Ben Franklin Report: Caturday Reading

With Ben Bernanke's newfound affinity for nimble and flexible policy, the comparison to a cat almost seems natural. However, in an effort to help you better channel your inner cat here is some reading and food for thought.

First, usaspending.gov is a really awesome website for policy addicts out there with some dynamic ways of looking at the way that the U.S. Government spends its money, with much potential for fun and blogging. For instance, in 2007, the Federal government spent less on traditional state spending than in previous years. This continues, despite record federal deficits. As one would expect the crumbling value of the dollar is being reflected in exponentially increasing federal spending. Unfortunately, for us, the War in Iraq and the Global War on Terror are contributing, if not causing, this problem.

Here is a handy slide show from the GAO about how the government is spending its money. The numbers are pretty terrifying, especially considering that these numbers don't reflect the quicksilver economic reality that we are currently faced with, aka the increased transportation costs of gas prices going up by 25% on average. Remember when it was serious when gas reached $2 a gallon? Not to mention the fuel inefficient vehicles the military relies on aren't going to see less use in the near future. Unlike the GAO, we here at the Fringe Element feel that more constructive advice is necessary, if for nothing more than general principle. My recommendation would be to move towards an asset-based financial system, perhaps similar to Islamic banking practices, in an effort to provide some stability to the dollar to try to halt its historical slide to worthless.