Debt

Greg,

Who do you think will be the republican contender against Obama?

Perry. I used to really dislike the guy, but he is going to step in and he has something really going for him. Under his watch he got the Texas rating increased: Weasel Zippers ? Blog Archive ? Flashback 2009: Texas Has Its Credit Rating Upgraded By S&P Based On Rick Perry’s 2010–2011 Budget…

Perry could wipe the floor with Obama based on his economic record alone. Half of all jobs created in the U.S. during last two years came from one state, Texas.

AUSTIN — Standard & Poor’s (S&P) has raised Texas’ issuer credit and general obligation credit ratings to AA+ from AA based on the state’s strong and diverse economy and strong leadership from the governor and Legislature that has left a projected $9 billion in the state’s Rainy Day Fund. S&P also raised its rating on the state’s appropriation debt to AA from AA-.

“The ratings continue to reflect our opinion of the state’s large and steadily diversifying economy, which despite the recession continues to perform better than the nation in terms of both economic activity and employment,” S&P credit analyst Horacio Aldrete-Sanchez said. “Furthermore, we expect that the Texas economy will recover earlier and at a faster rate than most other states given its continued population growth and relatively low cost of doing business, which we expect will contribute to gradual employment gains in 2010, particularly in the health, education and services sectors.”

S&P’s decision was based on Texas’ 2010-11 biennial budget, the state’s strong Rainy Day Fund, and Texas’ low tax-supported debt burden. The higher rating means Texas will pay lower interest on money it borrows, saving of millions of taxpayer dollars.

“In light of the economic downturn affecting the nation, this session we continued to make wise choices, such as cutting taxes on 40,000 small businesses and maintaining a multi-billion dollar balance in our Rainy Day Fund that have helped our state sustain its overall economic strength,” Gov. Perry said. “These prudent and fiscally conservative decisions continue to pay off for our taxpayers.”

Not my favorite, but electable. Has he really had a change of heart and is now the champion of state's rights? Eh, I doubt it, but the rhetoric is there and with the correct backing he'll fit the shoes because by doing so he will go down in history. After Carter came Reagan, after Obama is someone who is going to try like hell to be the next Reagan. Big shoes to fill, but I think Perry will give it a good shot. Yes, he used to be a Democrat, but then so was I (I voted for Gore). After 9/11 I became a Republican, and after Obama was elected I had the honor of working with Jim Demint's staff and Dr. Larry Hunter, former policy advisor to President Reagan. I learned a lot from these guys and really saw how GWB was not really a conservative when it came to spending.

I don't care about social issues, I care about spending. I am not a member of the Tea Party, I have actually been kicked off Tea Party Patriots and RedState, so I am actually hated by both groups. I even got an honorable mention in Tea Party Muckracker!

But I do believe their hearts are in the right place. They are not the nuts everyone says they are and as far as political strategy goes, they need to learn to be a little more Machiavellian and they need to rely less on federal intervention and realize there is a way for the states to fight back against federal intrusion. It's called nullification and was first used in the NW to kill the Fugitive Slave Act, before being used by Jefferson in the Principles of '98 to end the a most egregious piece of legislation that became law known as the Alien and Sedition Act.

Recently it has been used to fight the Real ID act and ignore the federal governments war against Medicinal Marijuana. Oklahoma leads the way - they actually have a tax escrow account that must be approved by the legislatures and governor before tax revenues are sent to the feds. Get about 20 more states to do that, and you will be back to the type of governance our Founder's envisioned.

It was tyranny in the form of a nation whose sovereignty lay in its Parliament that lead to the birth of this country. Now that tyranny is in DC and state sovereignty - which was communicated as being supreme even above the federal courts in order to get holdout states to sign the Constitution (read the Federalist and anti-Federalist papers) - is now under attack. I love the Jeffersonian argument on this one: in a dispute between you and I, a dispute that has a great deal at stake for the both of us - would you agree to allow my mother to arbitrate the dispute and then agree on her findings?

By allowing the Supreme Court to be the final arbiter of disputes between the states and the federal government you are doing essentially the same thing as the Supreme Court is a part of the federal government. The system was never designed to be this way, but time has eroded away at our liberties until we find ourselves where we are today. I knew is was going to happen, but under Obambi we have entered a territory where the bottom could, quite literally, fall out from under us.

BTW, it's Gerry and not Greg. Not that I mind, but if there was a Greg on this thread (I did not see one) I would not know who you were addressing.
 
