase liquidity (more cash available for loans to the banks), but, doing so when inflation statistics are increasing, puts Bernanke in a possible no-win situation.
Inflation harms the non-wealthy by making them even less wealthy as prices go up faster than wages, effectively cutting their income as they try to maintain their current quality of living. Effectively, it means millions of Americans must reduce their quality of life choices in order to keep afloat financially, and for millions of others on the brink, it could mean bankruptcy. The time has come for the Federal Reserve to quit hiding energy and food price inflation behind the curtain of volatility and take them into account. Because their trend is no longer volatile, but, inflationary for most American households.
And in taking them into account, the Federal Reserve will be forced to take its head out of the sand and recognize that it is not simply a decline in economic growth they must deal with, but, inflation too; called stagflation which, requires a subtle but distinctly different approach and focus by the Federal Reserve. Bernanke has said, rate cuts today won't circulate through the economy for between 6 and 12 months. And that is when the cuts will have their inflationary effect. Can the Federal Reserve be so confident that inflation will remain benign 6 to 12 months out in light of current data? Can they be so confident they aren't now fueling an inflation head of steam a year from now?
The bet is obviously that the cuts and stimulus now can rescue the economy in time to stop worrying about economic activity, and if need be, deal with the inflation when, and if, it rears its ugly head, robbing wage earners of purchasing power. There is a credit card industry bubble however, waiting in the wings. Should it burst next summer or fall, another banking liquidity and economic activity drop could easily result, and if inflation data is rolling in strong, we will have arrived at stagflation, and Federal Reserve Bank Governor's worst nightmare.
Former politician indicted: Mark Deli Siljander, a Reagan era Republican Representative, whose rhetoric and issue positions made him welcome to the new Republican right wing of the party, has been indicted on 42 counts, to include:
money laundering, conspiracy and obstructing justice for allegedly lying about lobbying senators on behalf of an Islamic charity that authorities said was secretly sending funds to terrorists.
A 42-count indictment, unsealed in U.S. District Court in Kansas City, Mo., accuses the Islamic American Relief Agency of paying Siljander $50,000 for the lobbying - money that turned out to be stolen from the U.S. Agency for International Development.
What made this Republican so electable in Michigan and endearing to the GOP? Interestingly, some of the same views that made him a facilitator for al-Queda and radical Islamic fundamentalism.
"I'm part of the silent majority that was heard Nov. 4 [when President Reagan was elected]," says Siljander. "My support comes from morally concerned citizens who are sick of the situation in this country." Siljander pledges to battle the Equal Rights Amendment, pornography, abortion, school busing and "big spending." He will champion the neutron bomb, the MX missile and prayer in public schools.What made him allegedly a facilitator for al-Queda, also made him a prime candidate for the Republican religious right wing of the party. Fundamentalist Christians and Muslims appear to have some basic views in common regarding American society.
Porker of the Month:: Since Senator Larry Craig refuses to step down from office, it is possible he may travel in Ohio on his Senatorial duties. Perhaps that is why Rep. David Hobson (R) of Ohio added $300,000 in pork spending for a hoity toity "comfort station" in Ohio. Citizens Against Government Waste have showcased Hobson for the month of January for adding
a $300,000 Economic Development Initiative (EDI) grant for the Springfield Arts Council for “construction of Phase III of the west plaza comfort station” in the Fiscal 2008 Departments of Transportation, and Housing and Urban Development (THUD), and Related Agencies portion of the omnibus appropriations bill. EDI grants were originally intended to be competitively awarded to projects in low and moderate-income communities, but the program has evolved into a notorious pork warehouse.
They talk like fiscal conservatives but act like Democrats in Republican rhetoric.
FBI take records overseas? ZDNet covers this story regarding discussions about establishing an international biometric database for tracking down the world's most wanted criminals and terrorists. Is Big Brother going Global? If there were a conspiracy to create a global monitoring center for all human beings which left no place on earth a safe refuge from the prying surveillance of the new world order, this would be the way it would begin. Who, afterall, would object to an international database sharing of criminal and suspect records to combat terrorism? There simply is no more innocuous way to establish global Big Brother surveillance, referring of course, to George Orwell's prophetic and immensely popular book in its day, "1984".
