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"The government's cure is what is going to kill the economy"
Howard Richman, 5/19/2021

On Tucker Carlson's Wednesday show, Peter Schiff discussed the rising inflation. Unfortunately, the clock ran out before he had a chance to explain his last claim. That claim was that "The government's cure is what is going to kill the economy." Schiff was right when he said that. It is important for everyone to understand how the Biden administration is driving America straight to a crash:

In American Thinker on April 26, my son and I similarly predicted an economic crash when the government tries to cure the inflation. Here's our prediction of how the economy will play out:

Powell’s first four-year term at the Federal Reserve ends in February 2022. At that point, the Biden administration will likely reappoint him to a second term so that he can continue to restrict loans to fossil-fuel developers and continue to keep his feet off the interest-rate brakes.

Eventually, Powell or his successor will discover that it is a lot easier to let inflation get started than it is to bring it under control. Once the Fed puts on the brakes, Biden’s sugar high will turn into a post-sugar crash due to rising interest rates and rising trade deficits.

The worst-case scenario would occur if foreigners stop using the inflating dollar as the medium of exchange in international transactions, resulting in a crash in the dollar’s exchange rate, much higher prices for imports, and a huge cut in the American standard of living. China appears to be preparing for that scenario by rolling out a digital yuan that could be used as an alternative to the dollar for international transactions.

Since we wrote this, every trend that we predicted has been occurring:

  1. Inflation has been rising faster than expected. 
  2. The Fed has kept its foot off the brakes.
  3. The dollar has been drifting downward in foreign exchange markets.
  4. Russia has joined China's push to switch away from using the dollar for international transactions.

The Fed is blowing things big time. It should be tapping the interest rate brakes now, but it is not. 

President Biden is blowing things big time. He is simultaneously increasing Aggregate Demand (by calling for massive spending increases) and decreasing Aggregate Supply (by calling for large tax hikes). Both are fueling inflation.

But there is still hope that Congress will prevent the disaster. If it shelves Biden's proposals for additional spending and higher taxes, the inflation could be transitory. Only Congress can save us now.

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Click here to read this posting on the American Thinker website.

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U.S. Vaccines Work, Chinese are Ineffective - I'm published in American Thinker this morning
Howard Richman, 5/6/2021

So far two countries have exited the worldwide COVID-19 pandemic using U.S.-made vaccines (Israel and the United States) while two other countries have seen infection rates rising despite heavy use of Chinese-made vaccines (Chile and Seychelles).

Success of U.S. vaccines

Israel achieved herd immunity by vaccinating almost 60% of its population using the U.S.-made Pfizer vaccine. According to a chart published by Worldometer, the COVID death rate has fallen to almost zero in Israel.

Similarly, the United States exited the pandemic the week of March 20 when just 25% had been vaccinated, compared to 45% today. That was the week when deaths in the United States, according to the “Excess Deaths” statistics published by the CDC, stopped exceeding the threshold of what are considered to be a normal number.

Failure of the Chinese Vaccines

CNBC reported that Chile has been experiencing rising cases of COVID-19 despite having one of the world’s best vaccination rates. As Thomas Lifson noted in American Thinker, the CNBC article buried the fact that Chile was using a Chinese vaccine.

A similarly deceptive report came out Wednesday on the Bloomberg website, this time about the Seychelles where 62% of the population is fully vaccinated yet COVID cases are still rising. The headline of the story appeared to indicate that vaccines in general are ineffective, but, as in the Chile story, buried deep inside was the fact that Seychelles was mostly using a Chinese vaccine.

Vaccine Effectiveness

The two primary U.S.-made vaccines (Moderna and Pfizer) use the mRNA technology which is about 95% effective. The European vaccine (AstraZeneca) uses a spike protein technology that is about 70% effective. The Chinese vaccines (Sinovac and Sinopharm) use a killed viral particles technology which appears to be ineffective.

The Moderna and Pfizer vaccines were actually the second and third mRNA vaccines developed in the United States to fight COVID-19. The first was the successful Inovio vaccine which Dr. Anthony Fauci’s NIH buried in seemingly-endless clinical trials.

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Click here to read it on the American Thinker Website:

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    Wikipedia:

  • [An] extensive argument for balanced trade, and a program to achieve balanced trade is presented in Trading Away Our Future, by Raymond Richman, Howard Richman and Jesse Richman. “A minimum standard for ensuring that trade does benefit all is that trade should be relatively in balance.” [Balanced Trade entry]

    Journal of Economic Literature:

  • [Trading Away Our Future] Examines the costs and benefits of U.S. trade and tax policies. Discusses why trade deficits matter; root of the trade deficit; the “ostrich” and “eagles” attitudes; how to balance trade; taxation of capital gains; the real estate tax; the corporate income tax; solving the low savings problem; how to protect one’s assets; and a program for a strong America....

    Atlantic Economic Journal:

  • In Trading Away Our Future   Richman ... advocates the immediate adoption of a set of public policy proposal designed to reduce the trade deficit and increase domestic savings.... the set of public policy proposals is a wake-up call... [February 17, 2009 review by T.H. Cate]