By Armstrong Williams
Tuesday, October 09, 2012
Well, it's always a clarifying thing to be out of the
country, but while in Europe recently and getting US news through a Euro/global
filter. Things have also taken what looks like a decisive turn. Almost all the
elements of impending disaster are in place.
The Fed, seemingly following the path of the ECB,
announces QE3 just after the Euros commit to unlimited backing of EU debtor
nations. Easy money is here to stay on both sides of the Atlantic. In London
they are taking measures to rival Singapore as a reminbi center. Don't get this
news in the US - too busy running down stories of unimaginable triviality - but
whenever I'm outside the US I hear financial stories about the Chinese currency
positioning to be a rival reserve currency. The seeds of our coming economic
repositioning, and financial diminution, are being put in place. Of course, BHO
can't be blamed for not taking the straightforward moves to counter this -
perish the thought. I'm sure it's GWB's fault somehow (of course someone needs
to explain to me how a housing bubble a couple decades in the making - even
Wikipedia's explanation, look up "US housing bubble," is reasonably
accurate - is all his fault). Please note that during QE1, western funds flowed
to China at a rate of $2B/day. With our new easing, the Chinese will not have
to stimulate themselves - they'll use our funds. We debase our currency....and
they preserve theirs. Same story....different day.
It also looks like BHO's convention bounce - built on red
meat and radicalism for those at the convention, and seeming moderation in
prime time - has calcified. The Euros all want BHO: they're tired of US power
and recognize a fellow social democrat who will further burden the US with an
unsustainable welfare state and Leftist policies that will ensure low growth
for a decade.
Look at what's in store: the fiscal cliff, a further risk
of downgrade, a radicalizing Mid east (the cries of the Israelis warning about
Iran are being ignored) and we seem bent on keeping the kind of leadership that
will ensure a non, or tepid, response (from behind of course) to ALL these
issues. Don't bother us, can't tend to the global economy or our strategic
challenges...we're too busy burdening business with new taxes and regulations
and adding to our transfer payments so an ever-expanding number of people are
dependent on an under performing central government. Ah, the land of the
dependent and the home of the indebted (has a 'nice' ring to it and certainly
has the virtue of accuracy).
You want to see the future of the US: come to Europe.
Over here they're broke, but they've accepted it. I guess we'll get used to
mediocrity as well.
Ordinarily, I'd hold out some hope for the debates, but
by then I think we'll be out of undecided voters. I had not thought it possible
for BHO to be re-elected. By any objective and historical standard (or even by
standards he layed out earlier in his term) he manifestly doesn't deserve it,
but we seemed poised to walk into the fire pit. What we are about to do makes
no sense and constitutes an economic death wish. You Dems please enjoy the
election night party as smiles will be in short supply soon enough.
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