Saturday, March 7, 2009
The next round
Older people feel destitute and betrayed these days. They had saved so they wouldn't have to depend on social security payment they knew was unreliable. The nest egg has suffered the dwindles, and now it all looks like paper. The old timers' sense of security has evaporated.
Quite a few take this even farther. The worry is currency itself will lose value. Whatever is left in the nest egg will be further reduced by the sapping effect of inflation.
Take a look at a dollar bill. It says, "This note is legal tender for all debts, public and private." There you have it, the total value behind your money is what the government assigns to it. Clearly only government can cause inflation.
Mr Obama has a problem. He wants to grow the US Government well beyond the available tax base (The current estimate is the coming deficit will exceed revenue by more than 12% of the Gross Domestic Product). If the Chinese are not interested in any more US debt, the only source of "money" will be by printing more: L'voila, Inflation.
This is not wise, Mr Obama. Many people already feel betrayed by the Democratic controlled Congress' failure to watch over Wall Street. Adding inflationary betrayal directly at the pocketbook may lead to Democratic Party ouster. The people may finally pick up the fact that the Democratics have only been on the party's side, never that of the people.
"A country's prosperity can be seen simply in how it treats its elderly."
-- Rebbe Nachman of Breslov
Not to mention that government buys what no one else wants. When a government is small, this waste doesn't hurt much. But when government buys more than half a nation's output, the magnitude of waste is crippling. Mr Obama may think this is a dandy way to distribute goodies to his buddies, but his wastefulness is going to kill the rest of us.
We get him off the prompter,'thinking' for himself. President Teddy Ruxpin screws the pooch.