Wow, what a great summary: The stunning decline of Barack Obama 2011 edition: 10 key reasons why the Obama presidency continues to melt down – Telegraph Blogs

In August last year I published a list of ten key reasons why the Obama presidency was in serious decline. This is a sequel to that post, which was one of the most read pieces on The Telegraph website in 2010. Twelve months on, the outlook continues to look exceedingly bleak for President Obama, with no sign of a recovery.

July was the worst month for the Obama presidency since the November mid-terms which saw his party emphatically drubbed in Congressional elections across the country. The president hit an all-time low with a Gallup poll at the end of the month giving him just 40 percent approval, with his rating among independents plummeting to just 34 percent. The outlook became even worse at the start of August, with dramatic falls in the stock market, and the historic decision by credit rating agency Standard and Poor’s to downgrade America’s debt.

As the latest RealClear Politics average of polls shows, less than a quarter of Americans believe the country is moving in the “right direction,” a damning indictment of the first 30 months of the Obama presidency. According to Rasmussen, that figure is as low as 14 percent, the lowest level of public confidence since November 2008.

I’ve outlined below ten key reasons why the Obama presidency continues to flounder, after a very short-lived bounce in the spring.

1. Obama isn’t trusted on the economy

A series of recent polls have demonstrated significant public discontent with President Obama on the economy, the number one issue for US voters. A Washington Post/ABC News survey in late July reported that 57 percent of Americans disapprove of Obama’s handling of the economy, 60 percent disapprove of his handling of the federal budget deficit, and 52 percent are unhappy with the president on job creation. A July 21 poll for Gallup showed US economic confidence plunging to its lowest level since March 2009, with just 26 percent of Americans saying the economy is “getting better.” According to Gallup, more than two thirds of Americans now say the economy is “getting worse.” The latest Rasmussen survey shows consumer confidence “just one point above the lowest levels of the last two years” with investor confidence “down nine points from a week ago, down 12 points from a month ago, and down 29 points from three months ago. Investor confidence has not been lower since March 13, 2009.”

2. Obama isn’t serious about the budget deficit

That’s certainly the opinion of credit agency Standard and Poor’s, which downgraded America’s AAA credit rating for the first time in 70 years, in early August. As the Congressional Budget Office revealed in a January report, the deficits generated by the Obama administration are the largest since the end of World War Two, after two years of unchecked and out of control federal spending. And as I noted in a piece on the S&P decision last week:

Since President Obama took office in January 2009, the United States has embarked on the most ambitious failed experiment in Washington meddling in US history. Huge increases in government spending, massive federal bailouts, growing regulations on businesses, thinly veiled protectionism, and the launch of a vastly expensive and deeply unpopular health care reform plan, have all combined to instill fear and uncertainty in the markets.

3. Obama’s foreign policy remains a weak-kneed and confusing mess

US foreign policy under President Obama remains a staggering mess. With a policy of “leading from behind”, Washington’s approach towards the war in Libya has been a sea of dithering and contradiction, with no discernible end goal in sight. The Obama administration has acted like a deer in the headlights in the face of momentous changes in the Middle East, and was caught napping by developments in both Egypt and Syria. In the face of the Iranian nuclear threat, the United States has been largely passive, content to pursue a foolhardy policy of engagement while Tehran edges closer to building a nuclear weapon. Over in Europe, the Russian reset has emboldened Moscow, while undermining key allies in eastern and central Europe. Obama has paid scant attention to the transatlantic alliance, weakening the Special Relationship with Britain, and sleepwalking while NATO declines. It is difficult to think of a US foreign policy that could be more ineffective that the one pursued by this administration, with the hardly surprising result that confidence in US leadership has dramatically fallen across the world since Obama took office.

4. Independents are deserting the president

In contrast to Bill Clinton, who moved to the centre after the emphatic Republican takeover of the House of Representatives in 1994, Barack Obama has shown little inclination to do so. This is a rigidly ideological presidency with a distinctly left-wing vision and agenda. Unsurprisingly, independents have been deserting Obama in droves, a huge cause for concern for the White House as it looks to November 2012.

A Gallup survey at the end of July found just 37 percent of independents backing Obama, his lowest level of support from this group since he took office, a fall of ten points since the end of May, and down from 62 percent at the start of his presidency. A Pew Research Center survey, conducted in late July, also showed a dramatic drop in support for the president among registered independent voters, with significant implications for the presidential elections. As Pew noted in its report:

The sizeable lead Barack Obama held over a generic Republican opponent in polls conducted earlier this year has vanished as his support among independent voters has fallen off. Currently, 41% of registered voters say they would like to see Barack Obama reelected, while 40% say they would prefer to see a Republican candidate win in 2012. In May, Obama held an 11-point lead.

