Press Esc to close

Welcome to Money Morning - Only the News You Can Profit From.

Close

Welcome to the "Wolf Creek Pass" School of Monetary Policy

I don’t know if you folks remember that hit ditty: a humorous tune about two truckers attempting to manhandle an out-of-control 1948 Peterbilt down the “other side” of Wolf Creek Pass – a death-taunting section of U.S. Highway 160 where the elevation drops a hefty 5,000 feet in a relatively short distance.

The song’s two characters – a truck driver named Earl and his brother, who’s his partner as well as the song’s narrator – are taking a flatbed load of chickens on a speedy trip down this winding, two-lane Colorado highway. After the narrator gives Earl the above-mentioned warning, the ancient semi’s brakes fail.

From there on down, the narrator tells us that the brothers’ trip “just wasn’t real pretty.” The truck careened around hairpins and switchbacks, and then raced at an uncontrolled 110 mph toward a tunnel with “clearance to the 12-foot line” – with chicken crates sadly “stacked to 13-9.”

The drivers and the runaway Peterbilt “went down and around and around and down ’til we run outta ground at the edge of town… and bashed into the side of the feed store – in downtown Pagosa Springs.”

Believe it or not, I started thinking about this funny old country tune the other night – right after I’d read a piece about QE3 and the U.S. Federal Reserve.

As zany as it first sounds, the parallels are striking.

  • Featured Story

    Obama's State of the Union Address Was Short on Math

    The 2013 State of the Union Address was high on rhetoric... but fell short in two other areas.
    As with most Obama speeches, it was beautifully delivered. However, even where I agreed with some of the ideas, I couldn't quell a nagging suspicion that some of the numbers he was spouting simply didn't add up. And let's face it, some of the ideas in the speech were just plain bad.
    President Obama was even bold enough to claim, "Nothing I'm proposing tonight should increase our deficit by a single dime." Then he let loose with a list of new initiatives!
    Put politely, Obama's math simply doesn't add up...
    Read More...
  • president obama state of the union transcript 2012