Wednesday, December 3, 2008
Return to Camelot
"When just about all economists agree, should we rejoice or be scared? During the Weimar Republic, economists at the Reichsbank argued that printing money to finance a war was 'exogeneous' to the economy and thus not inflationary. Hyperinflation in the ensuing years proved them wrong. ... Obama [said], 'I think what's interesting about the time that we are in right now is that you actually have a consensus among conservative, Republican leaning economists and liberal, left leaning economists. And the consensus is this: that we have to do whatever it takes to get this economy moving again that we have to, we're going to have to spend money now to stimulate the economy and that we shouldn't worry about the deficit next year or even the year after that. That short-term, the most important thing is that we avoid a deepening recession.' ... We very much doubt that all this money will stay in the U.S. once the panic abates. Indeed, whereas just about everyone seems to be concerned about deflation, the risk of not only inflation, but hyperinflation increases with every step taken down this road", my emphasis, Axel Merk, 22 November 2008, at http://www.financialsense.com/fsu/editorials/merk/2008/1121.html.
I remember the 1960 election's three issues: the "missile gap", getting the country "moving again" and "pipeline to the Pope". There was no "missile gap". We had about 2,000 "deliverables" in 1960; the "Rooskies", only 67. We had a recession in 1958, anyone remember it? JFK's rhetoric concealed New Frontier inflationary policies. People figured we tamed the business cycle in 1961! They were wrong. Obama, Bill Clinton's claims to the contrary, is our first Negro president. JFK, our first Catholic. JFK went to Harvard College. Obama, Columbia followed by Harvard Law School (HLS). Jackie went to Vassar then GWU. Michelle Obama (MO), Princeton followed by HLS. Jackie wore nice clothes as does MO. The Kennedy's had nice kids, Caroline and John John. The Obama's have nice kids, Malia and Sasha. We return to Camelot! Most people now accept JFK didn't know what he was doing. But he sure sounded good. Will Obama suffer the same fate?