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<DIV><FONT size=2 face=Arial>How so? Inflation is a regressively
structured tax on the entire population.</FONT></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
<DIV><FONT size=2 face=Arial>Are you hoping that Inflation will kill the Evil
Empire and end the wars or</FONT></DIV>
<DIV><FONT size=2 face=Arial>do you have some other hope in mind?</FONT></DIV>
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<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="FONT: 10pt arial; BACKGROUND: #e4e4e4; font-color: black"><B>From:</B>
<A title=davegreen84@yahoo.com href="mailto:davegreen84@yahoo.com">David
Green</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A title=ewj@pigs.ag
href="mailto:ewj@pigs.ag">E.Wayne Johnson</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Cc:</B> <A
title=peace-discuss@lists.chambana.net
href="mailto:peace-discuss@lists.chambana.net">Peace Discuss</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Friday, July 16, 2010 8:30 AM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Re: [Peace-discuss] How to win
in November: jobs & income</DIV>
<DIV><BR></DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt">
<DIV><EM><FONT size=2 face=Arial>It looks like to me that a readjustment of
the dollar downward and the RMB upward is inevitable.</FONT></EM></DIV>
<P><EM><FONT size=2 face=Arial></FONT></EM> </P>
<P><FONT size=2 face=Arial>In this case, I think "inevitable" means "a good
thing."</FONT></P>
<DIV><EM><BR></EM></DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"><BR>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"><FONT
size=2 face=Tahoma>
<HR SIZE=1>
<B><SPAN style="FONT-WEIGHT: bold">From:</SPAN></B> E.Wayne Johnson <<A
href="mailto:ewj@pigs.ag">ewj@pigs.ag</A>><BR><B><SPAN
style="FONT-WEIGHT: bold">To:</SPAN></B> David Green <<A
href="mailto:davegreen84@yahoo.com">davegreen84@yahoo.com</A>>; John W.
<<A href="mailto:jbw292002@gmail.com">jbw292002@gmail.com</A>>; C. G.
Estabrook <<A
href="mailto:galliher@illinois.edu">galliher@illinois.edu</A>><BR><B><SPAN
style="FONT-WEIGHT: bold">Cc:</SPAN></B> peace discuss <<A
href="mailto:Peace-discuss@lists.chambana.net">Peace-discuss@lists.chambana.net</A>><BR><B><SPAN
style="FONT-WEIGHT: bold">Sent:</SPAN></B> Thu, July 15, 2010 4:27:53
PM<BR><B><SPAN style="FONT-WEIGHT: bold">Subject:</SPAN></B> Re:
[Peace-discuss] How to win in November: jobs & income<BR></FONT><BR>
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<DIV><EM>No, probably not. But I don't think the deficit (or the
cumulative national debt) is in any way "chimerical" I think it's very
real, and the interest on it alone saps something like a third of all the
income taxes we Americans pay. We owe real money to real lenders; or
else the Fed is simply printing money, which devalues the currency and creates
inflation. Either way or both ways, there's nothing chimerical about
it.</EM></DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"><FONT
size=2 face=Arial>About 2 trillion of US government debt is held by the
Chinese, who recently downgraded the quality of that paper from AAA to
AA. The Chinese wont willingly buy more US debt.</FONT></DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"><FONT
size=2 face=Arial></FONT> </DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"><FONT
size=2 face=Arial>The current rate of inflation is about 6%. It is
currently misreported as about 2.5% via the trick called geometric adjustment
of the CPI. An accurate reporting of inflation will cause mass chaos so
they dont dare tell the truth.</FONT></DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"><FONT
size=2 face=Arial></FONT> </DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"><FONT
size=2 face=Arial>At an AWARE meeting several months ago I made the statement
that the value of the US dollar would fall by 50% in the next year. If
one considers the price of gold as a measure of the value of the dollar,
indeed the dollar has lost about 50% of its value, howbeit it took longer than
I said it was going to. Part of that loss in value has been mediated
somewhat by trading in virtual gold (gold that doesnt exist). The
Chinese recently also stated that the dollar has lost 50% of its value, and
are no longer buying Treasury bills but are buying gold like its going
out of style. They have chosen print Renminbi at the same rate that
the Fed prints dollars thus maintaining the peg to the dollar.
