Showing posts with label New York Times. Show all posts
Showing posts with label New York Times. Show all posts

Thursday, March 31, 2011

NIA Responds to Harvard Economics Professor About Inflation




The following is a presidential

address to the nation — to be

delivered in March 2026.


~ N. GREGORY MANKIW, Published: March 26, 2011

30 Mar 2011 01:05 Africa/Lagos


NIA Responds to Harvard Economics Professor About Inflation

PR Newswire

FORT LEE, N.J., March 29, 2011

FORT LEE, N.J., March 29, 2011 /PRNewswire/ -- The National Inflation Association (NIA) - http://inflation.us - today responded to an article Harvard economics professor Gregory Mankiw wrote in the NY Times yesterday entitled, It's 2026, and the Debt Is Due. In this article, Mankiw gave a hypothetical Presidential address the President of the U.S. might make in the year 2026 after a failed bond auction. Mankiw's hypothetical Presidential address takes place in a scenario where in the year 2026, the U.S. Treasury "tried to auction its most recent issue of government bonds" but "almost no one was buying." According to Mankiw's hypothetical speech, during this 2026 crisis the President will admit, "The private market will lend us no more."

Unfortunately, Professor Mankiw fails to understand that the U.S. has zero chance of surviving until the year 2026. What Mankiw predicts will happen 15 years from now is already happening today right under his nose, but somehow he fails to realize it.

The public today has already stopped buying U.S. treasuries. The Pimco Total Return Fund, which was the largest private holder of U.S. government bonds, has just reduced their holdings down to zero. The private sector was buying 30% of U.S. treasuries, but today is no longer buying at all. The Federal Reserve is currently buying 70% of U.S. treasuries. If it wasn't for the Federal Reserve buying U.S. treasuries, we would already be experiencing failed bond auctions today.

According to Mankiw, the President will say in 2026, "Today, most of the large baby-boom generation is retired. They are no longer working and paying taxes, but they are eligible for the many government benefits we offer the elderly." The fact is, the last baby-boomer turned 46 years old in 2010 and 46 is the age in which the average American reaches peak consumer spending. Therefore, even though most baby-boomers might not be retired, baby-boomer spending is now in free-fall while baby-boomers are simultaneously signing up for entitlement programs at record pace. This will begin to affect our economy today, not 15 years from now.

Mankiw's hypothetical speech has the President admitting in 2026 that we "have to cut Social Security immediately, especially for higher-income beneficiaries. Social Security will still keep the elderly out of poverty, but just barely" and we "have to limit Medicare and Medicaid. These programs will still provide basic health care, but they will no longer cover many expensive treatments. Individuals will have to pay for these treatments on their own or, sadly, do without." The truth is, if the U.S. government cut 100% of all spending except for Social Security, Medicare, and Medicaid, we would still have a budget deficit from these entitlement programs and interest payments on our debt alone. If the U.S. wants to prevent hyperinflation and survive until 2026, we need to make major cuts to these programs today. By 2026, it will be over a decade too late and these programs will no longer exist at all.

Mankiw's hypothetical 2026 Presidential address goes on to say that "over the last several years" the U.S. has experienced a "vicious circle of rising budget deficits" and "as the ratio of our debt to gross domestic product reached ever-higher levels, investors started getting nervous". Does Mankiw realize that the U.S. just reported a budget deficit for the month of February 2011 of $222.5 billion, more than the entire fiscal year of 2007? In our opinion, our budget deficits can't rise much more viciously than what they already are today, without the U.S. experiencing an outbreak of hyperinflation. We need to begin sharply reducing our deficits immediately or else hyperinflation this decade is inevitable.

Our real debt to GDP ratio in the U.S. today is already north of 500% when you include unfunded liabilities for entitlement programs, as well as other commitments like the backing of Fannie Mae and Freddie Mac. It will simply be impossible for this figure to rise much higher without the U.S. experiencing hyperinflation. NIA believes that unless the U.S. government completely eliminated Social Security, Medicare, and Medicaid, there is no way the U.S. government will be able to stay afloat for another 15 years with such an unprecedented level of debt.

