Financial Crisis

[lannarebirth]

The US right wing's stated goal was to do anything necessary to beat Obama in 2012. So they starved the government's ability to do any more desperately needed stimulus spending, cut off the government's power to raise revenues in any way, in effect making any sign of job/growth recovery by election time almost impossible. Cheeky ... and evil. The Americans out there now suffering and yes dying, the right wing simply doesn't care about. Their irrational ideology which is like a fundamentalist religion to them, plus of course their total dedication to serve ONLY the wealthy, rules all for them.

http://www.nytimes.c...super-rich.html

I'm not sure how many rich people you know JingThing, but I know quite a few. You can raise the tax rate but they're not going to be paying anymore taxes. if the tax rate is 45% they'll pay 44% to an accountant who will create all kinds of fiscal schemes so that they pay no taxes. Not to mention the fact that they can send their money anywhere else in the world in about 1/2 a second. Should the rich pay more? Of course they should, but it has to be without loopholes and tax credits and all kinds of othercrap that half a dozen congresses have created to let them off the hook. Otherwise they'll just take all that money somewhere else, like Thailand, where ther is 0% tax on equity market capital gains.

[JimGant]

“But we will never cut our way to prosperity.”

Wow, Jeb Bush said that? I guess some of his brother's Harvard B School training rubbed off on him ("W", of course, started the stimulus program, which Obama continued, and which far from perfect, certainly kept the Great Recession from becoming the Great Depression Part II). The Tea Party, however, would like to reverse that.

Jingthing said:

So they starved the government's ability to do any more desperately needed stimulus spending, cut off the government's power to raise revenues in any way, in effect making any sign of job/growth recovery by election time almost impossible. Cheeky

You got half that right. The two parts to stimulus are: increase spending and decrease taxes. The Tea Party's religious fervor against raising taxes actually helps the Keynesian crowd in their "fight deficits tomorrow, throw money at the problem today." These idiots would never admit it, but keeping taxes at Bush levels for now is good for the stimulus model. That's why Obama was smiling when he agreed to continue the Bush cuts (until we're out of the woods).

. i am more interested in seeing examples of how Obama and his followers are squandering money

Yeah, some of those "shovel ready" projects weren't the best of stimuli. But, like painting murals on post offices in the thirties, it sure beat reversing the flow of wages. Or, at least, that's what most economists believe.

No new taxes (because of religious bent, not economic wisdom), and spending cuts that are far from immediate -- may just mean Keynes will get us out of this mess. Backing into success -- thru' pure accident and ignorance -- doesn't give one a warm and fuzzy, however.

[midas]

The fact is Congress is squandering money on tax breaks for the likes of Billionaire Buffett to give him a tax rate of 17.4% not the 35+% the Tea Party/Republicans cry/lie about and Congress continues to spend trillions on useless defense projects and wars to enrich the military-industrial complex. What you cite is wasteful peanuts... focus on the big picture.

ok I take your point maybe 45,000 bicycle helmets is indeed only peanuts

but what about this though

" the Benjamin Isherwood and the Henry Eckford are two ships no one wanted. The two Navy behemoths have never gone on a mission, were never even completed, yet they cost taxpayers at least $300 million.

Now the vessels, are destined to leave Virginia waters for good and be scrapped at a Texas salvage yard, with no money coming back to the U.S. Treasury."

Edited August 15, 2011 by midas

[flying]

now is not the time to tighten - they should redirect spending from military , Government etc but that will take too long...

how long does it take for Cameron to stop "enforcing the no-fly zone in Ghadhafi country and use the money more wisely?"

Yep - I was thinking more of the US ...

Oh the US is spending in Libya more than they let on....as usual

Folks like to deflect it by calling it a NATO action but, what % of NATO is made up by the USA both in man power & $$$$

they should redirect spending from military , Government etc but that will take too long - .. and so they need a stimulus now

It will take as short a time as they make it really.

How long has this been going on? They cannot claim time constraints.

They could do simple things like stop driving billion dollar subs all over the seven seas policing what?

It is like flying a 747 across the world to buy a loaf of bread.

Just silly stupid spending.

Same goes for ALL the unfunded wars errr...policing actions/Pre-emptive <sic> strikes.

How about the 700 or so military bases? They have known all this forever yet it continues.

How many US bases in Germany alone? How many US military golf courses?

Edited August 15, 2011 by flying

[ronz28]

ok I take your point maybe 45,000 bicycle helmets is indeed only peanuts

but what about this though

" the Benjamin Isherwood and the Henry Eckford are two ships no one wanted. The two Navy behemoths have never gone on a mission, were never even completed, yet they cost taxpayers at least $300 million.

Now the vessels, are destined to leave Virginia waters for good and be scrapped at a Texas salvage yard, with no money coming back to the U.S. Treasury."

I am ok with cutting whatever waste but please focus on the trillions of dollars for these long drawn out wars that far exceed duration of World War II even though we are far more efficient now.

http://costofwar.com/en/

And then there is the continuing costs to support veterans, etc. that doesn't stop when the war stops. Better for countries to maintain peace with the rest of the planet and just take out the Hitlers and Bin Ladens.

