Several European nations recently announced spending cuts to bring their budgets closer to balance in the wake of the current global economic recession, especially Ireland, Greece, Portugal and Spain. But Paul Krugman, the leftist Keynesian economist of the New York Times, argues that balancing budgets will lead to a new depression:
When John Hussman, in his Weekly Market Comment, noted that the Economic Cycle Research Institute’s (ECRI) Index “has slumped to the lowest level in 44 weeks and has now gone to a negative reading,” he was confirming other recent signals that the economy was giving off, notably here and here, that the possibility of a double dip recession continues to increase.
The attack on the U.S. dollar as the world’s reserve currency intensified over the weekend as French President Nicolas Sarkozy and Russian President Dmitry Medvedev openly discussed replacing the old global financial system with a new international monetary order.
The Federal Reserve’s monopoly on money and credit has caused so many problems for average Americans and the nation that addressing this issue is a prerequisite for returning the nation to economic sanity. Congressman Ron Paul has introduced a bill called the “Free Competition in Currency Act” (H.R. 4248), which would end the government-enforced monopoly by repealing “legal tender” laws, allowing private mints, and eliminating taxes on gold and silver coins.
The Obama administration is pushing for a second “stimulus” package as the amount of money flowing in the U.S. economy contracts at a pace not seen since the Great Depression, according to international news reports.