US Stimulus Goes Overseas

The other morning, Erin Burnett of CNBC said on "Morning Joe" that Bernanke and the Fed had generated about 20% of additional cash, but the economy had grown only about 2%. The implication is that the quantitative easing is not working. So where did the money go?

Businessweek last week said:

Federal Reserve Chairman Ben Bernanke has tried everything to feed the U.S. economy the liquidity it needs to revive. In the process, he has conjured up more than $1 trillion of fresh monetary stimulus out of thin air. Inevitably, much of it has ventured overseas in search of yield. The big beneficiaries have been the stock markets of the emerging-market economies.

So while Bernanke is pumping out cash, the main beneficiaries are sending that cash overseas to emerging markets. That is a problem with a concentration of wealth. The very rich, who are the main recipients of the cash, are not investing or spending in America. They are investing overseas. This tends to drive down the dollar, which offends the other countries, whose currencies are driven up, thus making their exports more expensive and harder to sell, etc. It will be an issue at the upcoming G-20 meeting.

If the rich were loyal Americans, like those running corporations for a generation after World War II, Bernanke's largess would stay in the US and benefit Americans, not Chinese, Indians and Brazilians.

Deja Vu

This 1994 Republican Congress redux is hard for me to take.

In 1994 or 1995 I was at the American Embassy in Warsaw, Poland, supposedly running a science cooperation program between Polish and American scientists. The Republicans cut off the funding although the United States had signed an agreement promising to participate for two or three more years. I was accused of being dishonest by the Polish foreign ministry. Polish scientists who lost their government funding because of the overthrow of Communism got no help from the US. Poland is now doing well, but thanks to the EU, not the US. The people who took Reagan's advice to "tear down this wall" got punched in the nose by his hard-hearted, mean-spirited Republican successors.

Then the State Department asked me to go to the embassy in Rome. As my wife and I were about to leave Warsaw, with our car packed, including two dogs, the Republicans shut down the government. Rome called and said, "Don't come." But we had nowhere to live in Warsaw, and it was cold. Eventually got Rome to agree that I could come, but I will never forgive the United States for putting me and my wife out on the street in Warsaw when I was moving because the government had reassigned me. Clearly the Republicans have no idea of what it is like to run a business and meet a payroll.

Then, when I got t9 Rome, where I had been assigned because Italy had just assumed the presidency of the European Union, one of my main jobs was to beg the Europeans for more money to meet the terms of the nuclear agreement that we had signed with North Korea, because the Republican Congress would not appropriate the funds for the agreement. The Republicans apparently decided that the North Koreans were going to violate the terms of the agreement, so the Republicans wanted to violate it first.

Republicans have no honor. Their promise means nothing. To them the word of the United States is garbage. They will sell America's honor for filthy lucre.

Swift Boaters Still Around

As a Vietnam veteran, the most unpatriotic group I know of is the group that sponsored the Swift boat ads against John Kerry. Whether Kerry was a hero or not, he went to Vietnam, and he should not have been attacked for serving his country.

The people who funded the Swift boat ads are scurrilous cowards who represent the very worst of America. While they had front men who actually served in Vietnam, I think the front men were used by the cowardly millionaires. I doubt the people funding the ad actually served, or if they did, they served in some very safe capacity.

The idea that they are now behind the flood of attack ads for the 2010 election is almost more than I can stand. The worst is that it worked. Now we will have a bunch of mean-spirited morons trying to govern the country, while it is fighting two worthless wars that they started and dealing with an economic and financial crisis that they created through their greed and incompetence. This is clearly not the greatest generation; this is a generation of draft dodgers and people who have no conception of what it means to serve their country and their fellowman. Steven Pearlstein has an excellent article in the Washington Post about what it means to serve in Congress, but I don't think they will pay any attention to it. They are too stupid and selfish, but for sure Big Brother (Fox and American Crossroads) will make sure that their friends get rich at Ameica's expense.

Jon Stewart vs. Obama

This column from the Washington Post pretty much sums up the commentary about Pres. Obama's appearance on the "Daily Show." It was Stewart versus Obama, and Stewart won. He made the President look like an ignorant fool, although the Republicans and unhappy Democrats will say that Obama made himself look like a fool.

But the problem is that Obama is not a fool. He is an intelligent guy trying to run an unruly country that is in trouble. Its business model for the last 50 years no longer works, and nobody is sure if there is a new model that can support the American lifestyle. The Republicans have a model: "Give us your money!" They want no taxes, no restraint on business. Unbridled greed is the Republican model. And for some reason many Americans like that.

Obama is trying to defend the middle and lower classes, but it appears to be a losing battle. By declaring war on Obama, Jon Stewart seems to have forgotten that Bill and Hillary failed to get any health care reform. The Republicans don't care about some compromise that might be good for America; they just want to win power. We don't have a pubic option in the health care bill because the Republicans kept it out, not because Obama didn't want it.

While Obama did not serve in the military, he did serve his community. The Republicans ridiculed his being a community organizer, but it meant that he cared about other people. When he graduated from the Ivy League, he could have gone the big money route, a Wall Street law firm, or corporate law, but he didn't. To some extent he remembered his roots. Republican roots are in the board room and the country club. The Republican establishment has no concept of serving the greater good, although many Republicans do, many of them moderates, or single issue voters on gay issues, or abortion or immigration, not focused on the overarching Republican agenda of making the rich richer. It's sad that Jon Stewart advanced this Republican agenda.