In 2026, Mankiw believes the President will admit that, "Our efforts to control health care costs have failed." He suggests the President will proclaim that, "We must now acknowledge that rising costs are driven largely by technological advances in saving lives. These advances are welcome, but they are expensive nonetheless." Does Professor Mankiw own a laptop computer, plasma TV, or mobile phone? These technologies are improving by leaps and bounds yet prices are falling. Technological advances are not driving health care costs higher! It is the government's involvement in the health care sector and their failure to allow the free market to operate that is driving health care costs through the roof.

Professor Mankiw believes the President will continue by saying, "We have to cut health insurance subsidies to middle-income families." NIA believes it is the very same subsidies Mankiw is referring to that are driving health care costs sky high. It is just like in the college education industry. If the government didn't provide subsidies for students to learn voodoo Keynesian economic theories from professors like Mankiw, college tuitions would be a lot more affordable.

To solve this supposed 2026 crisis, Mankiw believes the President will announce, "We will raise taxes on all but the poorest Americans. We will do this primarily by broadening the tax base, eliminating deductions for mortgage interest and state and local taxes. Employer-provided health insurance will hereafter be taxable compensation." Although NIA believes employer-provided health insurance should be taxable compensation because it would end the employer based health insurance system and make health insurance cheaper for all Americans, we believe it will be impossible for the government to raise any additional revenues from tax increases. We are at a point where any additional taxes will drive economic activity overseas and result in less tax receipts. When hyperinflation soon arrives, taxes will become irrelevant. The government will fund over 99% of its spending by printing money and less than 1% from taxation.

Mankiw also believes the President in 2026 will, "increase the gasoline tax by $2 a gallon. This will not only increase revenue, but will also address various social ills, from global climate change to local traffic congestion." Come 2026, gasoline will probably cost $20,000 per gallon, if we are lucky. An additional $2 gasoline tax will be absolutely pointless and meaningless.

Mankiw suggests that the President in 2026 will, "secure from the I.M.F. a temporary line of credit to help us through this crisis." The I.M.F. recently sold a large percentage of its gold reserves and by 2026 will likely be broke. Even if the I.M.F. was still around 15 years from now and did provide the U.S. with a line of credit that helps it survive the crisis, the largest line of credit the I.M.F. could possibly financially provide would only support a U.S. government that is less than 1/10 of its size today. Therefore, NIA believes the U.S. government should begin dramatically reducing its size immediately, before it is in need of a line of credit from the I.M.F.

It would be nice to think that the U.S. will be able to borrow and print money for another 15 years to fund endless budget deficits and that 2026 is some magical year when all of our debts will come due. The economy does not work this way and it is disgraceful that our nation's most prestigious ivy league schools are teaching such dangerous economic principles. Considering that a large percentage of our highest ranking government officials graduated from Harvard, it really explains a lot when you look at who is teaching economics at Harvard. Mankiw is the same professor who in April of 2009 called for the Federal Reserve to implement negative interest rates. Mankiw called for savers to be punished and for all Americans with $100,000 in the bank to have only $98,000 one year later.

It is the destructive Keynesian theories of economists like Mankiw that have gotten the U.S. economy into the dire situation it is in today. Mankiw and other professors like him are brainwashing American students into believing that forcing people to spend is the key to a healthy economy and the way to solve all economic problems is to create a lot of inflation. All across America, students are graduating colleges with hundreds of thousands of dollars in debt, no jobs, and no idea of how the economy actually works. They will spend the rest of their lives paying off their debts and trying to get the false economic information they were taught out of their heads. The college education system in America is the single largest fraud that exists today, and NIA is going to expose the truth about the government's conspiracy to turn American students into debt slaves in our next feature documentary, coming in April.

It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us

About us:

The National Inflation Association is an organization that is dedicated to preparing Americans for hyperinflation. NIA offers free membership at http://www.inflation.us and provides its members with articles about the U.S. economy and inflation, daily news stories and blog updates, and important charts not shown by the mainstream media. NIA is the producer of economic documentaries that have received a combined 10 million views including the critically acclaimed 'Meltup', 'The Dollar Bubble', 'End of Liberty', and 'Hyperinflation Nation'. NIA provides unbiased reviews of the major online sellers of gold and silver bullion and also offers profiles of gold, silver, agriculture, oil, and alternative energy companies that could prosper in an inflationary environment. NIA is the creator of 'NIAnswers', the world's most comprehensive database of questions and answers about inflation, currencies, debt, and precious metals.

