Peter Morici is a professor at the Smith School of Business, University of Maryland, and former Chief Economist at the U.S. International Trade Commission.
Growth is too slow and unemployment is kept unacceptably high by surging imports, especially from China and Germany, which enjoy undervalued currencies.
Ben Bernanke is right. Germany shouldn’t blame easy money in the United States for the world’s woes. Currency mercantilism in China and elsewhere is causing a mess—especially in the United States.
The Irish banking crisis illustrates the euro makes little sense, because the EU lacks taxing, spending and regulatory authority critical to managing a modern economy.
Despair grips the nation, as nearly 15 million are counted as jobless and many more languish in part-time employment. Free trade with China, flawed energy policies and pandering to Wall Street are destroying American prosperity.
Core private wage earners must be added to pay taxes for new positions mandated by new federally subsidized health benefits, financial sector regulations, and alternative energy technologies, or the federal deficit will fly into orbit; nevertheless, new tax-paying jobs are simply not materializing in sufficient numbers.
Democrats are pulling up in the polls—though not doing well, they are doing less badly. Prospects for a Republican sweep seem less likely than two weeks ago, and the Republicans have only themselves to blame.
Gold is approaching $1300 an ounce for good reason. The Obama Administration has flooded the world with greenbacks and Treasuries, global investors have little confidence in the management of the U.S. economy, and investors have taken refuge in gold.