After you get past the many processes necessary to prepare the press, the biggest cost that remains is that of time and paper. That's what makes the cost of the product decline.
Similarly, the dollar is declining today. And the idea that we -- our government -- is printing on more paper and more ink doesn't give me the same happy feeling I had when it was a commercial printing product being cheaply replicated, for which my company would be paid dollars.
No, instead we are talking about the very "thing" of value to us, the dollar bill itself. It's being stretched to such a long run that its cost -- or in this case, its value -- per unit is dropping like a rock.
This is no longer some far-out discussion of "why we left the gold standard." Our nation is on the verge of a potential 1929 catastrophe; if not immediately, then in the long run.
To have the president not recognize that we are probably in a recession already, and not to recognize that gas prices could be $4 per gallon this summer, is regrettable. But Bush is political toast, and to expect that either he or Vice President Darth Vader will accomplish anything in their remaining months is hopeless.
The answer to this is in our own hands. Whatever idiotic piece of legislation your congressman or senator is working on right now, call them and ask them to put it aside.
We need bipartisan movement quickly on the issue of saving our economy.
The Fed can't keep lowering interest rates because it is not working; it doesn't reach those who need relief. Additionally, with inflation racing up the charts, the cuts will soon result in a reversal of interest-rate hikes. And the absurd concept of sending everyone a one-time check in the mail to "stimulate the economy" will lift things, oh, maybe a week or two.
Meanwhile, they'll just keep on printing money. Including the $40 million-plus it took to mail out notices to Americans, to let them know that their handout from the government will be arriving soon. Keep those presses rolling, boys.
Showdown in Jackson Hole: The Fed Challenged on its Own Turf in Wyoming by Group Likely to Finally Start Dismantling it | Rachel Alexander