A Non Economist Wonders Why?

Below is a record of the changing federal funds rate.  That’s the rate most publicized on news broadcasts when there is a report about the Federal Reserve Board.  It is the interest rate at which private depository institutions (mostly banks) lend balances (federal funds) at the Federal Reserve to other depository institutions.  Changes in this rate frequenlty cause the stock markets to react in an extreme manner.

Going back to October 2001 the chart indicates how the Federal Reserve Board has changed rates too often and too steeply.  The 5.25% rate was maintained for 10 months.  It was reported that the reason was the Fed wanted to fight inflation.  Overall inflation from 2005 to 2006 was 3.2% and from 2006 to 2007 was 2.8% (data from the Bureau of Labor Statistics).Now we face the consequences of the Feds focus on inflation.  Obviously the radical movement was started during Alan Greenspan’s leadership at the Fed and has continued under the control of Ben Bernanke.Inflation (and deflation) ought to be the major concern of  the Federal Reserve.  Alan Greenspan voiced concern about this issue almost all the time that he was chairman of the Federal Reserve.  Current Federal Reserve Chairman Ben Bernanke also voices the same concerns.  The reality seems to be that Wall Street bankers are more of a concern than any other issue.  Increasing inflation is obviously is occuring but at the same time Wall Street banks are taking a terrible hit due to their bad judegement in the sub-prime mortgage business. http://apnews.excite.com/article/20080227/D8V2QCCG0.htmlSo who is being bailed out?  It certainly is not the average American.                                                

Federal Funds Rate

Date	Change (Basis Points) Increase     Decrease		Level (Percent)
2008 January 30 January 22	… …	50 75	3.00 3.50
2007 December 11 October 31 September 18 August 7 June 28 May 9 March 21 January 31	… … … … … … … …	25 25 50 … … … … …	4.25 4.50 4.75 5.25 5.25 5.25 5.25 5.25
2006 December 12 October 25 September 20 August 8 June 29 May 10 March 28 January 31	… … … … 25 25 25 25	… … … … … … … …	5.25 5.25 5.25 5.25 5.25 5.00 4.75 4.50
2005 December 13 November 1 September 20 August 9 June 30 May 3 March 22 February 2	25 25 25 25 25 25 25 25	… … … … … … … …	4.25 4.00 3.75 3.50 3.25 3.00 2.75 2.50
2004 December 14 November 11 September 21 August 11 June 30	25 25 25 25 25	… … … … …	2.25 2.00 1.75 1.50 1.25
2003 June 25	…	25	1.00
2002 November 6	…	50	1.25
2001 December 11 November 6 October 2	…	25 50 50	1.75 2.00 2.50

With Enough Military Might We Can Bring Peace to Iraq

The Associate Press reported “Rockets or mortars hit the U.S.-protected Green Zone early Saturday, just a day after powerful Shiite cleric Muqtada al-Sadr ordered his Mahdi Army militia to extend its cease-fire by another six months.”

The pathetic reality is that we still have not brought real peace to Iraq.  We have all heard enough commentaries and evaluations from reporters visiting Baghdad to understand that country as if we had been there ourselves.  George W. Bush will most likely respond to the latest violence by maintaining the current level of military manpower.

John McCain’s pledge to keep Americans in Iraq for a hundred years if necessary, are the words of a man who believes in an American empire.  There is no proof that our army in Iraq has made the United States any safer.  To the contrary Iraq has become the training ground for terrorists.

Military oriented people like John McCain support this “arms makes right” philosophy.  Many Americans agree with this idea.  Even if  John McCain is correct in keeping troops there for the sake of peace is it worth the lost life and money spent?

Primary Madness

I am a political independent and a moderate. The California registration form asking your party designation calls it “decline to state” if you are not joining any party.  Almost 20% of us Californians are in this category.  The reason I changed to an independent is that I found myself disagreeing with many Democratic party views.  That percentage “decline to state” people has doubled in the past ten years.  It’s no wonder that this has happened.  The state legislature has been incompetent for years.  Our state has been mismanaged by both political parties.

Right wing members of the Republican party need to understand that this is a democracy.  Americans accept the results of the ballot box.  So James Dobson, Rush Limbaugh, Sean Hannity, and all the rest of you right wing leaders(?) get over it.  The vote is in.  Unless Mike Huckabee accomplishes an extraordinary rise in popularity John McCain will be your party’s candidate.  That is a good thing because moderates like me will consider voting for him.  In other words you have a chance at holding on to the presidency.

Democrats also need to accept the wishes of the voters in their primaries.  Super delegates who can vote without regard to the wishes of the voting public should not have the power to determine the candidate.  Where is the democracy in that process?  Both Hillary Clinton and Barack Obama are viable candidates.

Talk show hosts need to “calm down” as John McCain has stated.  The also should control their sentiments and provide more “fair and balanced” coverage of the political races.  The could attract for more listeners and viewers if they followed this advise.

Rabbis, ministers, and preachers and their groups should stay out of politics.  Religious differences can destroy a nation.  Iraq is a good example of the strife that those differences can bring.  Separation of church and state ought to be honored by everyone.