Expanding such a database and surveillance network in the future to include all manner of other types of suspects including political and revolutionary like our founding fathers, would be an administrative piece of cake. And therein lies the subtle but, immensely important danger of proceeding without appropriate checks and balances and oversight. But, what international organization or body would oversee such a international network of policing and surveillance? Is it time to create an International Supreme Court to oversee individual nation's use of such a global surveillance and tracking network? Scary questions, indeed.
Posted by David R. Remer at January 18, 2008 05:35 AMExpanding such a database and surveillance network in the future to include all manner of other types of suspects including political and revolutionary like our founding fathers, would be an administrative piece of cake.
And it is already being done as I noted in my Real ID article with the NO-FLY lists. Political opponents are not allowed to fly because of their publicly stated views against the current administration.
Posted by: Rhinehold at January 18, 2008 06:41 AMIf we are interested in real stimulus, adoption of the FairTax would be the quickest method.
Eighty economists, including Nobel Laureate Vernon L. Smith, wrote an open letter to the President, the Congress, and the American people, stating that the FairTax would boost the United States economy. According to the National Bureau of Economic Research and Americans For Fair Taxation, GDP would increase almost 10.5% in the year after the FairTax goes into effect. In addition, the incentive to work would increase by as much as 20%, the economy’s capital stock would increase by 42%, labor supply by 4%, output by 12%, and real wage rate by 8%. A study in 2007 by the Beacon Hill Institute stated that within five years real GDP would increase 10.7% over the current system, domestic investment by 86.3%, capital stock by 9.3%, employment by 9.9%, real wages by 10.2%, and consumption by 1.8%. Further, studies of the FairTax at Boston University and Rice University suggest the FairTax will bring long-term interest rates down by as much as one third. As falling tax compliance costs lower production costs, exports would increase by 26% initially and remain more than 13% above present levels. According to Professor Dale Jorgenson of Harvard University’s Economics Department, revenues to Social Security and Medicare would double as the size of the economy doubles within 15 years after passage of the FairTax.Global corporations consider local tax structures when making planning and capital investment decisions. Lower corporate tax rates and favorable transfer pricing regulations can induce higher corporate investment in a given locality. The United States currently has the highest combined statutory corporate income tax rate among OECD countries. Bill Archer, former head of the House Ways and Means Committee, asked Princeton University Econometrics to survey 500 European and Asian companies regarding the impact on their business decisions if the United States enacted the FairTax. 400 of those companies stated they would build their next plant in the United States, and 100 companies said they would move their corporate headquarters to the United States. In addition, the U.S. is currently the only one of the 30 OECD countries with no border adjustment element in its tax system.[59] Proponents state that because the FairTax is automatically border adjustable, the 17% competitive advantage, on average, of foreign producers would be eliminated, immediately boosting U.S. competitiveness overseas and at home.
I know you and d.a.n. are opposed to this tax overhaul for other reasons, but it would boost the economy by expanding the tax base to include foreign visitors and illegal aliens, bring in foreign companies into the US to create new jobs and lower our trade deficit…
I in now way intend to divert the topic away from your article, we can get heated on the topic, so I am only going to talk about the economic stimulus that this change in our tax code would provide, knowing that there is opposition (on shaky grounds IMO) of the plan on other issues…
The problem is any other way to ‘boost the economy’ like deficit spending while we are bankrupt, rebate checks and lower interest rates are not going to fix the issue, only give us temporary relief. We need long term solutions…
Posted by: Rhinehold at January 18, 2008 06:50 AMRhinehold, you must be referring to the next Recession, not this one. There is no way our tax system is going to be overhauled in time to positively or negatively affect this slow down in economic growth.
