That’s what the group of global financial egg-heads like Timothy Geithner are looking to avoid. The group of 20, G-20, ended their two-day meeting in South Korea Saturday with nothing to show for it but words that express a need for some way to prevent that from happening. On the positive side, there seemed to be more faith in a free market than a government manipulated one to manage the global economy.
The grouping, which accounts for about 85 percent of the global economy, said in a statement that it will “move towards more market determined exchange rate systems” and “refrain from competitive devaluation of currencies.”
The agreement comes amid fears that nations were on the verge of a “currency war” in which they would devalue currencies to gain an export advantage over competitors – causing a rise in protectionism and damaging the global economy.
Funny how Geithner’s position on free markets changes when he goes abroad. Considering the negative attitude that Geithner and his boss have over free markets here, is there any doubt that we are looking at our future with headlines like these?
With our debt sitting squarely on the shoulders of future generations of Americans, much of which is owned by China, it’s time for a new dynamic. Something that will maximize business opportunity and job growth. Something that will grow the private-sector economy. Given that the devaluation of the dollar is not a matter of if but of when, the imperative has to be growing the economy, not government.
That new dynamic is a bold replacement of our current tax code. The current tax code taxes work, investment, and productivity, everything we want, to one that only taxes consumption. It is called the FairTax.
Implementing the FairTax does not increase the debt. Aside from being progressive in nature, it will attract new international business and bring back trillions of dollars of business capital that has fled this country because of the current tax code. Putting $10-15 Trillion to work in the United States, in other words, letting the market drive the economy instead of politicians in Washington, is the best way to hedge against the devaluation and hyper-inflation that may follow.
And speaking of the FairTax, Gov. Huckabee challenges anyone in Washington to a debate about the merits of it.