Letter to the Editor

BY DI READERS | MARCH 21, 2012 6:30 AM

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Slow march off cliff

The most important question one has to ask today: Is our economy one big bubble?

First, step back and look at the economy, and ask what is driving the economy growth. This is very simple.

It is the Federal Reserve printing exorbitant amount of currency. Personally, as a current account-trade deficit hawk, this is bad, bad news. The federal government has maxed out its credit card, and now, the Federal Reserve has the responsible of both fiscal and monetary policy.

All that is backing the Federal Reserve is faith in the federal government and our economy to uphold our financial obligations. The bad news about faith is only an emotion and not a tangible item to exchange. It all depends on the faith of individuals and countries to exchange the dollars.

But the Federal Reserve continues to print money to drive the engine of our economy, and history has not been kind to countries that have printed excessive amounts of currency.

This is a slow march off a cliff.

Marvin Reese
Tulsa, Okla.

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