</FONT></DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"><FONT
size=2 face=Arial></FONT> </DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"><FONT
size=2 face=Arial>There was somewhat of a sell off of Treasury bills by the
Chinese some time back but they seem to have agreed to desist rather than
shake the house down.</FONT></DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"><FONT
size=2 face=Arial></FONT> </DIV>
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<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt">In
any event, deficit spending now is needed to put people to work, and
eventually bring the deficit in line with historical levels. Given the
shortage of demand, there is no concern about inflation--in fact, deflation
is more of a concern. Our currency needs to be devalued in relation to the
Chinese, but that will only make domestic products more competitive. Again,
that's a different (but related) issue.</DIV></BLOCKQUOTE>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"><FONT
size=2 face=Arial>The RMB has been historically drastically undervalued
relative to the dollar. There was a small adjustment some time back from
8.2xxx to 6.8xxx. The black market rate used to be 10 while the bank
would give 8.23xx. No one in China much wants dollars
presently. Devaluing the dollar will harm Chinese exports but
cause Americans to pay more for what they buy, and the Chinese will pay
less for the raw materials and feedstuffs they buy. US debt is no
longer considered to be a safe haven. It looks like to me that a
readjustment of the dollar downward and the RMB upward is
inevitable.</FONT></DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"><FONT
size=2 face=Arial></FONT> </DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"><FONT
size=2 face=Arial></FONT> </DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"><FONT
size=2 face=Arial></FONT> </DIV>
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<DIV
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size=2 face=Arial></FONT> </DIV>
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size=2 face=Arial></FONT> </DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"><FONT
size=2 face=Arial></FONT> </DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"><FONT
size=2 face=Arial></FONT> </DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt"> </DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt">DG<BR></DIV>
<DIV
style="FONT-FAMILY: times new roman, new york, times, serif; FONT-SIZE: 12pt">
<DIV
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<B><SPAN style="FONT-WEIGHT: bold">From:</SPAN></B> John W.
<jbw292002@gmail.com><BR><B><SPAN
style="FONT-WEIGHT: bold">To:</SPAN></B> C. G. Estabrook
<galliher@illinois.edu><BR><B><SPAN
style="FONT-WEIGHT: bold">Cc:</SPAN></B> peace discuss
<Peace-discuss@lists.chambana.net><BR><B><SPAN
style="FONT-WEIGHT: bold">Sent:</SPAN></B> Wed, July 14, 2010 10:18:25
PM<BR><B><SPAN style="FONT-WEIGHT: bold">Subject:</SPAN></B> Re:
[Peace-discuss] How to win in November: jobs & income<BR></FONT><BR><BR>
<DIV class=gmail_quote>On Wed, Jul 14, 2010 at 9:27 PM, C. G. Estabrook
<SPAN dir=ltr><<A href="mailto:galliher@illinois.edu" rel=nofollow
target=_blank
ymailto="mailto:galliher@illinois.edu">galliher@illinois.edu</A>></SPAN>
wrote:</DIV>
<DIV class=gmail_quote><BR> </DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #ccc 1px solid; MARGIN: 0px 0px 0px 0.8ex; PADDING-LEFT: 1ex"
class=gmail_quote>"...beyond the scope of this post"?! Come on, John. When
did you think anything to be beyond the scope of your
posts?<BR></BLOCKQUOTE>
<DIV> </DIV>
<DIV>*smile*</DIV>
<DIV> </DIV>
<DIV> </DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #ccc 1px solid; MARGIN: 0px 0px 0px 0.8ex; PADDING-LEFT: 1ex"
class=gmail_quote>You're right that Americans are much more concerned
about jobs than about the deficit - in spite of all that Republicans and
Democrats and the entire MSM can do to get them worried about the
chimerical deficit - but Americans doubt (correctly) that the war is
producing many jobs. Our mercenary army, of course, and some arms
manufacturing jobs - but they'd be there anyway. (Israel e.g. needs
weapons.) Americans' first reaction to an announcement that the US
is withdrawing its troops from the Mideast would not be, "Oh, no, there go
our jobs!"<BR></BLOCKQUOTE>
<DIV>No, probably not. But I don't think the deficit (or the
cumulative national debt) is in any way "chimerical" I think it's very
real, and the interest on it alone saps something like a third of all the
income taxes we Americans pay. We owe real money to real lenders; or
else the Fed is simply printing money, which devalues the currency and
creates inflation. Either way or both ways, there's nothing chimerical
about it.</DIV>
<DIV> </DIV>
<DIV> </DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #ccc 1px solid; MARGIN: 0px 0px 0px 0.8ex; PADDING-LEFT: 1ex"
class=gmail_quote>In fact a withdrawal of US expeditionary forces abroad
would produce a clamor for "building up our defenses" - and probably
scotch any attempt (like the Barney Frank-Ron Paul proposal) to reduce the
military.<BR></BLOCKQUOTE>
<DIV>Probably. Because we (collectively) still believe in the
"terrorist" bogeyman, and have absolutely no concept of how American foreign
policy creates and sustains what terrorists there are around the
world.</DIV>
<DIV> </DIV>
<DIV> </DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #ccc 1px solid; MARGIN: 0px 0px 0px 0.8ex; PADDING-LEFT: 1ex"
class=gmail_quote>How about spending the money going to war actually to
hire people (maybe even to do useful work, like building mass transit)?
