Web Letters | The Nation

Indictment of Obama's policy

We hear down here in rural America that business has $1.8 trillion on the sidelines and this is holding the econmy back, and in my opinion, this is true. And no matter what is said, this is an indictment of the White House's policy. They have made the mess and Americans are waiting to invest their money in things that will work to save the country. After the November elections, look for a real fight between Congress and the White House—very public, very messy. Obama will be shown as the radical he is. God save America!

I would welcome deflation!

Sorry if I seem selfish, but I have noticed that economies do not run on self-denial, at least in the real world.

Yes, selfish, because for years I have been paying for our wars and other poor investments through inflation. My saved dollars, pension, annuities, are worth far less than ten years ago. Futher, I have been paying because Fed and Treasury policies have depressed the interest returns I earn on my savings to almost nothing. My only choice, if I wish to try to keep up with inflation (always understated in BLS statistics) is to take risks in the stock market—not wise at my age!

Yes, I know that deflation would mean ruin for businesses that depend on growth and would have over-valued inventories. But I have experienced that already in the value of my condo, which I would like to sell but cannot.

Besides my petty problems, deflation would mean less tax revenues for the federal government and the need to borrow more to sustain our imperialism. The Chinese might at first enjoy seeing our dollars with greater purchasing power, but then they would bring in fewer because of the race to the bottom here in consumer demand.

Economic hardship? Why not! Prosperity in wartime on borrowed dollars and cheap lives do not awaken Americans to the "evil empire"—ours—maybe deflation and more hardship would.

The bubble needs to deflate

We are still living in a bubble where there is too much disparity between the price of a new home and the take-home wage of one American worker; especially the unemployed worker. The working poor are not much better off. Either wages must go up dramatically or the cost of goods must come down.

Hoping for cheaper labor will only exacerbate the problem. But I am afraid America has not learned its lesson as the hoards of cheap laborers are still allowed to come across the border.

Wall Street only recognizes rising prices as a sign of growth, prosperity and a healthy economy. But this is only a delusion seen through the rose-colored glasses of Wall Street. Rising prices signal the doom of an economy.

Wall Street used to invest in the American economy, now it is trying to be the American economy, which is one of the biggest problems. The rising ranks of the unemployed and the working poor are not investors and are not going to be helped by Wall Street numbers.

There needs to be a dramatic redistribution of wealth, starting with higher taxes on the wealthy. Wall Street needs to come to an end. We can only hope that this next round of deflation will doom Wall Street once and for all or that we can tax it out of existence.