So, its a moot point. One acknowledged by Bernanke yesterday before Congress, as well, not that you would put much stock in the Fed Reserve chairman. But, he was accurate that tax reform could not come in time to affect this slow down.
Posted by: David R. Remer at January 18, 2008 08:55 AMRhinehold, this is the first I have heard of this political no fly list, and I am interested. Could you provide a key phrase I might use to find articles on the topic on Google, or a linked source if handy? Thanks.
Posted by: David R. Remer at January 18, 2008 08:56 AMDavid the CCR link in Rhineholds “Papers Please” post has information on this issue.
Posted by: j2t2 at January 18, 2008 09:54 AMDavid,
http://www.inthesetimes.com/issue/27/02/feature3.shtml has some information, while the article is from 2002, the fact that it occurred (and I don’t know if it is still occuring or not) it is an example of how this can AND WILL be abused by questionable government.
Posted by: Rhinehold at January 18, 2008 11:01 AMDavid,
Perhaps you are right for staving off the current Recession, but the temporary measures may provide enough time to enact a necessary overhaul. Any real fix is going to take a year or two, only temporary relief is going to come soon enough to stave off the worst of this looming recession.
Posted by: Rhinehold at January 18, 2008 11:12 AMAccording to the National Bureau of Economic Research and Americans For Fair Taxation, GDP would increase almost 10.5% in the year after the FairTax goes into effect. In addition, the incentive to work would increase by as much as 20%
Is “fair” like “clean air act” and “leave no child behind”?? This admin is famous for its dogged misuse of language to divert attention from what is really going on…
and a 20% incentive to work? Come on…it’ll only mean we’ll need 3 jobs instead of 2 to make ends meet…this “fair” tax falls onerously on the poor and the middle class…it is anything but progressive and in face is regressive.
Nothing “fair” about it unless you’re ranking it on a scale of horrible, fair, onerous, good, not so bad…let’s stop twisting semantics and tell the truth for a change.
Posted by: Rachel at January 18, 2008 02:11 PMRachel, thanks, but this article’s topic is not the National Sales Tax plan, regardless of it being called the ‘unFair’ or ‘Fair’ tax plan. That topic will surely come up in future articles.
Rhinehold brought it up in reference to a topic included in this article. But, as it turns out, the reference doesn’t bear on the economic stimulus being discussed in the short term by Bernanke, Congress, and now the White House.
Posted by: David R. Remer at January 18, 2008 02:28 PMDavid,
That’s a good list. I was unaware of the “Hobson crapper” appropriation, and the FBI “crapper list”. (Might as well call it a crapper list, although having my info go down the crapper would be preferable)
I must say however that the economy is numero uno, and IMO the establishment just ain’t gettin’ it!
For decades we’ve been headed further and further into the “negative personal savings zone”, and it’s been seen as no big deal. Why wouldn’t it be? If the government can just keep printing money, and we keep getting new plastic in the mail every week, HELLS BELLS, just keep spending.
9-11 happened ………… well hell, support America, just go spend more!
US automakers are in trouble ……….. oh hell, lets give tax breaks for buying SUV’s!
I could go on and on but I’d basically say nothing I haven’t read from you over the past few years. Debt, both personal and FED, are sinking the boat!
Of course it’s easy now to just blame the current downturn on the subprime mess, well bullshit! That’s just a symptom, as is “easy credit” of any shape or form, not the illness itself.
The real problem is a runaway “robber-baron” economy! The continual increase in disparity between the rich and the poor has shifted MOST of the middle class into a true “working poor” category.
Sure some of it can be blamed on “keeping up with the Joneses” and the desire for the newest “bobbles-n-beads”, but honestly if median income is around $45,000 a year(and I think that’s pretty close)we’re in deep doo-doo.
I see a “caste” society on the horizon. Or maybe it’s already here!
The saddest thing about the current downturn in the economy is that we’ve all nearly forgotten about those bleeding and dieing in Afghanistan and Iraq. Damn sad!
