when helicopter Ben decided to drop the FED Funds Rate while the rest of the worlds' major national banks were raising their lending rates, I decided to contact my voice in congress by getting a hold of Ellen Tauscher of the fighting 10th. I wanted to write my voice in Congress and say "HE LADY, Ben-o is goin' all medieval on the dollar and if he's not careful, he's going to drain every last ounce of it's value so that we are going to need wheel barrels of cash just to buy a loaf a bread, a la Germany 1933." I may have phrased it differently but the jist was please stop killing the dollar. Wall Street needs to sleep in the bed they made and it isn't the tax payer and the middle class who should finance their follies. In addition could you please give the currency printing presses a little break and tell the FED to actually raise the FED rate because the CPI value they are using to justify this action is the very definition of fraud.
So Congresswoman Tauscher replied, or should I say some uneducated democrat lackey replied. I certainly hope it wasn't Ms. T because if it was it means that someone without the simplest understanding of economics is voting for me in congress. So to keep faith in the system we will say this page replied with this statement about the 'relative worth' of the dollar:
Dear most valued constituent,
...To be sure, the hapless tax cuts and profligate spending policies of the Bush Administration have not strengthened our economy. However, other factors - including a decreased flow of international funds into America, extensive reliance on credit, and a lack of personal savings by many Americans - have also driven down the value of the dollar. The dollar's relative worth is most often a symptom of movements of capital between countries. As such, it is these flows, and the forces behind them, that are likely to determine the strength of our economy. Be assured that I will continue to work to implement policies that promote fiscal responsibility and inspire strong economic growth.
Now to be clear, at no point did I even suggest the problem was the Bush Administration, even though of course all administrations that choose to spend gagillions more then they bring in greatly contribute to the problem. I purely commented on 2 things: 1. the FED lowering the borrowing rate when their job is to protect us from inflation which that specifically does not and 2. STOP PRINTING SO MUCH GOD DAMNED MONEY.
Let's look at each factor that lackeyboytoy included:
1. Decreased flow of international funds into America - why would that happen? Because the dollar is weaker and they can earn more in foreign markets then in the US. SORRY that's the result, not the problem.
2. Extensive reliance on Credit - absofuckinlutly, except the way her boytoysexslave states it, it makes one think that she is actually referring to consumer credit and again it can't help, but the problem here is the liberal debt driven policies of our government's monetary leaders.
3. Lack of personal savings - hhhwwwwhhhaaatttt???? How does our populations' lack of savings impact the value of the dollar? So if we save more does that mean those dollars are out of circulation? OF COURSE NOT, the banks loan those dollars out to other folks so they can cash in on their home equity and get that dream pair of jet skiis with plasma tv's attached. So the dollars are in circulation meaning the new dollars printed, going into circulation dilute the value of the existing dollars and voila, we are seeing double digit percent increases in everything we need to live, which inherently means everything not counted in the CPI.
I am not endorsing our lack of savings of course. But I am calling out that she, sorry her sexboytoyfrombucknell, is suggesting that the population is the reason for inflation instead of the monetary policy makers who believe that the best way to support the rich is to destroy the middle class.
If this is my representative and this is what the Democrats think, and the Republicans are spending at lights out speed then we need a new party. How about the REAL CONSERVATIVES. Mr. Paul would you be available?
UPDATE: Edited to remove the guy's name. I hope nobody harasses him or his employer. He was good-natured and his sign was innocuous a...
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