Euro May Rise to $1.60 Due to Austerity: Economist

“a group of logistics officers at the Industrial College of the Armed Forces developed a national security strategy as a class exercise. Their No. 1 recommendation for maintaining U.S. global leadership was “restore fiscal responsibility.”

Sec. of Defense Gates also got involved. All of them seriously misinformed, and think “fiscal responsibility” equals strangling a growing economy with a fixed currency supply. It’s a crisis of misinformation. Logistics training obviously doesn’t prepare one for sound systems, operations, ecology or macroeconomics analysis. You have to wonder if they’ve all adopted the “Scorched Economy” security model from Peter-the-Not-so-Great.

New Obama security strategy hardens economic resolve

“If you owe all this money you become less independent in the broader sense because you have to worry about where you are going to raise the next loan,” he said

3 Responses

  1. “If you owe all this money you become less independent in the broader sense because you have to worry about where you are going to raise the next loan,” he said

    Who is “he”? He is Reginald Dale, not the President.

  2. Geez, if this the Pentagon’s best and brightest, the US is in deep doo-doo. They don’t seem to have a clue as to how the monetary system works.

    Maybe this is disinformation meant to throw the enemy off? 🙂

  3. If you owe all this money you become less independent in the broader sense because you have to worry about where you are going to raise the next loan,” he said.

    So stop worrying, the answer is and has always been 20th Street and Constitution Avenue NW (new phone number though).
    http://www.ibiblio.org/hyperwar/ATO/USGM/FRS.html

    Honestly, if these idiots had been in charge during World War II, America’s No. 1 export today would be Japanese Army comfort women.

    The Fed surrendered its independence during World War II to help the Treasury finance the war effort. In April 1942 the Fed agreed to keep the interest rate on Treasury bills fixed at 0.375 percent per year by buying or selling T-bills offered or demanded at that rate… The Fed also agreed to enforce a ceiling of 2 1/2 percent on longer-term bonds by buying (that is, monetizing) bonds if necessary to defend the rate ceiling.
    http://www.minneapolisfed.org/publications_papers/pub_display.cfm?id=3353

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