Gerald Ford is a genteel politician; at least his public demeanor leaves this impression. Watching his family yesterday during the National Cathedral memorial service affirms this (apples do not fall too far from the tree in most family orchards).

During a joint session of Congress (October 8, 1974) Gerald Ford outlined his economic policy. You can read or hear his speech in the Ford Library. He makes a number of “simply stated” points.

• voters want action
• politicians seeking consensus show leadership
• policy must be part of a “grand design”
• America cannot isolate itself: “International cooperation is absolutely essential and vital.”

Front headlines and speech outlines change, but themes persist. The electorate cares about issues, and the ballot is intended to provoke government action. Voters do not agree, and our differences seem more terse currently; what we want is “action”.
Gerald Ford acknowledged different political agendas and ideas while calling for “consensus”. Instead of visceral opposition, he recommended debate toward a “grand design” to resolve an issue: inflation.

Today, Federal debate includes limiting access to our borders by outsiders, their products, and their services. Gerald Ford broadened the variables in the debate by admitting the impact of “international cooperation”. In that context, he said, “But while we seek agreements with other nations, let us put our own economic house in order.” He considered that a first step in our “global village”.

During the past year, the Governors serving on the Federal Reserve Bank showed great concern with the core inflation rate. Gerald Ford’s speech tells us that inflation damages economies, and he took the lead on the issue.

President Ford articulated the problem with oil and food costs; he also gave definitive recommendations (he acknowledged the limitations on what America could do about its petroleum appetite) for farmers to farm and Congress to overturn the restrictions that pushed food prices.

He also said, “Number two: energy. America’s future depends heavily on oil, gas, coal, electricity, and other resources called energy. Make no mistake, we do have a real energy problem.”

During 1974, the United States had spent more than 16billion dollars in energy costs over the costs for 1973. The concerns are the same; the warnings similar, and the actions consistent. For some reason, we seldom get too far with resolving the inflationary effects of oil.

At that time, Gerald Ford recommended, “cleaner coal processes and nuclear fuel in new electric plants, and the quick conversion of existing oil plants. I propose that we, together, set a target date of 1980 for eliminating oil-fired plants from the Nation’s base-loaded electrical capacity.” We have done little of any suggestions made by Mr. Ford.

One benefit of death: our funeral and burial ceremonies remind us of our folly, our mortality, and our failure to resolve what inflates us.

My son’s doctor told me that his car engine was replaced by a GM company with 80,000 miles (a few miles later and the transmission went kaphooey). The service division of this Tennessee company said, “You should have changed your oil every 3,000 miles instead of every 5,000. Unfortunately, your warranty will not cover the engine replacement cost.” This is what I call oral flatulence or a whole lot of nonsense. Oddly, he paid for the engine and the transmission (still owns the car).

Oil costs hurt the economy; yesterday, I topped-off the tank in New Hampshire with 5.3 gallons. The cost? $15.33. When heading for home I thought, “I used to pay around $5.00 for that much gasoline.” This too is oil company flatulence. Sure, China and India slurp the volatile stuff too. I wonder how it is that every station now has the same price, and they all change it the same day (hour…minute). What drives the price change? If a gas station pays $2.00 per gallon for 5,000 gallons, and they have not had a delivery since, how come they increase prices to $3.00 per gallon? More profit flatulence.

Inflation and the Federal Reserve Bank face a critical confrontation soon. Oil prices will go to $100 (let’s say they do…There are folks waiting for that to happen. Watch the Bloomberg television announcer for oil and gas commodity pricing. She gets giddy when prices go up.)

Heading toward $100 per barrel brings us close to Jimmy Carter and cardigan sweater time. Oil goes up, interest rates go up, inflation worries prompt the Federal Reserve to push rates higher, and the economy suffers. It may be an inevitable conflation of inflationary flatulence.

Keep the windows open.

Read some of my other articles found as Ethos Musings