The $33.5 billion "supplemental" war budget the House just passed
would pay a lot of wages and salaries - more than it's doing through the
profit-heavy "defense" industries.<BR></BLOCKQUOTE>
<DIV>Well, of course I agree with you here. But apparently a majority
of Americans don't....or at least our "leaders" don't.</DIV>
<DIV> </DIV>
<DIV> </DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #ccc 1px solid; MARGIN: 0px 0px 0px 0.8ex; PADDING-LEFT: 1ex"
class=gmail_quote>We need a movement (in any political party) that demands
the federal government provide a living-wage job to anyone who wants one.
</BLOCKQUOTE>
<DIV> </DIV>
<DIV>Though I think your suggestion here is overly simplistic, it would be
lovely.</DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #ccc 1px solid; MARGIN: 0px 0px 0px 0.8ex; PADDING-LEFT: 1ex"
class=gmail_quote>
<DIV class=im>On 7/14/10 9:02 PM, John W. wrote:<BR></DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #ccc 1px solid; MARGIN: 0px 0px 0px 0.8ex; PADDING-LEFT: 1ex"
class=gmail_quote>
<DIV class=im><BR>On Wed, Jul 14, 2010 at 8:36 PM, C. G. Estabrook
<<A href="mailto:galliher@illinois.edu" rel=nofollow target=_blank
ymailto="mailto:galliher@illinois.edu">galliher@illinois.edu</A><BR></DIV>
<DIV>
<DIV></DIV>
<DIV class=h5><mailto:<A href="mailto:galliher@illinois.edu"
rel=nofollow target=_blank
ymailto="mailto:galliher@illinois.edu">galliher@illinois.edu</A>>>
wrote:<BR><BR>[And no one believes any more that the Democrats will
provide that. People<BR>are beginning to notice that the war is making
us poor. --CGE]<BR><BR>I think not, Carl. The reality is that war
generally creates jobs but adds<BR>to the deficit. America's loss
of jobs over the past 30 years is due, not to<BR>war, but to other
factors beyond the scope of this post. Since according to<BR>the
poll Americans are much more concerned about jobs than about the
deficit,<BR>this would support the very opposite of your tortured
reasoning.<BR><BR>Americans Really Care About Jobs; Deficit, Not so Much
By: Jon Walker<BR>Wednesday July 14, 2010 8:01 am<BR><BR>While
collective deficit hysteria fully grips Washington, what the
American<BR>people really care about is jobs and the economy. According
to a new CBS News<BR>poll, 38 percent of Americans think the most
important problem facing our<BR>country is the economy and jobs. Second
is the wars in Iraq and Afghanistan<BR>at seven percent. Health care
comes in third at about six percent, and all<BR>the way back in fourth
place, with a mere five percent, is the budget deficit<BR>and national
debt.<BR><BR>I have said it before, but since members of Congress are
descending into<BR>highly destructive deficit insanity, it needs to be
said again. The American<BR>people don’t really care about the deficit.
They consider it to be an issue<BR>that should eventually get addressed
but is a low priority right now. As<BR>common sense would dictate, with
almost 10 percent official unemployment and<BR>a serious problem of
long-term unemployment, what the American people care<BR>about is
jobs.<BR><BR>When the poll specifically asked people for the most
important economic<BR>problem facing the country, the top response,
again at 38 percent, was jobs<BR>and unemployment. That number is even
slightly higher when you consider that<BR>three percent chose the issue
of jobs going overseas. The collective topic of<BR>budget, national debt
and government spending was the top priority for only<BR>10 percent of
the country.<BR><BR>For Washington politicians to obsess about the
deficit at the expense of job<BR>creation and protection is clearly not
what most Americans want their leaders<BR>to do. Doing the opposite of
what the voters want is an even worse political<BR>move, considering
that increasing average real disposable income is a<BR>significant
predictor of how well the incumbent party will do in the
next<BR>election. So, refusing to extend unemployment insurance,
continue COBRA<BR>subsidies and provide aid to local governments to
prevent massive teacher<BR>layoffs right before an election is a bad
move for the party in power. It is<BR>even worse because the main excuse
given for the focus on the deficit, bond<BR>vigilantes, is nothing more
than a Washington, DC fever dream with no basis<BR>in reality. The cost
of American borrowing is still much lower than even a<BR>few years
ago.<BR><BR>So, this deficit hysteria is not only misguided policy and
morally cruel but<BR>also extremely bad politics. The pollsters and
political advisers who have<BR>convinced Democrats to focus on the issue
at the expense of aiding regular<BR>Americans are either secretly trying
to destroy the party or are incompetent.<BR>Either way, they should have
been fired yesterday.<BR><BR><A
href="http://fdlaction.firedoglake.com/2010/07/14/americans-really-care-about-jobs-deficit-not-so-much/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CampaignSilo+%28Jane+Hamsher+Campaign+Silo%29&utm_content=Twitter"
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