Posted by: KansasDem at January 18, 2008 03:54 PMDavid:
Just don’t increase the deficit he warned.
Bernanke’s ok was to increase the deficit short term but not increase the long term structural deficit.
Posted by: Craig Holmes at January 18, 2008 11:13 PMDavid wrote: … news reflecting the bind inflation puts the Federal Reserve in, Fed Chief Bernanke sought relief from Congress today in the form of advising fast economic stimulus. Just don’t increase the deficit he warned.TRANSLATION: Don’t borrow the money. Instead, print some more money.
Never mind that the U.S. Dollar has fallen drastically against all major currencies for 5+ years.
Sounds like trying to put out a fire by throwing gasoline on it?
The problem is not one thing, but these many long-term problems, growing in number and severity for 30+ years, and more short-term solutions while ignoring the long-term problems is why we are in trouble now.
Rhinehold wrote: I know you and d.a.n are opposed to this tax overhaul for other reasons,Not true. We’re opposed to any change that will make the current regressive tax system more regressive, and there is a better, quicker, fairer, simpler solution that could be implemented immediately if Congress truly wanted to make the tax system fair and simple. But they don’t. The complexity is by design to make the tax system regressive, which is how Warren Buffet can pay 17.7% on $46 Million and his secretary paid 30% on a $46K income (year 2006).
David R. Remer wrote: They talk like fiscal conservatives but act like Democrats in Republican rhetoric.And the pork-happy incumbents in the Do-Nothing Congress will reward themselves for all of it next month with another raise (like the 9 raises between 1997 and 2007).
And how about the pork-happy James Clyburn (D-S.C.) who got a porker-award of the month (Nov-2007) for $3 Million for “First Tee”, a golf program?
Also, First Tee had previously received $7.5 Million in earmarks in 2003, and another $1 Million from the Dept. Of Education, and another $2 Million from the Dept. Of Justice.
All while our troops go without armor, adequate medical care, and promised benefits, and 1 out of every homeless person is a veteran.
Yet, voters continue to reward the bought-and-paid-for, FOR-SALE, look-the-other-way, corrupt incumbent politicians in the two-party duopoly in Congress with 96.5% seat-retention rates.
Craig Holmes wrote: Bernanke’s ok was to increase the deficit short term but not increase the long term structural deficit.The Federal Reserve is addicted to excessive money printing.
But it is not hard to understand why, when you consider how it benefits them.
It is not hard to understand why they are now recommending a stimulous package that will probably mean more money-printing.
It’s like playing the game of Monopoly, in which one person (i.e. the privately owned Federal Reserve Bank) can print all the money they want.
Before too long, the Bank owns everything, and everyone else is broke or deep in-debt to the Bank.
DOH!
Also, with every new bank loan, 89% of each loan is new money created out of thin air (a 9 to 1 ratio).
And the other 9% comes from depositers.
And guess who receives the interest on that loan? The bank of course.
So, it is no wonder that banks want to loan money to everyone under the sun (including your dog, cat, and children; literally).
This is why the U.S. mail is full of credit card applications.
This is why there’s a credit crisis.
This is why the U.S. Dollar is falling against all major currencies.
We have had constant and incessant inflation since 1950 (see below), which is why a 1950 Dollar is now worth 11 cents.
Yet, few question any of this, and many are eager to get their rebate checks.
Rhinehold wrote:The problem is any other way to ‘boost the economy’ like deficit spending while we are bankrupt, rebate checks and lower interest rates are not going to fix the issue, only give us temporary relief. We need long term solutions…Absolutely.
Such sort-sightedness is why we have numerous long-term problems that can not be fixed with more short-term solutions.