[flying]

I am ok with cutting whatever waste but please focus on the trillions of dollars for these long drawn out wars that far exceed duration of World War II even though we are far more efficient now.

http://costofwar.com/en/

And then there is the continuing costs to support veterans, etc. that doesn't stop when the war stops. Better for countries to maintain peace with the rest of the planet and just take out the Hitlers and Bin Ladens.

+1

It all seems so obvious doesn't it?

And it is not like we are the only ones that see it so.....

The question begs who is being enriched by these things? Is it more of the same?

Lobbyist or contract companies selling products to get billions in contracts?

Lining the pockets of those that push for them?

Or is it that we as a country are now so unproductive that the government see the military

as the only viable employment source?

Has to be one of the above IMO because where is the real threat?

Who has the air forces & navies to be a real threat that require this kind of continual deficit spending

on the military industrial complex?

Edited August 15, 2011 by flying

[NovaBlue05]

I am ok with cutting whatever waste but please focus on the trillions of dollars for these long drawn out wars that far exceed duration of World War II even though we are far more efficient now.

http://costofwar.com/en/

And then there is the continuing costs to support veterans, etc. that doesn't stop when the war stops. Better for countries to maintain peace with the rest of the planet and just take out the Hitlers and Bin Ladens.

+1

It all seems so obvious doesn't it?

And it is not like we are the only ones that see it so.....

The question begs who is being enriched by these things? Is it more of the same?

Lobbyist or contract companies selling products to get billions in contracts?

Lining the pockets of those that push for them?

Or is it that we as a country are now so unproductive that the government see the military

as the only viable employment source?

Has to be one of the above IMO because where is the real threat?

Who has the air forces & navies to be a real threat that require this kind of continual deficit spending

on the military industrial complex?

I don't believe the US mainland has been invaded in 200 years so I doubt it has anything to do with defense

[cloudhopper]

Interesting and informative interview - http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/8/15_Jim_Rickards.html

[midas]

I am ok with cutting whatever waste but please focus on the trillions of dollars for these long drawn out wars that far exceed duration of World War II even though we are far more efficient now.

http://costofwar.com/en/

And then there is the continuing costs to support veterans, etc. that doesn't stop when the war stops. Better for countries to maintain peace with the rest of the planet and just take out the Hitlers and Bin Ladens.

Yes I guess I can't help it I was brought up in a farming family in UK where they have a saying

among rural people " take care of the pennies and the pounds will take care of themselves ".

Maybe I do concentrate too much on the micro spending but you have to start somewhere. When I was living in Australia, my neighbour was Senator Michael Baum. He was a conservative and was Chairman of the Waste Watch Committee being part of the opposition at that time in the Australian Parliament before John Howard subsequently became Prime Minister. This committee had the power to subpoena senior public servants and quiz them about spending money even though Michael Baum acknowledged that even though they were under oath, they would lie through their teeth when they were asked questions. I would quite often hear a call over my wall when he wanted to pass over some interesting papers for me to read which were yet more shocking revelations about how the Labour Government ( then under Paul Keating and Bob Hawke ) had again allowed extravagant expenditure which bordered on criminality.

One example was when they were building the New Parliament House in Australia which ran over budget in a huge way. The waste watch committee somehow discovered the government was paying for foundations that didn't even exist simultaneously they discovered fraud in that some of the builders had been " siphoning off " building materials from the project to build lavish homes for themselves in Canberra.

I often wonder why doesn't USA and England have something equivalent to a waste watch committee?

Edited August 16, 2011 by midas

[BlackJack]

German growth disappointing at 0.1%

the rot starts

watch markets tomorrow

[churchill]

German growth disappointing at 0.1%

the rot starts

watch markets tomorrow

Euro Crash coming ? but what about the USD crash ...

What happens if they both crash together ?

[Naam]

German growth disappointing at 0.1%

the rot starts

watch markets tomorrow

because today the markets are not aware what happened.

[Naam]

German growth disappointing at 0.1%

the rot starts

watch markets tomorrow

Euro Crash coming ? but what about the USD crash ... What happens if they both crash together ?

my feeling is what will crash in the foreseeable future are the prophecies and expectations of the doom&gloomers. the latter notwithstanding the fact that i'd appreciate a crash con mucho gusto and as soon as possible.

[cloudhopper]

Euro Crash coming ? but what about the USD crash ...

What happens if they both crash together ?

Maybe this - http://www.zerohedge.com/news/stagflation-threatens-western-economies-–-gold-bubble-correct-or-go-parabolic-1970’s

[flying]

Euro Crash coming ? but what about the USD crash ...

What happens if they both crash together ?

At times I wonder if that is in fact TPTB's desired outcome.

from which could spring a single currency even more easily controlled.

Not that they dont control now through Central Banks

Yeah I know...very conspiracy like but just something I wondered at times.

[cloudhopper]

Euro Crash coming ? but what about the USD crash ...

What happens if they both crash together ?

At times I wonder if that is in fact TPTB's desired outcome.

from which could spring a single currency even more easily controlled.

Not that they dont control now through Central Banks

Yeah I know...very conspiracy like but just something I wondered at times.

