Bernanke Takes Aim at China - WSJ.com

70'S VS. NOW: Bernanke Takes Aim at China - WSJ.com

There were also comments on Bloomberg this morning that Bernanke is criticizing Administration fiscal policies (but no details or quotes).

The comparison with the 70's should be frightening.

In both cases the country was faced with tax and fiscal policies (% of GDP spent by government over 19.8% - a number which Reagan finally corrected) that were negative to growth.

In the 1970's however we had unabashed inflation, housing started low and the country was basically reasonably healthy economically - the 1960's had been a good time.

Now, 2010, we had a good 1990's, but economically the country didn't do what it needed past 2000 and was deluded with the advent of financial engineering and the housing boom to think wealth was being created - but, it was paper wealth.

The Democrats still don't think they are doing anything wrong by favoring high taxes and consumption - with huge amounts of wealth transfers via entitlements from producers (both here and abroad) to non-producers at home.

They are ignorant of making the US a business-friendly environment. This is something the Bush Administration also failed to do with its pandering to the anti-immigrant policies of the Republican right and the willingness to spend whatever revenues government could take in to support special interests in hopes of packing the Supreme Court to have it overrule Roe vs. Wade.

One look at the elections just past in California and one has to see that the Democrats that got the state into its economic mess were re-elected and thus there is little apparent awareness by average people of what to do to change things for the better.

Meanwhile, the Fed runs the money presses. Are there English bookmakers taking bets on outcomes?