Why the U.S. Can't Inflate Its Way Out of Debt

Written By Jeanne Sahadi
March 8th, 2010

It's dawning on people that getting a handle on burgeoning U.S. debt will be a long and hard process. So if lawmakers can't agree on a credible plan, some have suggested that the country could just "inflate its way" out of its fiscal ditch.

The idea: Pursue policies that boost prices and wages and erode the value of the currency. The United States would owe the same amount of actual dollars to its creditors -- but the debt becomes easier to pay off because the dollar becomes less valuable.

That's hardly a good plan, say a bevy of debt experts and economists.

Firms Get U.S. Money Despite Iran Work

March 8th, 2010

The U.S. government, while pushing for tougher sanctions against Tehran, has given $107 billion in the last 10 years to U.S. and foreign companies doing business in Iran, much of it in the energy sector, The New York Times reported on Saturday.

Despite the threat of punishment for companies that seek U.S. federal contracts while dealing with Iran, the Times said successive administrations have struggled to exert authority over foreign companies and overseas units of U.S. firms.

U.S. Tightens Missile Shield Encirclement Of China And Russia

Written By Rick Rozoff
March 8th, 2010

So far this year the United States has succeeded in inflaming tensions with China and indefinitely holding up a new strategic arms reduction treaty with Russia through its relentless pursuit of global interceptor missile deployments.

On January 29 the White House confirmed the completion of a nearly $6.5 billion weapons transfer to Taiwan which includes 200 advanced Patriot anti-ballistic missiles. Earlier in the same month it was reported that Washington is also to provide Taiwan with eight frigates which Taipei intends to equip with the Aegis Combat System that includes the capacity for ship-based Standard Missile-3 interceptors.

Kenneth Gosting, Yosemite Activist, Found Dead In Creek 

Written By Carl Nolte
March 8th, 2010

Kenneth A. Gosting, a community activist in the foothill region near Yosemite and a correspondent for a number of California newspapers, was found dead in a creek near his home in Mariposa County on Sunday.

Mr. Gosting was 63. He had served as an aide to Gov. Jerry Brown, but resigned after 20 months in 1976 in a dispute in the administration over Mr. Gosting's opposition to an emergency services bill then pending in the Legislature.

He then became a correspondent for a number of newspapers, including the Los Angeles Times, the Merced Sun-Star, the San Francisco Examiner and The Chronicle.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/03/03/BAER1CADBE.DTL#ixzz0hbaZmIUj