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Letters to the Editor

Readers write about inflation, tax havens, and Internet speeds.

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Slow the growth of America's money supply

Regarding your June 9 editorial, "Had enough of high prices?": The article fails to take the real cause of inflation into consideration – that is, a rise in the supply of money. It's no small surprise that the Fed stopped publishing M3 monetary statistics in March 2006. That measurement was the single most valuable indicator citizens had to measure growth in the nation's money supply.

Rising prices are the symptom of inflation, but they are not the cause. It's important that people understand the difference between price inflation and monetary inflation.

Monetary inflation (rise in money supply) comes first, the effects of price inflation are felt later.

If we want to get to the real cause of this problem, we have to rein in our unbridled growth in the money supply.


Can foreigners evade tax in the US?

Regarding David Francis's June 9 commentary, "With $100 billion lost, US tolerance for tax havens erodes": Here in Panama, sometimes accused as a tax haven, we read these views with some interest.

The piece should have pointed out that the United States is the world's greatest tax haven. Foreigners (except Canadians) invest there in banks and the stock market free of US tax and in total confidentiality.

The US government doesn't even know who the foreign investors are and do not, in any case, reveal their earnings to foreign governments seeking to tax them. Additionally, many US state corporation laws and regulations have virtually no control or oversight and so are tailor-made for laundering money, whether to hide it from US authorities or from foreign government tax collectors.

Something seems very unfair when a nation like the US, with its $13 trillion economy, takes smaller nations – read, competitor nations – to task for their financial policies and regulations that in most cases are nothing more than ones that mirror US practices. This is simply "might makes right," and "do as I say, not as I do."

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