Category Archives: Inflation

UPDATE II: Egypt In Economic Context (‘A Wave of Global Inflation’)

America, Economy, Foreign Aid, Foreign Policy, Inflation, Middle East, Neoconservatism, Republicans

Speaking of boobs (http://barelyablog.com/?p=33995), Dana Perino, the Heidi Klum of the commentariat, wishes Iraq on the Egyptians. Perino, who was once a spokesperson to Bush, a man who was barely able to speak, prattled to a reserved Megyn Kelly on Fox News about the upheaval in Egypt.

Mentioning her boss’ achievements in Iraq made Ms. Mindless glow with pride. She pointed out that the bliss in Baghdad was brought about in response to the democratic urges of the Iraqis—yes, this was murder with majority approval, an American majority (http://www.ilanamercer.com/phprunner/public_article_list_view.php?editid1=363.) Perino also implied that glorious Iraq is a product of a well-thought out philosophy.

Airheads aside, serious analysts—the kind who also live in the region or visit it on occasion—say Iraq “is looking a lot like Lebanon,” violent and balkanized beyond repair. Its few remaining Christians are being systematically exterminated.

Perino gave another shout-out of sorts to Iranian interests. Without being asked, she dredged up the Gaza-strip elections her boss had agitated for and got, back in the day. If you recall, those gave us Hamas.

Another day, another dullard.

Even John Bolton, who’ll take any position in opposition to Obama’s less bellicose foreign policy, seemed to agree with the restraint of the State Department’s response to the riots roiling Egypt.

Contrast Bolton’s unusual retrain with the American Enterprise Institute’s formulaic demand that “President Obama’s administration … assert the U.S. government’s role as the preeminent defender of freedom in the world. … Now is not the time for equivocation.”

Ditto the Weekly Standard. The folks there hanker after a time “when the Bush White House was feeling its oats with victories for the freedom agenda in Iraq and then Lebanon.”

That’s the neoconservative parallel universe for you.

In response to Bush pressure, “Mubarak pushed back with the 2005 parliamentary elections when he awarded the Muslim Brotherhood some 20 percent of the seats—if you want democracy, the Egyptian president seemed to be warning the White House, I’ll stick Osama bin Laden’s friends in parliament.”

Justin Raimondo, at Antiwar.com (for which I once wrote a bi-weekly column), puts “the revolutionary wave now sweeping the world” in the context of catastrophic economic policies and attendant realities. This wave will not spare the US, despite “the myth of ‘American exceptionalism,’ which supposedly anoints us with a special destiny and gives us the right to order the world according to our uniquely acquired position of preeminence.”

Coming to a neighborhood near you?

UPDATE I: You bet. In Egypt, “The government must approve the formation of political parties, effectively assuring its monopoly on political power.” (Via Infoplease.com ) More to the point: “the country’s inefficient state-run industries, its bloated public sector, and its large military investments resulted in inflation, unemployment, a severe trade deficit, and heavy public debt.”

State-caused poverty and the attendant lack of opportunities are likely the catalysts that have sent Egyptians into the streets.

The emphasis, in the US, exclusively on politics and on Egypt’s democracy deficit is myopic. Nevertheless, this focus allows DC’s chattering classes to forget that we too, albeit to a lesser extent, are over-leveraged. Our moocher and looter classes might also riot once they can no longer live out the life to which they are accustomed.

UPDATE II (Jan. 29): “A Wave of Global Inflation” is the tipping point for Egypt. Jerry Bowyer, author of “Free Market Capitalist’s Survival Guide,” agrees about the role of inflation and the attendant spike in the prices of basic necessities in the crisis in Egypt.

UPDATE III: Sinophobia Trumps Common Sense (Hu Vs. Harry)

Barack Obama, China, Debt, Democracy, Foreign Policy, Inflation

Read these interviews on PBS NewsHour with some remarkably astute students of international politics in Beijing, and you’ll conclude that these young Chinese are as patriotic as Americans, and pretty brilliant in their own right: http://www.pbs.org/newshour/bb/asia/jan-june11/chinayouth_01-20.html. Says the one student: “Democracy is an absolute value in U.S., but it might be not that absolute in other countries.”

Then read my new WND.COM column, “Sinophobia Trumps Common Sense” (http://www.wnd.com/index.php?fa=PAGE.view&pageId=253617) in which I conclude, among other things, that President Obama need not be bashed for holding a state dinner in honor of the Chinese President Hu Jintao. “Civility is not a weakness,” said John F. Kennedy in his Inaugural Address fifty years ago. Obama was civil, not weak.

