Feb. 10th, 2009.
In response to today’s topics and Federal Reserve Chairman Bernanke’s testimony before U.S. House of Representatives Financial Services Committee.
Did Fed Chairman Bernanke testify or imply between the lines that the Fed would guarantee a flat Liquidity and Money curve to prevent the crowding-out of private investments that would otherwise likely be caused by the latest massive government-backed stimulus bill (/spending bill/TARP2 bill/TARP3 bill ...)? Of course, crowding-out limits the effectiveness of fiscal policy and is caused by excessive government expenditures – per any textbook on the subject of macroeconomics and the IS/LM economic model. However, crowding out is supposedly negated by maintaining low interest rates. (See any economics book on Investment and Saving / Liquidity and Money curves and economic modeling.)
And also possibly stated between Bernanke’s lines, are we now in a liquidity trap (as we similarly/supposedly were in the 1930’s)? A liquidity trap supposedly happens when interest rates are so low that the interest rates can do nothing but increase or rise. What does the textbook say to do in such a situation as a liquidity trap? In theory to remedy a liquidity trap, one is told to THROW LOTS OF MONEY AT THE ECONOMY.
Does this sound like a possible synopsis of the current U.S. economy?
Should the average American support such a ‘stimulus bill’ as the preferred and only policy for the nation to climb out of any possible current liquidity trap? Doubtful. Forgive me, but I will not say why such is probably not a good idea, as I dont want to offend anyone with this blog. Ask me why if you wish and I may tell you, or, you could wait for my anticipated [journal] paper relevant to the topic.
But, obviously, the bureaucrats are not the best at marketing and selling their economic plans to the public. Why is that, you might ask? This is most likely so because most of us no longer trust the average politician to act in our best interests or to act in the best interest of the nation. Forgive my candor, if you would be so kind. Please pass along your comments to the issues herein.
AVT
Tuesday, February 10, 2009
Congressman Meeks, Re: Liquidity Facilities for States and Municipalities from the Federal Reserve
Feb. 10th, 2009.
In response to the topics before House of Representatives Financial Services Committee meeting today with Federal Reserve Chairman Bernanke.
Congressman Gregory Meeks [6th District of New York],
While your questions that you posed today to Fed Chairman Bernanke for the Fed to provide “liquidity facilities to states and municipalities” to help those local governments with the current economic difficulties experienced by all is very commendable, please don’t entice the Fed to buy, or the local politicians to sell, more of our birthrights as Americans. Whether such applies to you or not, many of us are well aware of Congress’ propensity to continually and repeatedly sell our birthrights as Americans to the Federal Reserve System. Please don’t allow for the states and municipalities to also sell whatever birthrights we may still enjoy as residents/citizens of our respective states, cities, and townships across the nation. Because we are all aware, the Fed will not likely put forth any such requested funding or liquidity sources to states and municipalities of our nation without expecting some beneficial return for so doing - or such appears by that System's history. If I am not totally clear as to my wording concerning the repeated selling of our American birthright, please contact me so that I may further explain my choice of wording.
AVT
In response to the topics before House of Representatives Financial Services Committee meeting today with Federal Reserve Chairman Bernanke.
Congressman Gregory Meeks [6th District of New York],
While your questions that you posed today to Fed Chairman Bernanke for the Fed to provide “liquidity facilities to states and municipalities” to help those local governments with the current economic difficulties experienced by all is very commendable, please don’t entice the Fed to buy, or the local politicians to sell, more of our birthrights as Americans. Whether such applies to you or not, many of us are well aware of Congress’ propensity to continually and repeatedly sell our birthrights as Americans to the Federal Reserve System. Please don’t allow for the states and municipalities to also sell whatever birthrights we may still enjoy as residents/citizens of our respective states, cities, and townships across the nation. Because we are all aware, the Fed will not likely put forth any such requested funding or liquidity sources to states and municipalities of our nation without expecting some beneficial return for so doing - or such appears by that System's history. If I am not totally clear as to my wording concerning the repeated selling of our American birthright, please contact me so that I may further explain my choice of wording.
AVT
Wednesday, February 4, 2009
Pennsylvania Governor Rendell - Video Poker Machines
Tuesday, February 3rd, 2009.
Honorable Governor Rendell,
In response to your speech today before the Pennsylvania Legislature and as one that often visits Pennsylvania, I would request that you do not pursue your plan to install video poker gambling machines in places of business throughout your state as a method of revenue generation for your state government (or for any other stated reason). Please don’t misunderstand my rationale for this request, I am essentially a true libertarian and I believe that any American should be entitled to pursue nearly any happiness as long as such poses no danger to any other. However, video poker gambling machines (and the likes) would only seem to provide a means whereby more money would often be taken from those that most-likely need to save their money or likely taken from those that should spend on the necessities of life. Such a sentiment [the preference for consumer spending on goods and needs for the necessities of life] would be opposed to spending such monies on a long-shot and unlikely dream of an immediate jackpot pay-out offered by a video poker machine. I ask you, can you relate to such a sentiment as that which I put forth to you here? Do you not realize the temptation such an installed video poker gambling machine would pose to a down-trodden individual who was reduced to his/her last five dollars? It would appear that you care not of such a temptation posed to those who must make vital decisions concerning where to spend one’s last few dollars. To be clear, I admired your success as Mayor in the city of Philadelphia, however, I would request that you not place such greedy machines in venues whereby those machines would likely prey upon the hopes, dreams, and psyche of those most in need of a few extra dollars.
Thank you,
AVT
Honorable Governor Rendell,
In response to your speech today before the Pennsylvania Legislature and as one that often visits Pennsylvania, I would request that you do not pursue your plan to install video poker gambling machines in places of business throughout your state as a method of revenue generation for your state government (or for any other stated reason). Please don’t misunderstand my rationale for this request, I am essentially a true libertarian and I believe that any American should be entitled to pursue nearly any happiness as long as such poses no danger to any other. However, video poker gambling machines (and the likes) would only seem to provide a means whereby more money would often be taken from those that most-likely need to save their money or likely taken from those that should spend on the necessities of life. Such a sentiment [the preference for consumer spending on goods and needs for the necessities of life] would be opposed to spending such monies on a long-shot and unlikely dream of an immediate jackpot pay-out offered by a video poker machine. I ask you, can you relate to such a sentiment as that which I put forth to you here? Do you not realize the temptation such an installed video poker gambling machine would pose to a down-trodden individual who was reduced to his/her last five dollars? It would appear that you care not of such a temptation posed to those who must make vital decisions concerning where to spend one’s last few dollars. To be clear, I admired your success as Mayor in the city of Philadelphia, however, I would request that you not place such greedy machines in venues whereby those machines would likely prey upon the hopes, dreams, and psyche of those most in need of a few extra dollars.
Thank you,
AVT
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