How many of you know Gary North?

[Aaron Clary's saying that Mountain Dew is what he has for breakfast! Hahaha!]

Recent email exchanges tell me that I need to post a bit of his writings:

TOSSING GREENBACKS INTO THE TAR PIT

We are told by the Administration that today's
estimated Federal budget deficit of $296 billion is a
triumph. The decrease is based on rising revenues, which
are narrowing the gap with rising spending.

In short, economic growth is raising revenues. But
can this economic growth be sustained? The Federal Reserve
is now tightening the money supply -- actually shrinking it
(May 24 to July 20). If you don't believe me, look at the
statistics for the adjusted monetary base, the only
monetary aggregate that the FED controls directly.

http://snipurl.com/fedcharts

At the same time, price inflation is rising. This is
the effect of previous monetary inflation. The Median CPI,
which is the statistic that I use to monitor the price
level, rose in June by .4% over May, which in turn had
risen by .4% over April. Year to year, the figure is up by
3.2%. This figure is accelerating. It was up by 2.5%,
January to January.

The FED's present monetary policy is designed to
reduce that rate of increase. The means of reducing price
inflation is to cut monetary inflation. This policy raises
short-term interest rates. Eventually, given the weak
recovery of the economy since late 2001, this policy will
produce a recession. That will end the rise in Federal
revenues. The Federal deficit will expand -- this time
from the range of $300 billion a year.

An inverted yield curve occurs when the short rate is
higher than the long rate. This is the single most
reliable indicator of a coming recession. The yield curve
today is almost flat: a shrinking gap between 90-day T-
bills (rising) and 30-year T-bonds (falling).

http://snipurl.com/yieldcurvedata

The FED is making one last stand, like Custer, against
price inflation. It is guaranteeing a recession if it does
not retreat from this policy -- a policy that can save the
dollar by allowing the American economy and the world
economy to sink into recession. Nobody believes that
Bernanke will hold to this policy of stable money when the
Dow Jones Industrial Average falls by 2,000 points.

That is the home front. Now let's look at the
situation in Iraq.
...

If you've paid attention, you've downloaded where that's going. North is a Christian Austrian given to expicating the nexus between those philosophies.

And if you think that's weird, check out Robert Ringer's explication of the nexus between Buddhism and Austrianism.