COMMENTS

 

The U.S. Economy and Bad Government Policies

 

 

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How to Protect Ourselves?

 

Posted, Saturday, August 2, 2008 11:31 am

 

Yes, we sheeple are in very deep trouble. How do we fight back in your opinion w/regard to unsound $$?? What is the best way in your opinion to protect the little wealth we possess?

As you wrote: “Over the last few years, U.S. monetary policy has resulted in a massive wealth transfer from savers, retirees and money holders in general to banks, mortgage lenders and debtors in general as the purchasing power of the dollar has plummeted. Last September, after the Bernanke Fed decided to drop interest rates as the U.S. dollar was already in the downtrend, I wrote, "foreign (dollar) investors have been 'taxed' by the American Fed's policy of benign neglect regarding the dollar."

Since then, the Bernanke Fed has gone much further. It has pushed the Federal funds rate to the 2 percent level from the 5.25 percent level it was in mid-September 2007. In so doing, by pushing real interest rates deep into negative territory and by depreciating the U.S. dollar, the Fed has heavily taxed retirees and savers in its rush to shore up American financial institutions. Indeed, it can be said that the semi-private Fed has been floating American financial problems in a sea of new money by running the printing press.

The act of printing excessive amounts of bills is the worst enemy of sound money. It is a way to destroy fiat currencies. It is the main source of inflation and, sometimes, of hyperinflation. In the end, we know that it robs people of their savings and lowers their standards of living.“

May I ask what is your opinion of Ron Paul with regard to his views on abolishing the Fed completely and nationalizing the 12 Fed banks? Do you personally support any alternative plans for sound $$??... I look forward to reading your book “The NAE“. I attempt to make it mandatory reading with my family and friends!!!

Robert

 

 

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US Economy and Bad Policies

 

Posted, Friday, August 1, 2008 5:51 pm

 

Nice writeup. You are right US economic policies are tremendously misguided. Couple this with a press that misinforms or underinforms the public on everything from globalization to American Hedgemony and the likely outcome will be the unthinkable; a big war. Of course we shouldn't forget the lobbying by the military industrial complex or AIPAC

Rick

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Answer by R.T.

On the military-industrial complex and on AIPAC, you may want to read my two articles on these issues:

The Five Pillars of the U.S. Military-Industrial Complex

9/25/2006

AIPAC, the Religious Right and American Foreign Policy

8/21/2006

 

 

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Fascism and Imperialism

 

Posted, Wednesday, July 30, 2008 10:42 pm

 

Your article is fairly comprehensive, and consistent with my own view.

Although you speak to the economic and financial issues, I believe the Bush Maladministration had a covert policy of dispossessing and disenfranchising the great mass of ordinary citizens, affecting transfers of both wealth and sovereign power from the people to Big Business.

Using the word in its dispassionate economic sense, Bush 'led' a fascist government. And, in terms of its foreign policy, Bush 'led' the most imperialist US government since the very late 19th century.

John

 

 

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Official Figures

 

Posted, Thursday, July 31, 2008 1:17 am

 

I very much appreciate Dr. Tremblay's work. I have a minor disagreement, however, with his acceptance of official figures for U.S. federal deficits.

The reported numbers appear to ignore 'off-budget' items and thus understate the true annual shortfalls.

I prefer to look at the reported figures for

the national debt, available at HYPERLINK "http://www.treasurydirect.gov/NP/BPDLogin?application=np"http://www.treasurydirect.gov/NP/BPDLogin?application=np

These show that the actual increase in borrowing (ie actual deficits) for

the fiscal years listed are as follows:

2001  $132 Billion

2002  $409 Billion

2003  $589 Billion

2004  $605 Billion

2005  $524 Billion

2006  $574 Billion

2007  $556 Billion

2008  $570 Billion projected, based on $474 Billion to date.

Greg

Answer by R.T.

I did not have space to explain the difference between public held debt and agency held debt. Here are the current figures:

US Government total Debt= $9,537,591,129,721.98

Debt held by the public= $5,351,639,048,098.45

Debt held by intergovernmental agencies=$ 4,185,952,081,623.53

Most of the difference comes from Social Security which is managed, to a large extent, as a pay-as-you-go program.

One can therefore say that the Bush-Cheney administration has been spending part of the SS taxes, besides its public borrowing.

Since I mentioned the possibility of “hyperinflation”, there is the obvious fear that the U.S. government will monetize its debt in the future.

 

 

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