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April 21, 2014

Andrew Silow-Carroll: Passoverkill? Suggestions to make next year's seders even more culturally sensitive

Sara Israelsen Hartley: Seeking the Divine: An ancient connection in a new context

Christine M. Flowers: Priest's execution in Syria should be call to action

Courtnie Erickson: How to help kids accept the poor decisions of others

Lizette Borreli: A Glass Of Milk A Day Keeps Knee Arthritis At Bay

Lizette Borreli: 5 Health Conditions Your Breath Knows Before You Do

The Kosher Gourmet by Betty Rosbottom Coconut Walnut Bars' golden brown morsels are a beautifully balanced delectable delight

April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review Nov. 22, 2010 / 15 Kislev, 5771

Most dangerous man in America?

By Jack Kelly

>



http://www.JewishWorldReview.com | He's a soft spoken, mild mannered academic who means well (I think). But he could be the most dangerous man in America.

He is Ben Bernanke, formerly of Princeton, now chairman of the Federal Reserve Board, and he is making most of us poorer. The Fed has the power to manipulate the money supply, which is a dangerous power for government to have.

"Government," said the economist Ludwig von Mises, "is the only agency which can take a useful commodity like paper, slap some ink on it, and make it totally worthless."

Mr. Bernanke's plans for "quantitative easing" (creating money out of thin air) won't make our dollars worthless. But it will make them worth less -- about 20 percent less, thinks Bill Gross, manager of the world's largest mutual fund.

When more dollars chase fewer goods, prices go up, especially for commodities we have to buy, such as food and gasoline.

By devaluing the dollar in relation to other currencies, supporters of quantitative easing (QE) hope to make U.S. manufactured goods cheaper for foreigners to buy. (One reason why we have such a huge trade deficit with China is because the Chinese keep their currency -- the renmimbi -- artificially low.)

But devaluation spurs a competitive race to the bottom that ends badly, and jeopardizing the dollar's role as the world's reserve currency could have ominous consequences.

"Overseas -- as a consequence of a more expansive U.S. monetary policy and other distortions in the international monetary system -- we see an increasing tendency by policy makers to intervene in currency markets, administer unilateral measures, institute ad hoc capital controls, and resort to protectionist policies," said Kevin Warsh, a member of the Fed's governing board.

Supporters of QE also hope to create a "wealth illusion" by keeping stock prices artificially high. (Colin Barr of Fortune noted Nov. 9 stocks are trading around 21 times cyclically adjusted earnings. The long run average is 16.) The theory is stockholders will think they're wealthier than they actually are, and spend more, thus boosting the economy.

"Increased spending will lead to higher income and profits that, in a virtuous circle, will further support economic expansion," Mr. Bernanke said.

But cheap money creates stock market bubbles, like the housing bubble whose bursting is chiefly responsible for our economic troubles today.

Another problem, noted Richard Fisher, president of the Federal Reserve Bank of Dallas, is that many investors take Mr. Bernanke's cheap money and then "invest it abroad where taxes are lower and governments are more eager to please."

But the fundamental problem, says John Tamny, is "the wealth effect (Bernanke) naively believes to exist is non-existent."

"If shareholders exchange shares of increasing value for dollars in order to consume, the seller's dollar bonanza is naturally matched by the buyer's reduced cash position," said Mr. Tamny, editor of RealClear Markets. "These things even out, with no increase in consumption."

Even if there were such a thing as a wealth effect, it would benefit chiefly the wealthy, because only they own enough stock to feel it. The top 20 percent own 93 percent of America's wealth (stocks, bonds, real estate), according to William Domhoff, author of "Wealth, Income and Power."

The destruction of purchasing power by QE will clobber the 80 percent of Americans at the bottom of the pyramid. Financial writer Charles Hugh Smith estimates QE will cost American households $4.6 trillion.

Mr. Smith may exaggerate. But QE has never worked. The Japanese tried it in the 1980s. Their economy is still mired in slow growth. Mr. Bernanke tried it two years ago. Our economy is still so sickly he's trying it again.

Mr. Bernanke is trying to solve with a reckless monetary policy a problem caused by feckless fiscal policy. Banks have money to lend. Corporations have money to spend. But they aren't lending or spending because of the uncertainty caused and the harm done by the Obama administration's tax, spending and regulatory policies, which have created the most hostile environment for business in our history.

Foreign leaders are as appalled by the policies of Mr. Obama and Mr. Bernanke as the Chamber of Commerce is. "Obama's Economic View is Rejected on the World Stage," headlined the story in the New York Times on the G20 summit.

Let's pray those policies are changed before catastrophe ensues.

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.

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JWR contributor Jack Kelly, a former Marine and Green Beret, was a deputy assistant secretary of the Air Force in the Reagan administration.

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© 2009, Jack Kelly

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