Wednesday, November 10, 2010

Where Are the Unions On Quantitative Easing Deux?

The two greatest costs facing the United States in the near future are unfunded pensions that have been promised to government workers led by unions, and overspending of states. Six months ago on my very popular Internet radio show Nick Nation, I mentioned that you could stop this bleeding by taxing and withholding on government pay and pension checks at the source and using the funds to directly reduce the state or federal debts. This would be a way around the government union contracts and could eliminate going into bankruptcy, thus not jeopardizing state bond ratings and the ability to borrow for future projects and financing the debt that’s already on the state’s books.

With the ongoing move by the Federal Reserve to devalue the U.S. dollar in what is called Quantitative Easing 2, they are, in essence, destroying the value of a government worker and retiree’s check. It was no surprise that in New Jersey when the new Governor Chris Christie attacked the union contracts he was fought tooth and nail when he suggested cuts. They went as far as to threaten his life before it was all over.

Now, where are the unions when the Federal Reserve with one fell swoop gives them a pay and retirement cut by devaluing their checks? Why aren’t they demonstrating outside the Reserve? Why isn’t the SEIU out there taking bus tours to all of the members' homes with loud speakers? Are they ignorant to what’s happening to them? Probably. Is the President they love so much causing this devaluation? So why aren’t they outside the White House demonstrating against the “chosen one?” The people who run the unions are not stupid and they have professionals that run all aspects of their operations and yet they turn the other way while all of this is going on.

Could it be that the fix is in and that the Federal Reserve and the unions see the handwriting on the wall? Do they already know that the American economy is toast and that the American standard of living is about to experience a shock to the system that will leave it looking more like Russia than “The City on a Hill?” Time will tell, but in the meantime America seems to be going through a sausage machine with an outcome that won’t be recognizable.

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