This Year’s Nobel Prize in Doublethink Goes To…
by Simon Black: The
Fools of April
Franks, the rather straight-talking former commander of the war
in Afghanistan way back in 2001, once described US defense policy
wonk Doug Feith as the dumbest fucking guy on the planet.
Feith, a bumbling
architect of the failed Bush Doctrine, now has an intellectual match
in Christina Romer, the former Chairwoman of Barack Obamas
Council of Economic Advisors.
Thursday on the
Daily Ticker, leaving no doubt that she should be the undisputed
frontrunner for the Nobel Committees much anticipated Doublethink
Prize. Warning, do not watch this video while eating: food projectile
WILL permanently damage your computer.
her remarks to the interviewer Aaron Task: There are tools
that we can use, and I think its shameful that were
not using them. Trillions of dollars of government spending,
debt monetization, and money creation isnt enough. Romer wants
us digging ditches with teaspoons.
have a complaint about policy, its that were not doing
enough. Clearly, from the bank bailouts, to the systematic
dismantling of GM in favor of the union, to programs that incentivize
home and auto purchases, to stamping out all means of financial
privacy, to trillion dollar deficit spending, the government isnt
on to say that the Federal Reserves plans to end the second
round of quantitative easing (QE2) in June is a mistake. The
evidence is that its been very effective, and certainly QE1
was very effective. I dont understand why wed be dialing
back that tool because I think it is certainly very helpful.
dollars later and what do we have to show? 50,000 minimum wage workers
flipping Big Macs. Im lovin it.
explains that [quantitative easing] tends to lower long-term
interest rates, it tends to lower the price of the dollar
both of those things are good for ordinary families.
screwing the people who have worked hard and are trying to save
their money with sub-par interest rates that dont keep up
with inflation is good for America. Paying more for food, fuel,
healthcare, insurance, state and local taxes, airfare, rent, building
materials, household chemicals, etc. is good for America.
(Yes Mr. William
Dudley, the iPad 2 is as cheap as its predecessor but bear
in mind that the iTunes music store is slowly, surreptitiously raising
its prices from 99 cents to $1.29
so the Apple deflation argument
is lost on me.)
[Low interest rates] mean that its easier for consumers
to afford borrowing.
thats what American households need more debt. I cant
seem to recall a single instance in US history when consumers taking
on increasing levels of debt posed any danger to the economy.
A lower price of the dollar tends to make our goods more competitive
in foreign markets.
This is one
of the biggest logical fallacies in politics that a weak currency
is good for an economy because it promotes exports. Right, because
so much of the US economy is based on manufacturing. Nevermind that
a weak currency imports higher input costs in the form of higher
energy prices, raw materials, and component parts from overseas.
the rest of the article
April 9, 2011
© 2011 Sovereign Man