Wednesday, November 03, 2010
Hold the Champagne!
Make no mistake, the $600 billion is merely the down payment on what the cultural Marxists characterize as "quantitative easing 2". Since the federal leviathan and its agents produce no product and few services that we serfs are willing to purchase, the injection into the economy of these crisp new banknotes only serves to diminish the value of the so called cash we may already have or expect to accrue to our possession.
The official word on inflation as announced by the government published Consumer Price Index is touted as <1% and anyone foolish enough to accept this garbage as fact is cordially invited to invest in a bridge over the Hudson river which Leonidas is willing to sell at a bargain price. "Since last July, margarine prices have risen 6 percent. Women's dresses are up 6 percent. Beer is up 6 percent. Milk prices have risen 6.5 percent. Candy is 13 percent more expensive. Butter is up 19 percent. Shoes are up a whopping 45 percent. All in just over four months!" For those of you with the time to spare (74min) Leonidas would invite you to view the video here for a somewhat depressing exposition of the present situation obtaining in these formerly "free" United States. Hat tip to my colleague Ol' Remus.
While the government (and most privately administered retirement plans) use the CPI to determine cost of living adjustments to geezers living on defined benefit pension plans, it must be noted that the items EXCLUDED from consideration are food and energy costs. These are precisely the items constituting the bulk of the geezers living expenses. For this reason, and for those willing to connect the dots leading to the Great Government Default, the second consecutive year that SSI recipients will receive no COLA adjustment can come as no surprise. The politicians and bureaucrats in charge realize that the otherwise criminal ponzi scheme is a major contributor to the current financial/economic death spiral. In other words, the dollar train wreck is already baked into the cake. No 65 seat turnover in the House of Representatives can apply the brakes sufficiently without committing political suicide.
In the words of Pat Buchanan the US is looking more and more like the Fourth Republic of France where each election cycle produced radical 180 degree shifts in policy. This situation does however have a few interesting bright spots: What is to become of Speaker Pelosi? Will she retain her current perks including the military commuter jet to shuttle her entourage between her California wine country estate and Sodom on the Potomac or will she "take her marbles and go home"? On the other hand, there are many of us who would assert that her marbles were lost some time ago.