Matt Towery

While reviewing an archive of my past Creators Syndicate columns for another project I'm working on, I discovered this from a Florida Times-Union clipping from about two years ago:

"Don't look now, but America's housing market is on the edge of a precipice. More ominous still is that it's not just the houses themselves that are a concern...The financial foundations may not be able to bear the weight of their debt."

Believe me, I don't want any reward for having been on to something ahead of most of my national colleagues. And -- naturally -- I found a column just weeks later in which I wrote that President Bush wasn't doing so bad! So I'm not bragging. In fact, I'm scared to death.

This week, the federal government went back to its same old playbook and pumped $280 billion into the financial community to create instant additional liquidity. Only now are we learning that many analysts suspect that the move was made to rescue a specific major financial institution that might have been on the brink of insolvency.

The last time I wrote about the government's practice of simply pumping more dollars into the market to prop up the economy, I sounded to some like one of those conspiratorial types who believes a handful of individuals run the world and that we should all have gold buried in our backyard.

Well, boot the "conspiracy nut" labels. Let me cite the Times of London's online edition of March 13, 2008. It quotes an analyst on the failure of the latest cash infusion to lift the stock market beyond a one-day bounce. The analyst, fearful that at least one or more major financial institutions will go under, says that maybe a standard playbook answer is no longer an option. "The Fed just can't keep printing money," he wrote.

Coming from a family that was for decades in the printing and publishing business, I can tell you that it is an amazing sight to look down a row of massive presses all operating at one time. The noise is awesome. The smell is one that only a person with ink in their veins could love. For me, seeing such a sight meant that we were making money. The value of whatever came off that press, be it a corporate annual report or an ad campaign for a retailer, had value because it was backed up by the dollars we would be paid for producing the product.

But imagine that you are standing watching rows of presses, some as long as a house, printing not books or catalogues or advertisements, but dollars. Just as in the world of commercial printing, the price of the product being printed goes down with each additional unit you print.


Matt Towery

Matt Towery is a former National Republican legislator of the year and author of Powerchicks: How Women Will Dominate America.
 
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