PIA

Week in Review: Dollar's Biggest Advance Vs. Euro in 3 Years

Despite human nature wishing it could intervene for its own short-term convenience, free markets have best brought supply and demand into equilibrium through the pricing mechanism.

Central bankers and politicians should re-learn their Economics and History lessons. Their interferences, misallocations and excessive regulation have historically "aggravated" the problems they yearn to fix quickly.

Reagan's courageous re-appointment of Paul Volcker at the Federal Reserve in 1983 and his appointment of Greenspan in 1987 just prior to the October 1987 market decline are wonderful examples of enlightened and disciplined political appointments serving the nation's "long-term" interest at the political expense of "immediate criticism" from short-term and interventionist pundits.

If only Senator Obama could heed and learn from such lessons should he attain the main lever of political appointment power. Obama's proposals to nearly double the capital gains tax rate, eliminate qualified dividend tax rates, and repeal the 2003 reduction of tax rates on ordinary incomes will actually "harm" employment, incomes and savings at the very time of a slowing economy.
Unfortunately Obama's policy proposals are what one would expect from his resume of accomplished 'redistribution of incomes', 'no private sector work experience', 'no savings experience' and 'never governing any city or state'.

May SUBSTANCE prevail over FORM and RHETORIC this November.