Regarding the new Bush Administration tax cutting stimulus package, professor George Reisman warns,
Today, we have a credit crisis emanating from the collapse of the real estate bubble that the Fed launched in order to cope with the effects of the collapse of the stock market bubble that it had launched only a few years earlier. Now, in order to cope with the effects of the collapse of the real estate bubble, the government and the Fed are looking for yet another program of monetary "stimulus." This time it's to be in the form of cutting taxes while financing an undiminished, indeed, an increased amount of government spending by means of the creation of still more new and additional money.
Little surprise right? This is Compassionate Conservatism at its best: compassionately cut taxes to ease the very economic crisis their Keynesian tricks caused, only to increase the national debt, raising the inflation rate (by printing and circulating these unbacked - by gold - dollars), and ultimately crushing us with the debt, but more especially with the interest, both of which ultimately must be paid back.
When in doubt about all this, remember what J. Reuben Clark Jr., warned years ago: "interest never sleeps."
Read: A Creditors' Protection Bill - Mises Institute
The Liberty Letters are a project of the Latter-day Center for Moral Liberalism
Comments (0) Filed under: Vox Populi — Steve Farrell @ 11:55 am
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Steve Farrell
My friends - No one, not in my situation, can appreciate my feeling of sadness at this parting. To this place, and the kindness of these people, I owe everything. Here I have lived a quarter of a century, and have passed from a young to an old man. Here my children have been born, and one is buried. I now leave, not knowing when, or whether ever, I may return, with a task before me greater than that which rested upon Washington. With the assistance of that Divine Being, who ever attended him, I cannot succeed. With that assistance I cannot fail. Trusting in Him, who can go with me, and remain with you and be ever where for good, let us confidently hope that all will yet be well. To His care commending you, as I hope in your prayers you will commend me, I bid you an affectionate farewell. - President Elect Lincoln's Farewell Address at Springfield, Illinois, February 11, 1861
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republic, not a democracy, when they established the government of the United States.