No subject

Very good idea Henry: there is nothing wrong with rewards and punishments!

It is all about what gets the rewards and what gets the punishments!

Sabri




--- In BillTottenWeblog at yahoogroups.com, Bill Totten <shimogamo at ...> wrote:
>
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> San Francisco Examiner editorial (April 29 2009)
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> Santayana's maxim - those who refuse to learn from history are doomed to
> repeat it - has grown threadbare from heavy use. But it unavoidably
> comes to mind this week, as President Barack Obama and his fellow
> Democrats on Capitol Hill blithely put the final touches on the chief
> executive's proposed 2010 federal budget.
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> With an unprecedented deficit that's approaching $2 trillion, this
> budget proposal is a surefire prescription for hyperinflation. So every
> senator and representative who votes for this monster $3.6 trillion
> budget will be endorsing a spending spree that could very well turn
> America into the next Weimar Republic. For those too young to remember,
> that was the period in Germany in the years between the two world wars
> when people needed wheelbarrows full of money to buy a loaf of bread.
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> In a 1993 interview, Harvard University law professor Friedrich Kessler
> offered a chilling portrait of the Weimar Republic: "It was horrible.
> Horrible! Like lightning it struck. No one was prepared. The shelves in
> the grocery store were empty. You could buy nothing with your paper money=
."
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> Thanks to the expanding profligacy on Capitol Hill, a version of such
> economic hell will likely happen here, according to two prominent
> economists. Johns Hopkins University professor Steve Hanke notes that
> the Federal Reserve's balance sheet "has more than doubled in size since
> August. Unless the Fed shrinks its balance sheet", he warns, "...
> inflation will roar back with a vengeance".
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> The printing presses have been running nonstop since Congress approved
> the Troubled Asset Relief Program and the $787 billion bailout of
> insolvent firms that went wobbly after abusing "easy credit". Yet with
> interest rates now close to zero, Hanke points out that the Fed is
> merely "prescribing more of the same".
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> In their groundbreaking Monetary History of the United States (1971),
> Anna Schwartz and the late Nobel Prize winner Milton Friedman found that
> then (as now) a huge influx of foreign capital accompanied the early
> stages of Weimar hyperinflation. Schwartz, who today believes the
> "systemic risk" cited as justification to recapitalize failed financial
> institutions was just an excuse to save bankers' hides, agrees that
> massive inflation is "unavoidable".
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> There have been other, more recent, bouts of hyperinflation. After years
> of deficits, the former Yugoslavia tried to print its way out of a
> similar predicament, then imposed price controls to counter the
> inevitable fifteen to 25 percent annual inflation rate. Economic
> collapse quickly followed the worst hyperinflation in history. On
> November 12 1993, one million dinars could be traded for one German
> deutsche mark; by January 4 1994, the exchange rate was six trillion to o=
ne.
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> With Obama's reckless 2010 budget - which was passed without a single
> Republican vote - Democrats are playing with inflationary fire.
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> http://www.sfexaminer.com/opinion/Examiner-Editorial-Get-ready-for-Obamas=
-coming-hyperinflation-44030232.html
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> TO POST A COMMENT, OR TO READ COMMENTS POSTED BY OTHERS, please click
> on the word "comment" highlighted at the end of the version of this
> essay posted at http://billtotten.blogspot.com/
>