Republican Presidential Debate – Candidates say 1930 like Depression Imminent

On the day of the Republican Debate for Presidential Candidates, the FED released the minutes of the most recent meeting where the 50 basis point cut in interest rates was decided. Oddly enough no reference was made to increasing inflation. Even more interesting is that the discussion about the labor statistics were surprisingly missing. Unanimously the entire board decided to drop the FED reference point by 0.50%. Hmmmmmmm. No inflation, no referral to labor data and the entire board decided to bailout the financial institutions for billions of dollars of speculative losses.

While the debate was going, Alcoa announced its numbers. Alcoa makes aluminum products and sells goods across the world. Alcoa missed its earning numbers by about 4%. Total revenues were up but strangely enough cost of goods sold increased and they were unable to pass on the increases to their customers.

We know that a weakening dollar makes commodities increase in price while they were unable to sell their goods at a higher dollar price. So not only do we have inflation across the US economy but we have exported it across the world through our irresponsible interest rate policy.

Politicians are comparing this period to the 1930s. They are saying that “protectionism” will result in another great depression. Protectionism, as they call it, cannot do anything. We are heading for the greatest depression the US has ever known because of the disastrous policies of Reaganomics and the wholesale auction of America’s equity. The candidates are convinced that Americans are not intelligent enough to understand jobs, economy or finance. The same people who are advocating that the US government not respect its contractual agreements with the American people think that US citizens are not educated enough to know about how to run a business or spend their money.

The reason Americans are upset with the economy is that the economy is bad. Inflation is incredibly high and families cannot pay their bills. The Pollyannesque view that politicians are presenting does not correspond to what we are experiencing. It’s the economy stupid! Politicians think that we are jealous because some people are making a lot of money. This is not the case. We do not like people making a lot of money when they do not deserve it and our investments suffer. We do not like spending $ 2 billion a week on a war to protect corporate interests and then hear that we do not have enough money in the governmental coffers to pay for social security. Social Security is a contract. If the government cannot respect its responsibilities then the government must liquidate its assets and it cannot take on new financial responsibilities.

Dear Presidential Candidates,

we are not as dumb as you think. Most of us understand financial responsibility. Many of us are enticed into the stupidity of Wall Street speculation because if we do not take these risks we are unable to compete in today’s “service economy” where quality and hard work no longer mean anything. If we do not play the games we are unable to feed our families. This must stop. Americans can handle the truth. Give us real information. Tell it like it is. Let the greedy traders in the financial institutions go bankrupt. Perhaps we will then be able to value skilled labor, hard work, and sacrifice for our future.

Smoke and mirrors eventually dissipate. The piper must be paid. We know how to work hard and make a better future but we must have a true vision of today’s reality. It is not by chance that Americans do not trust politicians. Show some balls and tell it like it is.

One Citizen.

Tags: Government Politics Recession Corporate America Finance Illegal Immigration Economy Reaganomics