I'da thought the euro's troubles would make a single global currency even less likely.

[flying]

I'da thought the euro's troubles would make a single global currency even less likely.

Me too.....Then I see the Swiss thinking of pegging & again I wonder???

Edited August 17, 2011 by flying

[Naam]

I'da thought the euro's troubles would make a single global currency even less likely.

Me too.....Then I see the Swiss thinking of pegging & again I wonder???

what is there to wonder? Switzerland is located in the heart of EU-Land. two thirds of its trading volume (imports as well as exports) is done with EU countries. a peg to the €UR would be a logical conclusion. however, in the 70s a peg to the Deutsche Mark did not work out as upward pressure on CHF could not be contained.

[flying]

I'da thought the euro's troubles would make a single global currency even less likely.

Me too.....Then I see the Swiss thinking of pegging & again I wonder???

what is there to wonder? Switzerland is located in the heart of EU-Land. two thirds of its trading volume (imports as well as exports) is done with EU countries. a peg to the €UR would be a logical conclusion. however, in the 70s a peg to the Deutsche Mark did not work out as upward pressure on CHF could not be contained.

Just seems like poor timing to chain themselves to anything that appears unstable.

[Naam]

I'da thought the euro's troubles would make a single global currency even less likely.

Me too.....Then I see the Swiss thinking of pegging & again I wonder???

what is there to wonder? Switzerland is located in the heart of EU-Land. two thirds of its trading volume (imports as well as exports) is done with EU countries. a peg to the €UR would be a logical conclusion. however, in the 70s a peg to the Deutsche Mark did not work out as upward pressure on CHF could not be contained.

Just seems like poor timing to chain themselves to anything that appears unstable.

you give too much weight to the rubbish published in zero-blockspot-max_keiser-hedge-alphaville.turd.com websites Flying

p.s. and that applies to "cloudhopper" too :jap:

[flying]

you give too much weight to the rubbish published in zero-blockspot-max_keiser-hedge-alphaville.turd.com websites Flying

p.s. and that applies to "cloudhopper" too :jap:

Mai Mak

While I do read various sites I still mainly use my eyes & watch results/ thrashing etc

[BlackJack]

I am now convinced that Naam knows how to solve the financial problems of the World and therefore would like to nominate him as President of the World

Do I hear a second?

[midas]

I am now convinced that Naam knows how to solve the financial problems of the World and therefore would like to nominate him as President of the World

Do I hear a second?

would I have to take the red pill?

[cloudhopper]

Another take on eurobonds - http://globaleconomicanalysis.blogspot.com/2011/08/merkel-sarkozy-reject-euro-bonds-and.html

[flying]

Another take on eurobonds - http://globaleconomicanalysis.blogspot.com/2011/08/merkel-sarkozy-reject-euro-bonds-and.html

This video from teh comments section of that article....

While not surprising should piss a few off

[12DrinkMore]

To fool the currency speculators, here is a novel proposal.

http://www.cash.ch/news/front/mit_dem_zufallsgenerator_gegen_die_frankenstaerke-1067360-449

The idea is that the SNB will happen with sufficient frequency and with enough volume buys and sells foreign exchange. This could be done with a computerized random number generator. So the risk for speculators to suffer a loss, it is massively increased. Nobody knows if the franc weakens or enhances now. Insider knowledge would neutralize each otherby up to a certain extent. Trends that investors would run after, by chance purchases more difficult to identify or even broken. So that bubbles would be contained at an early stage.

[midas]

Another take on eurobonds - http://globaleconomicanalysis.blogspot.com/2011/08/merkel-sarkozy-reject-euro-bonds-and.html

This video from teh comments section of that article....

While not surprising should piss a few off

Unreal

despite so many that have dismissed it as a conspiracy theory,

global corporate government has already arrived.

[flying]

Unreal

despite so many that have dismissed it as a conspiracy theory,

global corporate government has already arrived.

All Animals are Equal but some animals are more equal than others

[Naam]

Unreal

despite so many that have dismissed it as a conspiracy theory, global corporate government has already arrived.

i fully agree but prefer to use "since several years" instead of "already". hard evidence was the handling "Bear Sterns, March 2008" which was a few months later backed by the actions caused by "Lehman, September 2008".

but those who don't agree with you and me might argue "there was no other and better way!" and i [hate] having to agree with them too.

[Naam]

To fool the currency speculators, here is a novel proposal.

http://www.cash.ch/news/front/mit_dem_zufallsgenerator_gegen_die_frankenstaerke-1067360-449

The idea is that the SNB will happen with sufficient frequency and with enough volume buys and sells foreign exchange. This could be done with a computerized random number generator. So the risk for speculators to suffer a loss, it is massively increased. Nobody knows if the franc weakens or enhances now. Insider knowledge would neutralize each otherby up to a certain extent. Trends that investors would run after, by chance purchases more difficult to identify or even broken. So that bubbles would be contained at an early stage.

massive unanounced interventions did not work before, will random interventions work now? the latter would of course interfere heavily with technical analysis (aka chicken entrails chart voodoo tea leaves reading) which is the overall basis of most currency trading.

but whatever, it's an interesting theory!