Saturday, March 21, 2009

AIG: How Others See Washington and Our Future

As an aghast world – from China to Chicago and Chihuahua – watches, the circus-like U.S. political system seems to be declining into near chaos. Through it all, stock and financial markets are paralyzed. The more the policy regime does, the worse the outlook gets. The multi-ringed spectacle raises a disturbing question in many minds: Is this the end of America? Is This The End of America, Terence Corcoran, National Post, 3/19/2009

Accompanied by a chart that shows the US monetary base trending straight up from the fall of 2008 to the present, Corcoran doesn’t mince words. It’s not the U.S. economy that’s going crazy. It’s the United States government under the leadership of Obama, Pelosi, Reid, Frank, the Fed, and the Treasury.

The AIG bonus firestorm is a diversion from real issues, but it puts the ghastly political classes who make U.S. law on display for what they are: aging, self-serving demagogues who have spent decades warping the U.S. political system for their own ends. (Is This the End…,Corcoran, National Post, cont’d)

Put that in a frame and hang it on the wall – without doubt the finest description of government out of Washington, DC, that the writer has heard since P.J. O’Rourke described Congress as a “parliament of whores.” O’Rourke’s remark is actually insulting to the sex worker business. The worst, burnt-out, track-marked tart on the Minnesota strip would take offense at being compared to Congress’s Democrat leadership.

We’ve survived this before, Corcoran says, but this time, in the new McCarthyism where the IRS is being openly used to target individuals with tax penalties, we may not survive. One reason is the dictatorial, Hugo Chavez-like arrogance of the current administration.

Expansion of government spending, plunging the U.S. into unprecedented deficits, is without parallel. In economic policy, through regulation and control of energy output, financial services and monetary expansion, the U.S. government has embarked on a fundamental reshaping of America. It is designed, in short, to bring on the end of America. (Is This the End…,Corcoran, National Post cont’d)

Since domestic coverage of this disaster is so heavily biased in favor of the notion that if Obama says it’s good, it must be good it is necessary to look outside of MSM, and even America itself, for revelations about what the White House and Congress are doing to our country. And the bold fellows on the Hill and at 1600 Pennsylvania may have a rude surprise in store for them.

A paper just published by the Federal Reserve Bank of St. Louis..says that the Fed will have to be prepared to absorb all the excess money it has poured into the U.S. economy. It will be a technical and political challenge unlike any central bank has ever undertaken. The future of America is at stake. (Is This The End…,Corcoran, National Post, cont’d)

What would absorbing the money entail? Look at the price of anything. Close your eyes. Then look again after the Fed does this. That $1.58 milk? It’s $3.16 now. That $26,000 Prius? It’s $52,000 now. That nice $95,000 salary you have? It’s worth what $47,500 used to be worth. This is called inflation, when too much money chases too few goods, the inevitable result of printing money. You could ask any refugee from Argentina what that’s like.


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