Letter to the Editor that was printed 3/30/09

The letter below was printed on 3/30/09 in the (Easton, MD) Star-Democrat newspaper.

----------------------------------------------------------------------------------

To the Editor:

I really don’t understand why the media is devoting so much page space to the AIG bonuses blowup. The way I figure, the total sum of $165 million amounts to about fifty-five cents for every American. Big deal.

Sure, I understand how angering it is to taxpayers to learn this is how our money is being used.

But in the grand scheme of things, a much bigger story was all but ignored by the media.

At the same time as the bonuses story broke, the Federal Reserve announced that it would create $1 trillion out of thin air.

Creating a huge sum of money like that will impact all of us a lot more than the two quarters and a nickel AIG issue.

When new money is created, existing money loses some of its value. Over time, the impact of this is seen in prices going up, with our salaries not keeping pace.

This is a classical case of government causing inflation (if you think creating $1 trillion is a lot, consider that the Feds have about $50 trillion in unfunded obligations to Social Security and Medicare that has to come from somewhere….Do I hear the hum of the printing presses working overtime?).

So I want to thank the media for falling asleep on the job and not devoting as much attention to the real issue as you did to some sideshow. You are definitely doing a great job.




Michael Andersen