LETTERS TO THE EDITOR - Spending more money isn't solution to financial mess of country


There is so much uncertainty in the economy right now it is hard to know just what to do to protect oneself against a potential crisis in the near future.

A conservative approach for right now might suggest sitting on the sidelines with CDs and some hard money assets, strictly as insurance. Even this action is not without some risk due to the Fed's debauchery of the dollar big time, with its utilization of the printing press, along with QE 1, 2 and 3, which is causing opaque inflation and the dilution of the buying power of the dollar.

Unrealistically low interest rates contrary to normal economic operating norms, at less than one-half of 1 percent on savings is spelling disaster for seniors who are relying on interest income to survive. These folks are just now discovering that when they have used up their principle they will be added as another segment of the populace to the poverty rolls.

Flooding the market with additional dollars to prop up the stock market has buoyed Dow Jones to 12,000 when it should be running at 6,000 or 7,000 in relation to the economic stress facing the U.S. and Europe.

This then becomes a zero sum game, with the high tech, nano-second day traders as the winners and the unsophisticated average investors the losers.

These and other concerns do not even address Wall Street's unmitigated corruption regarding the totally unknown results of the $50, $100, or even $200 trillion liability of the hocus-pocus credit default swaps and derivatives that are in the pipeline.

Trying to spend our way out of the fiscal morass we are in is a fool's game and just puts us in a position that adds so much fuel to the fire it only prolongs the inevitable. These ultimate consequences dictate that our ability to avoid a total economic meltdown may be beyond salvaging unless we put the brakes on the misuse of credit both public and private, as well as corrupt, unrealistic business practices.

This will require addressing the unconscionable greed on Wall Street and the banking industry along with the elimination of irresponsible leadership in D.C.

Daryl Schreiner

Walla Walla


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