Monday, July 16, 2012

Thomas Sowell on Chief Justice John Roberts

Thomas Sowell on Chief Justice John Roberts disastrous decision to betray the Constitution and hundreds of millions of Americans:

There are many speculations as to why Chief Justice Roberts did what he did, some attributing noble and far-sighted reasons, and others attributing petty and short-sighted reasons, including personal vanity. But all of that is ultimately irrelevant. 

What he did was betray his oath to be faithful to the Constitution of the United States. 

Who he betrayed were the hundreds of millions of Americans -- past, present and future -- whole generations in the past who have fought and died for a freedom that he has put in jeopardy, in a moment of intellectual inspiration and moral forgetfulness, 300 million Americans today whose lives are to be regimented by Washington bureaucrats, and generations yet unborn who may never know the individual freedoms that their ancestors took for granted.

Federal Reserve and Printing Money

The Federal Reserve does not actually physically print money, however what the Fed is doing (QE, QE2, Operation Twist, Operation Twist 2,...) has the same affect:  devaluation of the dollar.  Ben Bernanke doubles down on the curve flattener in another desperate attempt to "steer" the economy:

The central bank will prolong the program through the end of the year, selling $267 billion of shorter-term securities and buying the same amount of longer-term debt in a bid to reduce borrowing costs and spur the economy.

Very few outside of Washington D.C. are benefiting from Bernanke's policies.  As of today, real treasury yields are almost completely negative:

DATE                    5 YR    7 YR    10 YR 20 YR 30 YR
07/02/12           -1.04 -0.81 -0.50 0.10   0.51
07/03/12           -1.08 -0.82 -0.48 0.14   0.53
07/05/12           -1.12 -0.86 -0.51 0.10   0.50
07/06/12           -1.12 -0.87 -0.53 0.08   0.48
07/09/12           -1.14 -0.89 -0.57 0.03   0.43
07/10/12           -1.16 -0.92 -0.59 0.01   0.40
07/11/12           -1.15 -0.90 -0.57 0.03   0.41
07/12/12           -1.13 -0.90 -0.58 0.00   0.39
07/13/12           -1.15 -0.91 -0.59 -0.01 0.38
07/16/12           -1.18 -0.94 -0.61 -0.02 0.37

                   Monday Jul 16, 2012, 4:20 PM