RWWNL — Terence R. Wilken writes: First of all, I hope that all of you voted this month. You may not feel any better, but you did something that is very important if any country is to survive. The Iraqi people gave us an example of that. Let us hope that their effort is rewarded. We can all learn from others. Now it is time to become the teacher. We need to train our government in the fundamental principals of economics. I called H about a year ago to explain to him that it was important for any President to take a basic economics course. It appears that he did not listen.
I have learned to call our new President by his middle initial. President George W. Bush was originally called by his middle initial. At first I was offended that a sitting President would be addressed in such a manner. But then it grew on me. I now think of President Bush as W. To me it has become a term of endearment. I am hoping that H will catch on for President Barrack H. Obama.
We have put a private Company in charge of our money supply, and brought in many experts to save us. We even brought in someone who gave us the bad medicine (high interest rates) to cure our illness once before. Paul Volker has changed his mind. He is going along with the “go along to get along” folks and feed us the good medicine. The good medicine in their mind is more money. In order to pay back the debt that we have already taken on, we will have to buy that debt ourselves.
This will result in lower interest rates, and lower the value of the dollar. Not to worry, our exports will increase and put everyone back to work. A lower dollar will make our goods cheap to foreign countries, and make their goods expensive to us. We can put our people to work and sell to them. Are we happy? I think we will be until we realize what we have done. If we are successful, we will have changed places with China. They will buy our goods, and we will take on their lifestyle. They can then hound us to lower our prices, and force us to buy their debt. Is this a race to the top or to the bottom? I will let you make that choice. (11/14/10)