DerryNews.com, Derry, New Hampshire

Opinion

December 6, 2012

Letters to the editor

(Continued)

Israel cannot count on the Obama administration to come to its aid. President Obama erroneously believes sanctions will work to halt Iran’s nuclear armaments program, and at the same time he warns Israel not to strike Iran. Obama, with his coddling of Arab countries, is not a friend of Israel.

Israel’s survival depends on military action against Iran.

Donald A. Moskowitz

Londonderry

Debt is the real threat to America

To the editor:

When Obama took office in 2009, our national debt was $10.6 trillion. In November 2012, it’s now at $16.3 trillion. This debt was funded by borrowing from the government of China ($1.2 trillion dollars), Russian, Japanese, even British taxpayers kicked in hundreds of billions. But lenders have dried up, and now the Federal Reserve is forced to buy our own bonds — in other words, we’re just printing money like Zimbabwe or Weimar Germany. This massive inflation of our money supply has kept short-term interest rates down to nearly zero. Grocery and gas prices are another matter entirely.

If Ben Bernanke wants dollars to buy any groceries at all, at some point he has to stop just printing the budget. Fed Chairman Paul Volcker was famed for “saving the dollar” under President Reagan. In order to do this, he had to reduce the rate of dollar creation, and allow interest rates to rise. By 1982, the prime rate was at 21.5 percent.

But in 1982, the Federal debt was only $1.1 trillion. Now, it’s $16.3 trillion. If Bernanke tries to save the dollar with Volcker’s interest rates, 21.5% of our current debt will be $3.5 trillion. All federal taxes combined are about $2.9 trillion. So we would have to spend more than all tax collections just on interest payments, with no budget for anything else. No defense, no Social Security, no Obamacare, no farm subsidies, no Solyndra “investments” or bank bailouts.

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