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Kevin Phillips, author of Bad Money: Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism, has said that the decisions of former Treasury Secretary Hank Paulson and current and past Fed Chairmen Ben Bernanke and Alan Greenspan will lead the U.S. back to 1973 - 1975 inflation.
"...as soon as the recovery begins you get rising inflation because you're going to play havoc with all money supply and liquidity that's been unleashed," said Phillips, according to Reuters.
Phillips correctly predicted the present global financial crisis, and argues that present policy simply replaces that the financial sector bubble with a currency bubble that will hurt average Americans.
According to Reuters, Phillips goes on to say:
The Democrats have replaced the Republicans as the big benefactors to the financial community...The financial community is donating more to Democrats than ever before and you've got more Democrats in the financial community, creating a very powerful pattern there. I don't think you're going to see the Obama administration and Congress willing to be tough enough in dealing with these things.
In a recent Op-Ed, Phillips says that the near future in the U.S. will probably bring more of the same sort of passing the buck and misdiagnosis of the problem what we have seen for the last few years:
But for the moment, let me underscore: the average American knows little of the dimensions of the financial sector aggrandizement and misbehavior involved. Until this is remedied, there probably will not be enough informed, focused indignation to achieve far-reaching reform in the teeth of financial sector money and influence. Equivocation will triumph. This will not displease politicians and regulators leery of offending their contributors and backers.
Meanwhile, noted historian Niall Ferguson argues that Europe is actually worse off than the U.S. in the present financial crisis because of the highly progressive nature of taxation and because European banks are even more overleveraged than U.S. banks. The result, according to Ferguson, is that Europe's problems are just beginning.
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Comments
Barack Obama ran on a platform of "Change you can believe in." This turns out to be very true; pocket change is all Americans have left to believe in.
Other than American families being bankrupt and counting every pocket change penny, Obama simply lied to America.
Barack Obama is recycling economic policies of Jimmy Carter. This is not change. Obama and democrats have set our nation on a course for economic disaster, this is certain. Equally certain is inflation, if not stagflation, is coming. What is not certain is how severe will be this inflation to come.
This pending economic disaster works for our family. Back in the late Seventies and early Eighties, our family made fistfuls of bucks buying CD accounts which paid 12% interest over a period of only one year.
We will do the same when this Obama stagflation cycle hits America in the next year or two, maybe three. Almost all American families will suffer financial hardship greater than this suffering of today, when inflation takes hold.
Our family will again make fistfuls of bucks because we are a "cash and carry" family; we maintain a strict family budget, no debt, literally no debt. We are looking forward to our again cashing in on high interest earning CD accounts, thanks to Obama-Carter economic policies.
Hey! America, you voted Obama into office. Now it is time for you to pay the piper, you but not us.
Okpulot Taha
Choctaw Nation
Niall Ferguson, this boy is spot on right, especially about his notion on European socialism.
I would bet my bottom buck, and my bottom is big, I would bet you, the reader, have not a clue where our AIG bailout tax payer money is ending up. We taxpayers gave AIG, and other financial institutions, hundreds of billions of our tax dollars.
Our AIG tax monies are being shipped over to Europe. We are bailing out Europe. Go on, read, research and learn. You will discover taxpayer money, our money, about 60 billion dollars, so far, is in the hands of Europe. Before this is done, a good hundred-billion of our money will end up in Europe.
Obama recently pledged to give Europe another couple hundred-billion dollars of our money to help out, gave away our money while Obama waved a French white flag of surrender before our world.
Go on, research, read and learn. Follow the money. Obama and European governments are certainly not telling you about this. Quite the opposite; Obama and Europe are making every effort to keep quiet news about our money being shipped over to Europe.
Socialism. "Obama is gonna give us welfare checks! We are saved!"
Yeah, sure, you are saved if you do not mind living at poverty level. Obama ain't going to give you diddly-squat; Obama has no money to give you.
You will not be thinking "saved" when China comes knocking on America's door to collect this debt we owe China. America is now owned by China, and China is now our boss.
America is now in a welfare nation mindset. Americans would rather collect welfare checks than to get out there and earn a living, rather than be financially responsible. America is becoming just like Europe; welfare socialism.
Well, surprise, surprise! America is bankrupt, Europeans are pocketing our money, our taxes are skyrocketing and you ain't getting a welfare check.
Strikes me Americans will have to get up off the potato couch, lose some weight and start earning an honest day's work.
Yeah, and fat lazy pigs will fly.
Okpulot Taha
Choctaw Nation
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