Sunday, May 2, 2010

Surprise, Surprise! The Cost of the Greek Bailout Rises!

To: The Wall Street Journal
Date: April 26, 2010

Dear Sirs:
For weeks your newspaper has blindly reported as fact the unsubstantiated hopes of European politicians that an EU bailout of Greece would "stop the contagion". No one ever offered one shred of theoretical evidence to support such a claim, especially when all common sense tells the average citizen that the opposite would occur. Now the EU is in the process of destroying its currency in order to pay the retirement incomes of featherbedding Greek bureaucrats. Yet this is the norm everywhere in the world, treating paper money as if it were capital in order to buy off powerful interest groups.

It is in no one's interest that the Euro or any other national currency fall, yet governments everywhere are destroying the purchasing power of their currencies. Without legal tender laws we citizens would have abandoned our national currencies for better, private ones long ago. Who will invest long term when his investment may be repaid pennies on the dollar? Since it is against the law to write contracts with gold clauses, the future value of one's invested capital cannot be predicted. Yet Keynesian economists reign supreme in the halls of political power everywhere, telling politicians exactly what they want to hear--tax, spend, and regulate.

Patrick Barron
20 McMullan Farm Lane
West Chester, PA 19382
Phone: 610-793-3605

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