Future Fear


In a recent, hard-hitting article for American Thinker, Ed Lasky anatomizes the “pack of lies” that Obama and his party have “peddled to the American people” with respect to the Affordable Care Act. This is no longer news, obviously, though many of the electorate still remain in the dark, to awaken in the course of time to an unwelcome revelation. Lasky goes on to focus on “previous revelations that periodically cloud the luxurious fantasy world where Obama dwells,” such as, to take one example, his admission that there are “no such things as shovel-ready projects,” and concludes: “For a man who went to a swank private high school in Hawaii, then Occidental, Columbia and Harvard Law School, [Obama] is the most clueless president to occupy the Oval Office.”

Lasky’s assessment, which a plethora of writers and analysts has come to share, seems indisputable. Indeed, Obama’s regulatory, stimulus-oriented and redistributive economic program is perhaps the most damaging “legacy” he will have left the American people. “The economy continues to strengthen and recover,” touts the president’s Council of Economic Advisers, and Obama opines that the nation’s financial system is “safer” now than it was in the recent past, and that his administration has laid a “new foundation” for a healthier economy. The facts tell an entirely different story.

For America is simultaneously trapped in a vertiginous debt spiral while relying on the binge printing of fiat money -- a process known by the euphemism of “quantitative easing” -- brewing a perfect storm of decline and eventual collapse. Of course, as Milton Friedman observes in Money Mischief, since Nixon “broke the final tenuous link between the dollar and gold in 1971, no major currency…has any connection to a commodity,” and therefore, “Every currency is now a fiat currency.” The problem, however, is one of fiscal promiscuity or the absence of discretionary oversight of the quantity of money swamping the fiscal marketplace, that is, the unstinted printing of the money supply backed by nothing but the happy accident that the American dollar is the world’s reserve currency. Such intemperate printing of American dollars to service debt load, prop up a bloated entitlement apparatus, and generate “stimulus” projects -- those “shovel ready” jobs but only in the sense that the shovel is the gravedigger’s implement -- dilutes the value of the country’s legal tender and is viable only so long as the dollar does in fact remain the world’s reserve currency.

But will it? According to China Daily USA, “The World Bank's former chief economist wants to replace the US dollar with a single global super-currency, saying it will create a more stable global financial system.” Michal Krol, a researcher at the Brussels-based European Center for International Political Economy, concludes that “it is time to formulate the fundamentals for global monetary governance.” The New York Post has reported that “the US dollar is getting perilously close to losing its status as the world’s reserve currency.” If the currency goes under, as investment banker James Rickards warns us in his new book Currency Wars, “everything else goes with it…stocks, bonds, commodities, derivatives and other investments are all priced in a nation’s currency. If you destroy the currency, you destroy all markets and the nation.” “Former Washington D.C. attorney Michael Snyder agrees, stating that “interest rates on our debt and everything else in our financial system would go up to crippling levels.”