“Trade, not aid” said the current prime minister of Pakistan Nawaz Sharif. It was six years after its 1947 independence from India that Pakistan experienced a near-famine due to two failed crop seasons from lack of monsoon rains. Meanwhile, Pakistan didn’t have enough hard currency to buy wheat on the international market. The US State Department considered Pakistan on the brink of starvation, so President Eisenhower gained approval from Congress to send one million tons of wheat (known as the Wheat Aid Act), thus beginning Pakistan’s tragic addiction to US foreign aid.

From the moment it became obvious Tuesday’s Republican wave would make shore, media mouths began talking up the problems its leaders would face in converting a widespread rejection of Obama’s policies into a positive agenda. Given that the abusive centralization of power was the core of what the electorate was saying no to, leaders would do well to focus on restoring Constitutional federalism.

Jeff Peshut of RealForecasts.com  gives an insightful analysis of the likely effect of the termination of the Fed’s QE programs on TMS, the money supply aggregate formulated by Murray Rothbard and myself and regularly calculated by Michael Pollaro.