Politics takes center stage

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We’ve come over to see for ourselves. Each day, the media reports on riots, arson and looting in the French capitol. The post Politics takes center stage appeared first on Fat…

Core consumer price inflation is still running hot, at around 3.7%, according to the latest figures from the Bureau of Labor Stastics. Despite national gas prices falling around 16 cents on average in the last week, the only component of CPI that isn’t rising above the Fed’s 2% target is ‘used cars.’ Lower oil prices this month may show up in next month’s figures. Stocks opened lower.

After so much ‘incendiary’ coverage, we half-expected to find the city in ruins…a smoking cinder, like Gaza with an Eiffel Tower. But when we drove into the center of the city last night, we saw nothing unusual.

And this morning…all is calm, under rainy skies. This is the best season to visit Paris. The tourist crush is passed. The summer heat is no more. The restaurants have empty tables. And a cozy mist collects on the window panes.

The real problem for France is money. ‘Le spread,’ they call it. It’s the difference between the interest rates France has to pay to borrow money…compared to what the Germans pay.

To make a long story short, the French are in much the same situation as Americans. They owe too much money; and carrying debt is getting more and more expensive.

Back in the USA, politics has taken center stage. There too, the problem is largely a matter of money.

Politics is a win-lose racket. In today’s American democracy, if you can win an election, you will have immense power. The US economy is about $32 trillion in GDP. About half of it is either directly or indirectly under political control.

In a nutshell, the political winners take the money and (within limits) do what they want with it. Most often, the voters are only dimly aware of what happens to it…and they only voice a serious concern when the most outrageous programs are shoved under their noses. ’ Pew Research:

Another deeply unpopular government program is using inflation to pay for excess government spending. Charlie Bilello:

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