This shift is driven by a steep drop-off in support for Obama among independents… just 31% of independent voters want to see Obama reelected, down from 42% in May and 40% in March. Where Obama held a slim 7-point edge among independent registered voters two months ago, a generic Republican holds an 8-point edge today.

5. A majority of Americans still reject Obamacare

President Obama has stubbornly refused to back down over his hugely costly health care reform plans, commonly dubbed “Obamacare”, despite significant public opposition to them. In many ways, Obamacare is a political albatross around Obama’s neck as he heads towards 2012. The RealClear Politics average for May to July has 50.8 percent of Americans opposed to Obamacare, with just 38.6 percent in favour. Rasmussen, which tracks the issue closely, has the level of opposition to Obama’s health reforms running currently at 55 percent. CNN’s most recent polling in June placed public opposition at 56 percent. Strikingly, out of 50 polls conducted on Obamacare since the start of 2011 and listed by RealClear Politics, only two (Rasmussen in January and Gallup in March), show more support than opposition for the president’s plan.

6. The Obama presidency looks increasingly out of touch with the American people

There is a disturbing let them eat cake mentality projected by the Obama White House, whether the president is advocating higher taxes in the face of a possible double dip recession, or hosting elaborate parties while 45 million Americans depend on food stamps. No US presidency in modern times has been more elitist or out of touch than the present one, which exudes the kind of condescending left-wing snobbery that is normally the preserve of an ivory tower common room. President Obama looks increasingly aloof and out of sync with the American people, three quarters of whom now believe the country is heading down the wrong track – including a staggering 58 percent of Democrats, according to Rasmussen.

7. Conservatism is growing stronger in America

While President Obama remains determined to shift the country to the Left, the American public is increasingly conservative in terms of ideology. There is a fundamental disconnect between the most ideologically driven liberal president in US history, and a large percentage of the American people. As Gallup’s latest survey on political views shows, conservatism is by far the leading ideology in the United States. According to Gallup, nearly twice as many Americans (41 percent) call themselves conservative, compared to those who describe themselves as liberal (21 percent). Conservatives also outnumber moderates (36 percent) by a five point margin. And among Republicans, 71 percent describe themselves as “very conservative” or “conservative”, compared to just 38 percent of Democrats who call themselves “very liberal” or “liberal”.

8. The Tea Party has been a stunning success

No article on Barack Obama’s stunning decline would be complete without mention of the Tea Party, which has been undoubtedly the most influential US political movement of the decade. The Tea Party’s relentless rise played a key role in sparking the conservative revolution that swept Capitol Hill last November, and has played a major role in setting the agenda when it came to the heated debates over government spending this summer. Were it not for the Tea Party, it is likely that the budget deficit would not be the central issue it is today, and federal spending would have remained a largely inside the beltway debate instead of the talk of dinner tables across America. A truly grassroots movement has succeeded in a short period of time in humbling a presidency, and challenging the status quo on Capitol Hill.

9. The Obama presidency comes across as bitter, nasty and divisive

Vice President Joe Biden’s recent attack on the Tea Party, supporting the charge by Democrat Congressman Mike Doyle of Pennsylvania that Tea Party Republicans had “acted like terrorists” over the debt issue, was symbolic of an emphatically partisan White House, that is increasingly lashing out aggressively at anyone who questions its policies. As I noted at the time:

There is something deeply sad and disconcerting when the vice president decides to compare opposition legislators in Congress with terrorists simply because he disagrees with their views and principles. This is the kind of ugly, threatening rhetoric that has no place at the heart of the US presidency… Joe Biden has clearly overstepped the line with his comments, and brought the office of the vice president into disrepute. His actions today are symbolic of a White House that increasingly looks bitter, crass and petty in its behaviour as public opinion moves firmly against it. Biden’s outburst is a sign of the Left’s growing desperation 30 months into the Obama administration, and only further reinforces the image of decline and decay sinking in at 1600 Pennsylvania Avenue.

10. The liberal elites are turning on the president

One only has to read the pages of The New York Times, the flagship of America’s liberal elites, to see how some of the president’s most ardent left-wing supporters have begun to turn against him. Even Maureen Dowd despairs that her beloved president has been forced to make concessions to the Tea Party on the debt issue, quoting a Democrat Senator as saying: “we are watching him turn into Jimmy Carter right before our eyes.” And as for uber liberal Nobel prize winning economist Paul Krugman, Obama has supposedly “surrendered” to the Right. There is every sign of a vicious civil war breaking out on the Left, as disillusionment mounts with Obama. This will make it increasingly difficult for the president to present a united front as he campaigns for re-election, and he will have to contend with heavy sniping from powerful liberal voices, most of whom gave him unequivocal backing in 2008.