Here’s an excerpt from “Sinophobia Trumps Common Sense” :

“… It so happens that China’s current financial difficulties are a consequence of a self-defeating devotion to the US dollar. America’s monetary policy, aimed at devaluing the dollar, is hurting China, whose currency is pegged to ours. ‘In order to maintain the peg,” explains financier Peter Schiff, ‘China must continually buy dollars on the open market. But the weaker the dollar gets, the more dollars China must buy.'”

So as to keep purchasing greenbacks, China is inflating its own money supply. However, inflation in China and the attendant price hikes — brought about because of the debased dollar — could threaten the stability of a country that has ‘moved more people out of poverty in the shortest amount of time in the history of the planet.'”

Diplomat that he is, China’s head of state refrained from raising this indelicate matter. For that alone, President Hu Jintao deserves dinner.” …

The complete column is “Sinophobia Trumps Common Sense,” now on WND.COM.

UPDATE I (Jan. 22): As an outsider in American society—at least this is the way I’m often treated—I’m more sensitive to the way my fellow Americans treat certain Others, other than browns and blacks. If you are a brown or a black, you have it made. Americans generally feel good about themselves when they patronize needy minorities, into which category the Chinese do not neatly fit.

Our one reader, below, emblematic of most, describes Hu Jintao as the same as our politicians. I see this blanket statement as American chauvinism: an inability to look at other peoples and cultures except through the American prism. It pisses me off as much as that big fat mama pissed me off at the gym, when she spoke slowly at me, as she informed me I had done too many sets on a weight-pushing apparatus. Why did she speak to me as one would to a retarded child? Because I spoke back in a different accent to hers. In other words, if one differs from an American, one might as well be from Deep Space.

Has anyone bothered to read a bit about Hu Jintao? You could indeed argue that he is every bit as bad as our lot; but you’d be wrong to ignore how different are his life experience, work background, and education.

Imagine an American politician that isn’t a slimy lawyer, but a hydraulic engineering from “humble origins,” who excelled at school in singing and dancing? Imagine an American politician whose father “was denounced during the Cultural Revolution?

Why not analyze what these differences portend?

Read about the man before you resort to pat pabulum. Among the Chinese I’ve talked to in the US (American citizens who’ve lived through turmoil back in China), Hu Jintao is viewed as a reformer, slowly shepherding a billion people toward peaceful progress as best possible. Chinese, who tend to be statist, seem to think of Hu Jintao as capitalistic.

As observed in “US In The Red And Getting Redder”: “The picture of China to emerge from behind those pretty Chinese screens is complex. The embodiment of feng shui it is not. The trend, however, is unmistakable: China is becoming freer, America less free. The devil is in this detail”:

China has undergone considerable economic restructuring and market reforms, the consequence of which is a 300 million strong Chinese middle class. Poverty levels have receded from “53 percent in 1981 to 8 percent in 2001. Only about a third of the economy is now directly state-controlled. As of 2005, 70 percent of China’s GDP was in the private sector.” The Chinese financial system is duly being liberalized—banking is diversifying and stock markets are developing. Protections for private property rights are being strengthened as well.

UPDATE II: LOOK WHO’S TALKING. Via LewRockwell.com:

“From TSA feel-ups to ubiquitous surveillance cameras, from email and phone eavesdropping to assassination squads, from torture to secret prisons, from a massive expansion in the police state to bigger government in general, from illegal searches and seizures to illegal wars, President Hu questioned the US human rights record.

Oh, wait a minute. It wasn’t that at all. It was this. (Thanks to Ravindran Kuppusamy.)

UPDATE from Daniel Mahaffey:

Hu didn’t mention the US government’s human rights abuses because either a) he is a gentleman who did not wish to insult his host, b) given his own government’s predilections, he doesn’t see the actions of the US government as abusive, or c) as he said in his prepared remarks, governments should not meddle in the affairs of other governments. I don’t tend to quote Christian scripture often, but among the things Jesus of Nazareth said were these two relevant instructions: 1) Let he who is without sin cast the first stone. John 8:7, and 2) Thou hypocrite, first cast out the beam out of thine own eye; and then shalt thou see clearly to cast out the mote out of thy brother’s eye. Matt 7:5. Perhaps Mr. Obama is unfamiliar with these concepts.

