Pedro's Podium: Thoughts for Thursday

Thursday, November 18, 2010

Thoughts for Thursday - 11/18/10

Strange behavior for the Democrats?

In a triumphant return to Washington the Democrat party celebrated their amazing victory on Election Day. It now appears that Nancy “Leader for Life” Pelosi received her reward for leading her party to a stunning turnaround for the Progressives in Congress. By purging their ranks of non-believers they can now use their super majority… Well they can use their unity to… Well they can use their time tested ideas to… But with their overwhelming support from the American people… Anyway they showed that they listened and now understand… OK it may be possible that they didn’t learn anything from the mid-term election. The next Congress will be very interesting. I wonder if they will be able to stop all of the bills from passing the house like they claimed the last minority party seemed to be able to do.

Please Support Our Sponsors

I think it is amazing that the former Speaker will continue to serve in a leadership position with no apparent lose of stature due to the historic loses that her party suffered. I have to assume that something occurred during that super secret “party” held before her election to Minority Leader. It must have been an interesting party. I’m thinking naked and other compromising pictures were threatened. Of course I wasn’t there, but what else would have caused her fellow elected representatives to make such an unexplainable decision. Of course they have a plan. I’m interested to see what it is, but with the lack of morals and loyalty to the country that have been shown during their rule, I fear it will be bad for the nation.

I wonder if Nancy will take another victory lap around the Capital Building? With her giant gavel of course.

Icebergs and the QE2

This week the Treasury announced QE2. Now it seems that the Fed Chair or the Secretary of the Treasury swore under oath to Congress that they would not monetize the debt, but it seems that they found another answer. They are going to perform a Quantified Easing. Since this is apparently the second one, it is being called QE2. I don’t remember hearing an announcement of when QE1 occurred, but I think that it must have occurred in the last 2 years.

Of course my first thought when I heard QE2 was the luxury liner. Which reminded me of the story of the famous maiden voyage of the Titanic, steaming full speed ahead crossing the North Atlantic with no thought of the disaster for which they were headed, came to mind. It is very clear that no one in the current Administration understands the path that they have set us upon. At least I hope that they are just ignorant, but it seems that it is becoming clear that they understand that this is a path of total destruction for the nation.

To see what happens when a country monetizes their debt, just look at Zimbabwe. It could be that our brain trust in Washington, really believe that they can borrow and spend our way out of debt through hyper-inflation. They’ve already shown that they are more then willing to screw bond and stockholders. But they need to realize that screwing over the Chinese is not going to be as easy as it was to give the General Motor’s bond and stockholders the boot. For one thing the Chinese have a very large army. Setting the army aside for a minute, there is also the fact that many of the manufactured good that we depend upon are now made in China. If Washington really thinks that we can buy back the bonds they are holding with a pile of Monopoly money, they might really need to reconsider such a course of action. Of course hyper-inflation will destroy the lives of millions of Americans. So do you really think that the Democrats are looking out for the average citizen? Well they often say that they are looking out for the poor. If they continue on this path they will be looking out for all of us.

Now you may be asking: What is a Quantified Easing? Well it is when the treasury prints money and then buys US Treasury Bonds. To the novice this may sound a lot like “monetizing the debt” and you would be correct, their just calling it a “Quantified Easing.” So really what is the difference? Well if it were me or you I would say 5 to 10 year in prison for lying to Congress.