Fed chairman Ben Bernanke has washed off and put a new coat of wax on the Free Money Truck. Cheers ring out from Goldman Sachs et al., as Bernanke’s Free Money Truck rumbles trough Wall Street. Dr. Bernanke is like a financial Santa Claus—lots of free stuff for all the boys and girls. Free money, of course, means that the Wall Street shysters pay scratch for borrowed money and run rampant around the world speculating on any hot investment of the moment. As long as the Free Money Truck doesn’t have a wreck, Wall Street profits will pour in like maple syrup at a church pancake breakfast. Bonus checks will be magnificent, and NYC’s Per Se will be packed nightly.
But down in retirement communities, retirees are earning zip-o on hard-earned retirement savings. Winter thermostats are cranked down to 50 degrees. Chuck roast and chicken thighs feel like a treat. Some retirement. Meanwhile, since the Fed restored the Free Money Truck at year-end 2008 and rolled it down Wall Street, the bond and stock markets have gone bonkers, Manhattan luxury real estate prices have gone through the roof, and the Miami high end is now a boil. Before long, even real estate in Flint, Michigan, can figure to take off, never mind a steady stream of murders and general slum conditions.
Americans are being duped, and the politicians in Washington along with their financiers on Wall Street know it’s all a shell game. The Fed should be shuttered. Americans are stuck with multi-terms for the president, Senate and House. No way a single-term constitutional amendment would pass, because it takes a two-thirds vote. Americans, however, can reduce compensation to crumbs, eliminate pensions, and force these folk to pay their own medical. This would prevent the politicians from getting too comfortable in office. Retired Americans, bringing their own money to the table, would run for a single term with the idea of actually doing good for constituents.
One fact and one alone shows Americans what a disgraceful sham is being perpetrated in Washington. America has the highest corporate tax rate in the world. Yes, in the world! American corporations are taxed at a 40% rate. In Hong Kong it’s 16%, in Singapore it’s 17%, and in Switzerland it’s 21%. Your elected politicians spend too much, tax too much, borrow too much, and print (sorry, digitally transfer) too much. When is the revolution? Republicans and Democrats alike are screwing you. They are on the same disgraceful team. We, the voters, are the patsies. It’s time to wake up.
Join Debbie and me as a Cato Institute benefactor and get the straight scoop from what is far and away America’s leading think tank. I know Cato co-founder Ed Crane well. Ed has spent nearly 35 years at Cato on your behalf. I also know Cato’s wonderful chairman, Bob Levy. Bob and I go back four decades. I have been writing to you about Cato CEO John Allison’s great new book on the fraud of Dodd/Frank. Finally, Chris Preble, Cato’s Director of Foreign Policy Studies, is a friend. Mr. Preble is America’s most erudite foreign policy analyst and the author of the groundbreaking book The Power Problem: How American Military Dominance Makes Us Less Safe, Less Prosperous, and Less Free .
It’s time to re-tool! The house, as they say, needs to be cleaned. The deck needs to be reshuffled. In the coming hand, American voters need a better draw at the tables with betting odds to make them a winner. Thomas Jefferson would be proud. Mr. Jefferson has had a long wait. Have a great day.
Richard C. Young, Chairman, Young Research & Publishing
Fed Chief Stands Pat on Easy Money By VICTORIA MCGRANE