CONTACT: Gerard Adams, 1-888-99-NIA US (1888-996-4287), editor@inflation.us

SOURCE National Inflation Association

Web Site: http://www.Inflation.us



Thursday, September 24, 2009

"Say You're One of Them" Is a Must Read




22 Sep 2009 21:34 Africa/Lagos



Oprah's Book Club, the Progressive Book Club, Publishers Weekly, and the New York Times Agree: "Say You're One of Them" Is a Must Read

NEW YORK, Sept. 22 /PRNewswire-USNewswire/ -- Selected more than a year ago by Progressive Book Club (www.progressivebookclub.com) as one of the most important books about the realities of life for Africa's children, Uwem Akpan's acclaimed collection of stories, "Say You're One of Them", has consistently garnered high praise from the literary world. And now the book has received one of the highest endorsements possible: Oprah Winfrey has announced that it has been selected for Oprah's Book Club.


Told through the eyes of children, "Say You're One of Them"'s stories are startlingly real and compassionate as they humanize the perils of poverty and violence in Africa. The stories take place in Nigeria, Benin, and Ethiopia, and reveal in beautiful language the harsh consequences for children immersed in war-torn and impoverished Africa. Christians clash with Muslims, parents succumb to AIDS, and monstrous events ensue -- all seen here through the wide-eyed gaze of the children caught in the middle.


"This wonderful, insightful book is finally getting the accolades and attention it so deserves," said PBC president Elizabeth Wagley. "Each story has enduring resonance, a terrible beauty of its own. Together, this collection enlarges what we know of children in danger, the innocent victims of tribal conflicts, genocide, and the ravages of AIDS. These are subjects that often make people avert their eyes from the horror -- but literature like this can move us to look, to listen, and to act."


"In this collection, [Akpan's] aim seems to be to dramatize partisan hatred at work," writes Maureen Corrigan, PBC Editorial Board member and book critic for NPR's Fresh Air. "Akpan's brilliance is to present that brutal subject through the all-too-real voices of children; he never succumbs to the temptation of making his narrators endearing or overly innocent. They've seen too much to pretend purity."


About Progressive Book Club


Progressive Book Club finds and promotes important authors, ideas, and new voices. Part e-bookseller and part online magazine, the club offers a unique opportunity to buy new books and support important causes with every purchase. PBC has created a 21st-century platform that enables people to learn, connect, and engage on the issues they care about most -- while keeping progressive ideas at the center of the national debate.


Contact:
Progressive Book Club: 212-871-8210
www.progressivebookclub.com

Source: Progressive Book Club

CONTACT: Progressive Book Club, +1-212-871-8210


Web Site: http://www.progressivebookclub.com/



Nigerians Report's Editor's comment:

I am happy for Father Uwem Akpan, and for the insight of Lady Oprah Winfrey.

This is good news for us.

As already noted that “Oprah's book club is the biggest in the world with almost two million online members and books chosen for Oprah's book club invariably skyrockets to the top of the U.S. bestseller lists”. Uwem knows how best to use his fame and fortune for the glory of God.

His comprehensive education is a good vehicle for his creative genius.

Nigeria is blessed with many gifted thinkers and writers. But most of the adult population of the over 151 million Nigerians pay only eye service and lip service to art appreciation of the beautiful and wonderful works of God. Hypocrisy is common way of life among most of the so called believers.

Less than 50, 000 copies of Chimamanda Ngozi Adichie’s prizewinning books have been sold in Nigeria when over 600, 000 copies have been sold in America. I hope the millions of Catholics and Christians and other faithful citizens irrespective of their beliefs in Nigeria will buy Uwem Akpan’s book after all the praise singing.

Buy a copy to read and do not borrow it and buy more copies and give them out as gifts.

Don't forget that Jesus was a priest and a poet.
~ Uwem Akpan










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