"...an utterly corrupt new religion called environmentalism..."
If the history of this planet's climate over millions of years is any guide, we are about to enter a new ice age.
CAIR spokesman Ibrahim Hooper indicated in a 1993 interview with the Minneapolis Star Tribune that he wants to see the United States become a Muslim country.
Inflation and the Burgeoning Deficit
By Tom Brewton (08/01/08)
How will the Fed handle it?
The Wall Street Journal reports (U.S. to Ratchet Up Borrowing, July 31, 2008):
With this fiscal year's budget deficit expected to more than double from the previous year, the U.S. government plans to nearly quadruple its borrowing to $555 billion.
The Federal Reserve's dilemma is that opening the money-supply spigot enough to provide funds for banks and other institutional investors to buy the $555 billion of new Treasury debt will contribute further to the inflation already under way.
Imported oil is a prime example. Measured in gold, the price of oil is about the same per barrel as it was a decade ago. To a lesser extent, the same is true of oil measured in Euros. Our spectacular oil price increase for imported oil is to a very large degree the result of past over-expansion of the money supply by the Fed, with its inflationary effect.
Alternatively, keeping the money supply steady will cause interest rates to rise and will have a crowding-out effect on non-government borrowers, from businesses, to people buying consumer durables like autos and homes.
This is particularly true in today's financial markets, where lenders already have much reduced liquidity and pinched capital bases as a consequence of the subprime mortgage bubble-burst. Banks are dumping subprime assets at fire-sale prices, while scrambling to find equity investors to rebuild their balance sheet ratios.
Both for lender equity-raising, and for absorbing new Treasury debt, the course of least resistance is to seek funds from overseas investors. Foreign central banks in Japan, China, and other large exporters of merchandise to the United States are over-loaded with dollars, dollars that are depreciating in value via inflation. To some extent those overseas dollar holders welcome income-producing investments for their great dollar holdings. Needless to say, however, they will exact a high price, both in interest rates and in equity ownership.
As noted in Our Inflation is China's Foreign Relations Weapon, continuing to expand the money supply to accommodate Federal deficit spending, in present circumstance, is tantamount to loading a pistol already pointed at our heads.
Both by absorbing yet more Treasury debt, and by becoming the investors of last resort for financial institutions and for corporations seeking to stay afloat in the current credit crunch, foreign nations achieve a growing power to influence our foreign policies and ultimately to threaten our national sovereignty.
The Fed's present dilemma - to fund yet more Treasury debt via over-expanding the money supply and thereby adding fuel to the inflationary fire, or to curb the excessive money supply to forestall inflation while squeezing the economy - has been inherent in our system since Congress's passage of the 1946 employment Act.
That Act added to the mission of the Federal Reserve the task of maintaining full employment. Ultimately that task is wholly incompatible with the Fed's basic role, established in 1913, of maintaining a sound currency and acting as a temporary lender of last resort for banks during credit crunches.
Thomas E. Brewton
(Printer friendly version) Email: Tom Brewton
Native of Louisiana; graduated from Louisiana State University in 1956. While there had the good fortune to study political science under Eric Voegelin and Constitutional law under Walter Berns.
Graduated from the Harvard Business School in 1958, then worked in the Wall Street financial community for thirty years. After retiring, surrounded by liberals in Scarsdale, New York, began writing op-ed pieces for local newspapers and essays for my children, aiming to counter the barbarism of liberal-socialism. From this came my website, The View From 1776 ( http://www.thomasbrewton.com/ ). A staff writer for the New Media Alliance, Inc.
Send Feedback To Tom Brewton
Site: http://www.thomasbrewton.com
UPSSA
United Progressive Socialist States of America
|
"Mexico, Canada partnership underway with no authorization from Congress"
The United States Is Being Overthrown By Our Politicians - "A silent but all-reaching coup is taking place within the
United States. This coup is not being directed by bomb-laden Muslim terrorists, nor will it ever be covered by the mainstream media.
The seditious act is being carried out by our very own elected officials, with President Bush leading the insurrection."
"The FDA has conveniently used the excuse of looking out for consumer safety to increase their perverse regulatory power,
undermine free speech, disrupt commerce, and generally get in the way of helping people improve their health. The "half-truth" of
the safety issue is used as a ploy to reduce the rights of Americans, one freedom at a time. Once again, the FDA is seeking more
police power to intimidate supplement companies. This is one step in an overall FDA master plan to eliminate therapeutic nutritional
supplements from the free market. Those who lose are the American public." The FDA - A Wolf in Sheep's Clothing
|
|