UPDATE III (Jan. 23): Today, The Telegraph’s Ambrose Evans-Pritchard raises the issue I raised here yesterday (see “UPDATE I”):

“Senate Majority Leader Harry Reid called Mr Hu a ‘dictator’. Is this a remotely apposite term for a self-effacing man of Confucian leanings, whose father was a victim of the Cultural Revolution, who fights a daily struggle against his own hotheads at home, and who will hand over power in an orderly transition next year?”

‘Apocalyptic Pain’ Coming Down The Pike

Debt, Economy, Federal Reserve Bank, Inflation

Another obstetrician who says “no” to spending is Sen. Tom Coburn, R-Okla. The good doctor has warned of “apocalyptic pain’ from an out-of-control debt that could cause 18 percent unemployment and a massive contraction in the economy that would destroy the middle class.” This is what this “leading Republican deficit hawk said in an interview that aired Sunday” on Fox News.

Sen. Coburn, who recently issued a report on government waste, warned that the U.S. only has about three or four years to get its fiscal house in order or it could find itself facing austerity measures seen in Greece, Ireland, Spain, Portugal and earlier in Japan.

For one, we already have that level of unemployment:

The real unemployment rate is 16.3 percent. The discrepancy between the official and the awful numbers has arisen because the former count, conveniently, “only those who have looked for work in the last four weeks.” “Hundreds of thousands of people, some discouraged by their failed job searches, left the labor force. The labor force includes only those who are either employed or are looking for work.”

Coburn is a good man. But hitherto there have been too few good men like him. The band (of fools) has played on for too long. “WE ARE DOOMED.”

Our Overlords Who Art in D.C.

Ancient History, Debt, Elections, Glenn Beck, Government, IMMIGRATION, Inflation, Morality, Taxation, The State

“Glenn Beck and his faithful are dead wrong. Our overlords Who Art in D.C. will forever be incapable of sympathizing with us; will never respect us or our ‘God-given rights’; and will always rob us blind. Why? Because they can.

Contrary to what some of my countrymen believe, not even praying hard will send us a fatherly figure that resembles an American Founder to deliver us of the rotating kleptocracy that has taken up permanent residence in Washington and its surrounds.

Like the migrant flotsam and jetsam inflowing from Latin America, the imperial government and governing class are going nowhere.

Yes, how about that? Americans venture into Mexico at their own peril. Some have been killed on that country’s border. Still, politicians and their enabling pointy heads have looked obedient Americans in the proverbial eyes and told them that the fabric of their communities is renewed by endless immigration; that humanity has the natural right to venture here there and everywhere; and that, although they are suffering near Grecian joblessness, they should, ‘shut-up and pay up.’

A bloodbath of a midterm election has done nothing to stop the slash-and-burn Congress — ducks that should be lamed — from concocting bogus tax relief that increases the cost and burden of government, and guarantees that Americans pay for the accreting oink sector, if not through taxes, then by way of debt and dollars devalued.

How is that possible?

Across the pond, governments have begun courageously slashing their spending so deeply as to send the moochers and the looters of their societies rioting into the streets. Stateside, the government is in the midst of orgiastic outlays. Egged on by media ‘experts,’ journos, party strategists and TV tartlets (Republican and Democrat), Washington (Left and Right) behaves as if the events underway over there have no bearing back here, in debt-laden America.

At $14 trillion, America’s OPD (Outstanding Public Debt) almost equals its GDP (Gross Domestic Product). Yet the comitatus — ‘the sprawling apparatus … that encompasses not only the emperor’s household and its personnel … but also the ministries of government, the lawyers, the diplomats, the adjutants, the messengers, the interpreters, the intellectuals’ — see nothing wrong with a proposed 1,924 page Omnibus bill, worth 1.2 trillion gigabucks.

In the book Are We Rome? The Fall of an Empire and the Fate of Rome, Cullen Murphy draws the unflattering parallels between the imperial rule of ancient Rome and that of modern America, down to the contemporary ‘musicians’ [that would be Bono and Bon Jovi, surely], ‘the courtesans, diviners, buffoons … the people who taste the emperor’s food before he himself does … the core groups of bureaucrats and toadies who function within the nimbus of great power.’ The domain name ‘USA.gov.’, if you will.” …

More in my new column, “Our Overlords Who Art in D.C.” Read it now on WND.COM.

Just in time for Christmas, my libertarian manifesto, Broad Sides: One Woman’s Clash With A Corrupt Society, is now available on Kindle.