____INFLATION_______
CPI (CPI=100 for year 1967)
650 + - - - - - - - - -X
600 + - - - - - - - - -X
550 + - - - - - - - - -X
500 + - - - - - - - - X
450 + - - - - - - - - X
400 + - - - - - - - - X
350 + - - - - - - - -X
300 + - - - - - - - X
250 + - - - - - - - X
200 + - - - - - - -X
150 + - - - - - - -X
100 + - - - - - -X
050 +XXXXXXXX
000 +_______________YEAR
1 1 1 1 1 1 1 1 1 1 2 2
8 8 8 8 8 9 9 9 9 9 0 0
0 2 4 6 8 0 2 4 6 8 0 2
0 0 0 0 0 0 0 0 0 0 0 0
David wrote: It is not a good time to be Bernanke.And it will get worse before it gets better by trying to put out the fire by throwing more gasoline on it.
Obama is talking about rebates ($250 now, and maybe $250 later).
Nothing like bribing the voters with their own tax dollars, eh?
John McCain and Ron Paul are the only politicians recommending spending cuts.
Bush wants his regressive tax system made permanent.
None of that is enough.
More long-term solutions are needed.
Yet, the federal government refuses to address these 10 regressive/oppressive sysetms which (by design) have been hammering the middle-income-group for 30+ years:
- (01) Debt
- (02) Inflation
- (03) Government FOR-SALE
- (04) Regressive Taxation
- (05) Illegal Immigration
- (06) Corruption, graft, pork-barrel, waste, government bloat
- (07) 7 wars in 90 years (some unnecessary)
- (08) Election problems; two-party duopoly blocking access to ballots; voter fraud, etc.
- (09) Lawlessness; increasing crime rates
- (10) Healthcare mistakes killing 195,000 per year
Who ever becomes president won’t be effective if they are saddled with the same do-nothing, corrupt Congress that enjoys 95%-to-99% re-election rates.
At any rate, the voters will have the government that they deserve, which is the lone reason for concern.
David wrote: … news reflecting the bind inflation puts the Federal Reserve in, Fed Chief Bernanke sought relief from Congress today in the form of advising fast economic stimulus. Just don’t increase the deficit he warned.TRANSLATION: Don’t borrow the money. Instead, print some more money.
Never mind that the U.S. Dollar has fallen drastically against all major currencies for 5+ years.
Sounds like trying to put out a fire by throwing gasoline on it?
The problem is not one thing, but these many long-term problems, growing in number and severity for 30+ years, and more short-term solutions while ignoring the long-term problems is why we are in trouble now.
Rhinehold wrote: I know you and d.a.n are opposed to this tax overhaul for other reasons,Not true. We’re opposed to any change that will make the current regressive tax system more regressive, and there is a better, quicker, fairer, simpler solution that could be implemented immediately if Congress truly wanted to make the tax system fair and simple. But they don’t. The complexity is by design to make the tax system regressive, which is how Warren Buffet can pay 17.7% on $46 Million and his secretary paid 30% on a $46K income (year 2006).
David R. Remer wrote: They talk like fiscal conservatives but act like Democrats in Republican rhetoric.And the pork-happy incumbents in the Do-Nothing Congress will reward themselves for all of it next month with another raise (www.congresslink.org/print_basics_pay.htm ; like their 9 raises between 1997 and 2007).
And how about the pork-happy James Clyburn (D-S.C.) who got a porker-award of the month (Nov-2007) for $3 Million for “First Tee”, a golf program?
Also, First Tee had previously received $7.5 Million in earmarks in 2003, and another $1 Million from the Dept. Of Education, and another $2 Million from the Dept. Of Justice.
All while our troops go without armor, adequate medical care, and promised benefits, and 1 out of every homeless person is a veteran.
Yet, voters continue to reward the bought-and-paid-for, FOR-SALE, look-the-other-way, corrupt incumbent politicians in the two-party duopoly in Congress with 96.5% seat-retention rates.
Craig Holmes wrote: Bernanke’s ok was to increase the deficit short term but not increase the long term structural deficit.The Federal Reserve is addicted to excessive money printing.
But it is not hard to understand why, when you consider how it benefits them.
It is not hard to understand why they are now recommending a stimulous package that will probably mean more money-printing.
