Wednesday, August 3, 2011

Herman Cain - Uncommon Man, Common Sense Solutions

Note to the readers - Eternally Vigilance officially endorses Herman Cain for the 2012 Republican nomination for president of the United States.

What follows is my response to an Australian friend who expressed a specific concern about whether Mr. Cain would actually be able strengthen the US dollar (USD), which has seriously sagged in relation to his home currency, the Australian dollar (AUD). I shared my view of the US economy and then offered Herman Cain as a solution.

The problem here is that we've got this big-government (I started to call him Keynesian, but John Maynard might turn over in his grave were he to be blamed for Obama's mess) wacko in the White House who has spent 7tril USD in two years against a little over 4.5til in receipts.

Also, under the guise of saving the economy and preserving various business and industrial sectors, our central bank (Federal Reserve) and Treasury have monetized the federal debt by buying hundreds of billions in bad loans and commercial paper, inflating the currency with trillions of dollars created out of thin air in order to cover these purchases and maintain liquidity for the credit markets. Add to that a massive trade imbalance and you get the flight to gold and other commodities and other currencies, while the USD collapses in value.

None of Mr. Cain's "Common Sense Solutions" are particularly radical. They've worked in other countries where they've been implemented or when they have have been implemented here in the US in the past. I believe that Mr. Cain's common sense soluions would definitely yield postive outcomes to stabilize the our economy and, as a result, strengthen the USD as well. Obviously it would help if there were a conservative sea change in the composition of the US House of Representatives and Senate.

Herman Cain is a man of courage, character and conviction, who enjoys credible and documented success in life and business. He's the most capable and qualified of all the candidates in the Republican field. Given that practical majorities of the 435 members in both houses would be willing to put the country first and work with him, I am confident in Mr. Cain's ability to lead the biggest turn-around in his 40-plus year career.

Eternal vigilance is the price of liberty, though the election of Herman Cain to the presidency of the United States might afford us a minute or two to relax....

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