Commentary

moneyNational Review, the putative voice of political conservatism, continues to flack for the Federal Reserve and Fed chief Ben Bernanke's latest round of money magic known as "quantitative easing," or QE2.

Writing in the Wall Street Journal, chairman emeritus of the Hoover Institution, Kurt Hauser, strongly disagreed with the Obama administration’s claim that by raising taxes on just the top two percent of all taxpayers there would be a significant increase in tax revenues to the government. He claimed that Hauser’s Law would limit any anticipated increase in revenues, and it might even reduce them.

The long-awaited international renunciation of the dollar has begun.

China and Russia, who have been agitating internationally for several years now for alternatives to the U.S. dollar as the world’s reserve currency, have announced that they will no longer rely on the dollar in bilateral trade. Instead, the two Asian giants, whose respective economies have boomed in recent years and whose cross-border trade has swelled proportionately, will now use each another’s currencies for cross-border commerce.

White House deficit commission co-chairman Alan Simpson spoke at a Christian Science Monitor roundtable on Friday morning saying, “I can’t wait for the blood bath in April. It won’t matter whether two of us [on the commission] have signed this or 14 or 18. When debt limit time comes, they’re going to look around and say, ‘What … do we do now? We’ve got guys [House freshmen] who will not approve the debt limit increase unless we give 'em a piece of meat, real meat, off of this package.’ And boy the blood bath will be extraordinary.”

When Anthony Mason, CBS News' senior business correspondent, visited the Treasury Room, he called it the location of “essentially the American credit card machine.” It’s where traders buy and sell United States’ treasury bills, notes, and bonds in order to finance government operations. Mason’s revelation was profound: "I found that room kind of spooky. If we can’t [sell] those IOUs — which keep the government running on a day-to-day basis — then we can’t run the country anymore. We [won’t] have the money."

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