It’s like playing the game of Monopoly, in which one person (i.e. the privately owned Federal Reserve Bank) can print all the money they want.
Before too long, the Bank owns everything, and everyone else is broke or deep in-debt to the Bank.
DOH!
Also, with every new bank loan, 89% of each loan is new money created out of thin air (a 9 to 1 ratio).
And the other 9% comes from depositers.
And guess who receives the interest on that loan? The bank of course.
So, it is no wonder that banks want to loan money to everyone under the sun (including your dog, cat, and children; literally).
This is why the U.S. mail is full of credit card applications.
This is why there’s a credit crisis.
This is why the U.S. Dollar is falling against all major currencies.
We have had constant and incessant inflation since 1950 (see below), which is why a 1950 Dollar is now worth 11 cents.
Yet, few question any of this, and many are eager to get their rebate checks.
Rhinehold wrote:The problem is any other way to ‘boost the economy’ like deficit spending while we are bankrupt, rebate checks and lower interest rates are not going to fix the issue, only give us temporary relief. We need long term solutions…Absolutely.
Such sort-sightedness is why we have numerous long-term problems that can not be fixed with more short-term solutions.
____INFLATION_______
CPI (CPI=100 for year 1967)
650 + - - - - - - - - -X
600 + - - - - - - - - -X
550 + - - - - - - - - -X
500 + - - - - - - - - X
450 + - - - - - - - - X
400 + - - - - - - - - X
350 + - - - - - - - -X
300 + - - - - - - - X
250 + - - - - - - - X
200 + - - - - - - -X
150 + - - - - - - -X
100 + - - - - - -X
050 +XXXXXXXX
000 +_______________YEAR
1 1 1 1 1 1 1 1 1 1 2 2
8 8 8 8 8 9 9 9 9 9 0 0
0 2 4 6 8 0 2 4 6 8 0 2
0 0 0 0 0 0 0 0 0 0 0 0
David wrote: It is not a good time to be Bernanke.And it will get worse before it gets better by trying to put out the fire by throwing more gasoline on it.
Obama is talking about rebates ($250 now, and maybe $250 later).
Nothing like bribing the voters with their own tax dollars, eh?
John McCain and Ron Paul are the only politicians recommending spending cuts.
Bush wants his regressive tax system made permanent.
None of that is enough.
More long-term solutions are needed.
Yet, the federal government refuses to address these 10 regressive/oppressive sysetms which (by design) have been hammering the middle-income-group for 30+ years:
- (01) Debt
- (02) Inflation
- (03) Government FOR-SALE
- (04) Regressive Taxation
- (05) Illegal Immigration
- (06) Corruption, graft, pork-barrel, waste, government bloat
- (07) 7 wars in 90 years (some unnecessary)
- (08) Election problems; two-party duopoly blocking access to ballots; voter fraud, etc.
- (09) Lawlessness; increasing crime rates
- (10) Healthcare mistakes killing 195,000 per year
Who ever becomes president won’t be effective if they are saddled with the same do-nothing, corrupt Congress that enjoys 95%-to-99% re-election rates.
At any rate, the voters will have the government that they deserve, which is the lone reason for concern.
CORRECTION: 1 of 4 homeless persons is a veteran.
Posted by: d.a.n at January 19, 2008 12:17 PMd.a.n said: “TRANSLATION: Don’t borrow the money. Instead, print some more money.”
Actually, no. Bernanke referred to PayGo as the way to go. Offset the stimulus with spending reductions elsewhere, since this has a much higher priority than many other items.
Posted by: David R. Remer at January 19, 2008 12:29 PMCraig said: “Bernanke’s ok was to increase the deficit short term but not increase the long term structural deficit.”
No, because he specifically referred to PayGo rules as a positive way to handle the stimulus cost. You must be referring to some other more general or generic comment elsewhere. His reference to PayGo was in the question and answer session. Perhaps you are referring to his initial prepared statement.
