Tuesday, March 31, 2009

Can Sarah Win in 2012?

How Sarah Heath Palin does in the 2012 presidential election depends in large part on how effective the Obama presidency is (at least in the eyes of U.S. voters). There is growing evidence that the Administration of Barack Hussein Obama will be calamitous. In that regard, consider two events that will be coming soon to America: hyperinflation and economic stagnation. If you liked the Jimmy Carter presidency, you're going to love the reign of Obama.

"Hyperinflation," where people go to Wal-Mart with a wheelbarrow full of low-value "dollars" to buy staples is an extremely important concept. The way the Fed is "solving" the economic problem by printing tens of thousands of tons of greenbacks will lead inevitably to very high inflation, which tends to feed on itself. This is one of the nasty little "surprises" that the Obama policies will produce.

Another key term is "stagflation," which the Carter Administration excelled at. Of coruse, the way to deal with hyperinflation is to jack interest rates up to Carter-like levels (17% mortgage rates), which of course produces economic stagnation, which is back where we are now. The goal of the Obama Administration is not to 'fix" the economy, but rather to produce the illusion of better days around the time of the next election. Pray for America.

Bye Bye U.S. Dollar....

UN backs new new global currency reserve (The Sunday Telegraph, U.K.)

"A UNITED Nations panel of economists has proposed a new global currency reserve that would take over the US dollar-based system used for decades by international banks. The proposal follows the controversial call by China's central bank governor, Zhou Xiaochuan, to create a new world currency reserve to replace the greenback as part of an overhaul of global finance. China and many developing countries blame the global crisis on US mishandling of over-extended mortgage loans and investments in them.

"With the US also borrowing trillions of dollars, it risks hyperinflation, which would considerably weaken the dollar. An independently administered reserve currency could operate without conflicts posed by the US dollar and keep commodity prices more stable."

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