"These are mind-boggling numbers," said Sung Won Sohn, an economist at the Smith School of Business at California State University. "Our foreign investors from China and elsewhere are starting to have concerns about not only the value of the dollar but how safe their investments will be in the long run." - Associated Press
http://apnews.myway.com/article/20090714/D99DSUG00.html
This sounds great. I don't need to say much, the article really speaks for itself. We keep spending money that we don't have and it's insane to think that this won't eventually come to a precipice. Inflation WILL eventually hit and take its own devastating toll on an already shaky economy. Once again, what is the motive? I am certain that Tim Geithner, Rahm Emanuel and Barack Obama know exactly what is going on...but do we? It seems to me that the only logical conclusion is that this administration is deliberately worsening an economic crisis in order to build the class of government dependents (tax-eaters). In other words, they are intentionally growing the proletariat. -
http://www.newsmax.com/us/obama_soviet_influence/2008/09/30/135873.html
"A government who takes from Peter and gives to Paul will always have the support of Paul." - George Bernard Shaw
http://apnews.myway.com/article/20090714/D99DSUG00.html
This sounds great. I don't need to say much, the article really speaks for itself. We keep spending money that we don't have and it's insane to think that this won't eventually come to a precipice. Inflation WILL eventually hit and take its own devastating toll on an already shaky economy. Once again, what is the motive? I am certain that Tim Geithner, Rahm Emanuel and Barack Obama know exactly what is going on...but do we? It seems to me that the only logical conclusion is that this administration is deliberately worsening an economic crisis in order to build the class of government dependents (tax-eaters). In other words, they are intentionally growing the proletariat. -
http://www.newsmax.com/us/obama_soviet_influence/2008/09/30/135873.html
"A government who takes from Peter and gives to Paul will always have the support of Paul." - George Bernard Shaw
The only thing I might offer up is that the inflation scare might not really be there. If there is anyone in the Federal Government that I haven't lost complete confidence in yet it's Ben Bernanke. When you look at a chart of the insane increase in the money supply it's hard not to come to the conclusion that inflation is on it's way quickly. But the catch is that this rapid increase has taken place in bank reserves and not in currency in circulation. So these banks are able to maintain capital requirement levels, but they aren't really lending to anyone because nobody has the credit worthiness for them to take the risk. So as long as Bernanke puts on the breaks, raises the capital requirments and starts selling treasuries in time we might not be in as much trouble as it looks. However, if he isn't reinstated and Larry Summers gets the gig the Fed loses all independence and becomes an extension of the executive branch. What it comes down to in my mind is that Ben Bernanke is doing everything right to stabilize the economy while the Obama Administration is doing everything they possibly can through the worst stimulus package every created to hinder his progress.
ReplyDeleteTherein lies the problem. President Obama and Secretary Geithner want the Federal Reserve to have more power, through the executive branch. I see this to be a huge issue and a direct conflict of interests. Geithner was the head of the New York FED and worked for Goldman-Sachs, where he made a lucrative salary. Why are these issues not looked at by the MSM? The people have a right to know these things. And correct me if I'm wrong, as the FED is not necessarily my area of expertise, but aren't 5 of the 10 primary arms foreign banks? (One of those being Goldman-Sachs) Why would anyone be under the assumption that any foreign organizations have our best interest in mind? I would tend to think the exact opposite, but that's because I live in the real world...not liberal Utopia. Also, any additional info you can provide on the inner workings of the FED would be tremendous. The more I learn about it, the more I distrust it.
ReplyDelete