A Hurricane Called Inflation

Cost pressures are everywhere due to the Feds insatiable appetite for Printing Money. The prices at the pump have risen dramatically recently, cotton is at its highest level in a decade, copper is the highest its been in 40 years, and the price of corn, sugar, wheat, beef, pork, and coffee are going through the roof as we speak. Just as we have recently witnessed in China's effort to cool inflationary pressures in its own economy, rates will undoubtedly rise here in the U.S. cooling the jets of recovery in the mortgage sector. Corporate earnings will contract due to higher internal costs, welcome to the world of Quantitative Easing. We have borrowed and spent are way into a financial quagmire and according to the Obama administrations latest budget plans, the poor and middle class must absorb the hit. Areas like the student loan market, Medical, Medicaid, home heating for the poor, children's programs, social security, welfare, and everything considered an entitlement will be on the chopping blocks. Is this really the type of people we want to become?. The answers wont be easy, but the line of ethical and moral issues have to be addressed if this Nation is to continue on a successful path.

Double Standard

As the world witnesses history in the making in Egypt, our allies should ponder our seemingly dual standard policy position in aligning ourselves with the people, as opposed to the governmental regimes in such international conflicts. If you are a dictator of a small country, or even a large Communist Nation you just got a real time experiment in how the U.S. will react to such an uprising or revolution. Have we completely lost our minds as far as common sense is concerned?. Why not just fly under the radar, and let them work it out for themselves. Instead we have to instruct others by providing an American blueprint or game plan as big brother to the world. Its no wonder were broke as John Boehner stated in his most recent interview, we pay countries like Egypt over a billion dollars a year with borrowed money from China for God knows what. Now one of the Egyptian military leaders stated on their second day of new found independence that a bailout would be needed to rebuild the peoples job base in Egypt. Sounds like code for tighten your seat belt American taxpayer we need some of that Nation-building cash you people are so adept at doling out. At some point our own people are going to start realizing how this really works and start a FACE BOOK REVOLUTION via GOOGLE EXEC themselves.

Hornet's Nest

Friday Vice President Joe Biden continued to amaze me with his ability to say what he thinks without consideration of the potential ramifications. Speaking at the University of Louisville in Kentucky, he urged Iranians to let your people march, let your people speak, release your people from jail, let them have a voice. By doing such things we only promote the negative perception of a dangerously meddling nation trying to impose our belief systems throughout the globe in the name of Democracy. We portray ourselves as the worlds savior, when in reality we only increase global Anti-American sentiment and hatred with such remarks. There is a key difference between what is occurring in Egypt between demonstrators and the Egyptian military, and potential demonstrations in Iran and its called lethal force, its much more probable under the same conditions that the Iranian military would open fire on its own people and Biden should consider this possibility before he makes such comments. The Muslim brotherhood and others throughout the world view this as an opportunity to continue to market us as president Mohammad Ahmadinejad likes to call us the Great Satan.

Quantitative Easing 2 = Great Recession 2

As Ben Bernanke is questioned by members of congress this week in relation to the Federal Reserves recent Quantitative Easing position and the potential inflationary pressures it could apply here and abroad, one got the feeling old Ben was talking down to those that questioned his strategy and authority. He deflected the notion that policy here in the United States was causing a rise in commodities such as food and energy, and the resulting civil unrest in Tunisia, Egypt, and potentially other nations. The fact is clear that debasing the value of the worlds reserve currency which the dollar is, applies inflationary pressures and commodities rise, the civil unrest usually occurs first in poorer nations where they cannot sustain such increases in the cost of such vital resources. Here in the United States we are better insulated from these increases due to a far greater standard of living, and wealth of its average citizens. Strangely enough the complaints of the Egyptian people of a broadening disparity between the rich and poor are starting to sound like a familiar theme in the U.S. between the middle class and the rich. Such issues as national deficits, unfunded pension liabilities, and the diminished wealth of average Americans will probably increase in the years ahead if comprehensive and effective solutions are not made.