Posted by: David R. Remer at January 19, 2008 12:33 PMDavid wrote: Actually, no. Bernanke referred to PayGo as the way to go.Good … if that actually happens.
But it is very doubtful that Congress has the discipline to cut spending (based on the last 30 years) and reduce borrowing, until the plutocrats have squeezed every single penny they can out of the middle-class Americans.
It is a war on the American middle class, as evidenced by these 10 regressive/oppressive systems, which did not all come about by mere coincidence.
The majority of Americans have produced a lot for the last 30 years, but what do the majority of them have to show for it, when 1 in 10 people own 70% of all wealth?
Those regressive/oppressive systems are the reason for it.
So many years of painting ourselves into a corner leaves us few options.
That applies more to the average American voter, since it will be most of the average American voters that will suffer the consequences; far more than the plutocrats and the wealthy, some of which who abuse wealth to influence and control govenment (as evidenced by the fact that 99.85% of all 200 million eligible voters are vastly out-spent by a very tiny 0.15% that make 83% of all federal campaign donations; and the fact that 90% of all elections are won by the candidate that spends the most money).
As you wrote above:
David wrote: It is not a good time to be Bernanke.Is sure isn’t. But it is worse for many Americans at the lower-to-middle-income levels who will suffer the most as inflation and unemployment worsen.
David wrote: Inflation: It is an odd thing for our government to exclude food and energy prices, enormous inflation items over the last 18 months, from the inflation indexes. However, the policy experts and wall street could not ignore the largest hike in wholesale inflation in 26 years as announced day before yesterday.Yes, I don’t think inflation or GDP are being reported accurately. It’s not like our government never lies to us? Why should we believe their GDP and inflation statistics?
Just as expected, the Federal Reserve will resort to more money-printing by lowering interest rates and making credit easier to obtain (since each new loan consists of 89% new money created out of thin air). This will continue to debase the U.S. Dollar and cause inflation to rise.
And Bush is telling people to get their rebates and spend, spend, spend ? ! ?
Somehow, that path doesn’t seem to be working.
Isn’t that the same path we’ve been on for some time now?
That is, unless, like in a game of Monopoly, you are the one player that can print all the money you want and receive the interest on those loans too.
Too much of that has been happening for too long.
Now it will take time and pain to get through it, and exacerbated by nation-wide personal debt of $20 Trillion, and the National Debt is $9.2 Trillion.
There will be no easy, short-term fixes.
There is little (if anything) the Federal Reserve can do to improve the problem, but there is much it can do to make it worse, and it appears unlikely that the federal government will ever have the discipline to reduce spending or address the long term problems. So, it is likely to get worse before it gets better.
And by 4-Nov-2008, the voters are very likely to worsen their own situation by:
- (1) electing a president that bribes them with their own tax dollars and promises them rebates and tax cuts.
- (2) saddles that next president (whoever that is) with the same Congress that enjoys 95% re-election rates.
- (3) and allows Congress to continue to ignore massive debt, illegal immigration, inflation, regressive taxation, government bloat and over spending, waste, election problems, expensive and deadly healthcare (killing 195,000 people per year).
And since voters repeatedly reward Congress with re-election, how likely is it that the incumbent politicians will actually clean up their act suffieciently to make a difference?
Posted by: d.a.n at January 19, 2008 02:49 PM
d.a.n said: “But it is very doubtful that Congress has the discipline to cut spending (based on the last 30 years) and reduce borrowing, until the plutocrats have squeezed every single penny they can out of the middle-class Americans.”
BINGO! Unless the Senate forces it, the House Bill plans to put the stimulus on the credit card, instead of cutting spending elsewhere. Vote out these incumbents, again and again until they get the message that we voters aren’t kidding around anymore.
Posted by: David R. Remer at January 27, 2008 07:31 PMThe sad part is the longer I live, the more I truly believe that the maority of Americans deserve what they get, and it is inevitable that most people have decided to be sheep.
OK, that’s liable to make some people angry, but reality seems to back it up.
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