Posts Tagged ‘inflation’
October 14th, 2010 at 10:49 pm
Parallel Universe: Europeans Warning U.S. About Economic Irresponsibility
Posted by Print

Further proof that the Beltway Keynesians have taken us down the economic rabbit hole: it’s now falling to Europeans to warn us that inflation and stimulus are tanking the dollar. Consider the following from the Financial Times:

Increasing expectations the Federal Reserve will pump more money into the US economy next month under a policy known as quantitative easing sent the dollar to new lows against the Chinese renminbi, Swiss franc and Australian dollar. It dropped to a 15-year low against the yen and an eight-month low against the euro …

A senior European policy-maker, who asked not to be named, said a further aggressive round of monetary easing by the US Federal Reserve would be “irresponsible” as it made US exports more competitive at the expense of its rivals…

Russia’s finance minister Alexei Kudrin, in a meeting with European Union officials, blamed the US – and others – for global currency instability.

He said one reason for exchange rate turmoil “is the stimulating monetary policy of some developed countries, above all the United States, which are trying to solve their structural problems in this way”.

The entire justification for the creation of the Federal Reserve was to ensure that monetary policy would be insulated from political pressure. If Ben Bernanke chooses to act as a handmaiden for the profligacy of the Obama Administration, then he deserves to be cleaning out his desk just as much as the president.

August 16th, 2010 at 5:06 pm
More Money, More Gold?

With the Federal Reserve announcing it will increase the supply of paper money (i.e. dollars), it is once again time to consider the merits of (re)adopting the Gold Standard to help regulate the value of our nation’s currency.  Gold Standard 2012, a project of the American Principles Project, has a helpful video:

November 16th, 2009 at 1:05 pm
Report: ObamaCare Will Increase Health Care Spending
Posted by Print

The government can’t manage to control the laws of economics like it used to.

No surprise here, but according to a new study released by the non-partisan Center for Medicare and Medicaid Studies, the House health care bill will increase health care costs by $289 billion in the next ten years.

As much as the White House talked about “bending the health care cost curve” downward, the House health care bill, H.R.3962, does the exact opposite.

For some reason the Administration can’t understand that more government spending on health care without commensurate gains in supply leads to health care inflation, driving up costs for all consumers.

Other highlights from the report:

By calendar year 2019, the mandates, coupled with the Medicaid expansion, would reduce the number of uninsured from 57 million, as projected under current law, to an estimated 23 million under H.R. 3962.

The estimated effects of H.R. 3962 on overall national health expenditures (NHE) are shown in table 5. In aggregate, we estimate that for calendar years 2010 through 2019 NHE would increase by $289 billion, or 0.8 percent, over the updated baseline projection that was released on June 29, 2009… The NHE share of GDP is projected to be 21.1 percent in 2019, compared to 20.8 percent under current law.

Public spending would increase under H.R. 3962 as a result of the expansion of the Medicaid program and other Medicaid changes, less the net Medicare savings under the bill. Private expenditures would be higher as well…