Oil Hits $133; Fed Signals Rate Cut Pause

Wednesday, May 21, 2008

The two are linked because the Fed’s loose monetary policy has helped make the dollar so weak that it takes 133 of them to buy a barrel of oil. Global demand hasn’t helped, either. Despite acknowledging a slowing economy by cutting their growth forecast, the Fed also signaled they’re going to stop cutting the Federal Funds rate. That’s good news, but not enough to keep the specter of inflation at bay. At some point pretty soon, they’re going to have to start tightening.

Watch those inflation and unemployment numbers rise, while growth drops. It’s called stagflation. And it’s going to be ugly.


Holy Joe Lieberman: Despicable

Wednesday, May 21, 2008

I’m hesitant to give this contemptible wretch an additional platform for his traitorous sanctimony, but, then, I wouldn’t be able to write about him. Holy Joe Lieberman has got an editorial in the Wall Street Journal today attacking the Democrats, and specifically Barack Obama, for their nuanced, intelligent foreign policy positions.

He trots out the same tired policy that Republicans have been disastrously championing since Bush first instituted it after 9/11: isolate our enemies (from ourselves). Quoth Holy Joe: “If a president ever embraced our worst enemies in this way, he would strengthen them and undermine our most steadfast allies.”

How, Joe? They’d get their picture in the newspaper with Obama? Our allies would suddenly crumble in the face of a tough, undoubtedly tense, meeting? Was Arafat strengthened by meeting and failing to reach an agreement with Ehud Barak and Clinton? No, he was arguably weaker. Was Communism made lastingly popular, and our allies undermined, when Nixon went to Moscow? Of course not.

The point is that this is a specious argument made solely because it can’t be easily refuted and makes the accused sound weak. But weakness is what motivates the actions of Joe Lieberman.
Why else would he fear bringing America to a negotiating table? If America is in a position of strength (which we are, despite the neocon disaster in Iraq), then what is he afraid of? A publicity photo?

Joe Lieberman has sided with the losing team here. He should be bounced from the Democratic caucus and left the twist in the wind with his neocon allies. He is a scoundrel.