A presidency in decline

The omens are certainly not looking good for President Obama, as he approaches the final 16 months of his presidency. Public opinion has turned firmly against him in recent weeks, as it did in the months ahead of the November 2010 midterms. On the economy, undoubtedly the dominant issue for voters in 2012, he is on distinctly shaky ground, with his Big Government agenda increasingly distrusted by the American electorate, scorned by the financial markets, and given a vote of no confidence by credit agency Standard and Poor’s. By almost any measure, this is a presidency in steep decline and in serious trouble. This is looking like another ‘annus horribilis’ for Barack Obama, the ‘hope and change’ president who, on current trajectory, seems destined for failure, with a legacy of declining prosperity at home and dispiriting American weakness abroad.
 
Well, it's not often that I'm wrong. I thought the Tea Party Terrorist/Tea Party Downgrade meme would last about 1 month. Woops, it did not even last a day: Rasmussen: 29% agree with “Tea Party terrorists” depiction Hot Air

Money quote:
The fact that they can even get 29% to agree that pursuing policy changes through representative government is akin to “terrorism” is depressing, but it has a silver lining. It looks like Democrats and self-professed liberals are marginalizing themselves fast in this media meme du jour.

Read the whole thing. I'm going home to have a beer or two. It's been quite a day.

I don't find it depressing at all. I would say about 1 in 3 voters are really that stupid. 29% about fits the number of pathological liberals in this country. Of course, wait until S&P starts to downgrade the states - and you thought this was over.

I wonder what Texas will get vs. California and New York. Hmmm....I bet at that time there will be a few liberals who will, like I once did on 9/11, put on their thinking caps and realize that, whoops, I've been duped.
 
Precious and very true. This is the first time in recent memory that I can recall the Democrats losing the PR war. They are usually the ones so good at it and the GOP always looks like idiots. I guess more people are paying attention now than ever before. Nothing like a national crisis to focus one's mind. And by not allowing this crisis to go to waste - hey, it's the Obama way - Bambi has really stepped into it: Democrats’ “tea-party downgrade” spin is self-defeating Hot Air

Every single time he blames the Tea Party his numbers go down. Time to try out some different focus groups guys - your picking some real losers here.

The GOP message machine is, rather surprisingly, in well-oiled mode. Even John "hobbit" McCain is trying to get back into the good graces of the Tea Party after calling the group a bunch of hobbits living in Middle Earth. It does not take a genius to figure out that in the world of political triangulation one often finds that foot in mouth disease must be dealt with quickly. Internal polling must be showing McCain that the Tea Party is about to become a behemoth that is here to stay. The establishment RINOs must be shaking in their boots and Bambi can only manage a impotent regurgitation of liberal talking points that are so obviously cooked up that a five year old could recognize them.

With the DOW set for another drumming tomorrow and possible downgrade by Finch and possibly, but not hopefully, Moody's - Obama won't have the blame the Tea Party to fall back on. The downgrades will come much later than a bill that has been signed into law and to boot, the American people are sick of excuses. Bambi has lost his magic - right before our eyes. What a fall it has been. Well, a little less than 16 months are left for Bambi to do his worst. As the above story indicates, Bambi won't be able to do much more damage. When the SCOTUS kills ObamaCare next year, we can all (by we I mean the sane people) breathe a sigh of relief.

:popcorn:
 
Public service announcement: be cautious buying gold. With everyone running to Treasuries right now until the bottom is hit - when they will move back to stocks - and the feds having little power to print money, many pundits are predicting the gold bubble will burst. I not saying don't buy it, just be careful.
 
BBC News - London rioters: 'Showing the rich we do what we want'

Yeah, show the rich you can do what you want. When the plastic bullets come out we'll see how well you fare. My bet - you run like chickens. In your little socialist haven if it were not for the rich you would have nothing as you are living off their backs losers. Thankfully we have guns here in the states. God forbid this ever happened in Texas. There would be dead rioters littering the streets.

As far as the beatings at the state fair here in the U.S., I have a dream that someone will attempt to attack me. Ah, C&C, what a blessed country we live in. I would just love to pump 13 rounds of my .45 Glock into the dumba$$ that tried that with me or my wife and watch the pussies run away in fear as I laughed so hard I pissed in my pants.

An my wife would have her gun - named Belle - ready for the attack. A Kimber .45, the accuracy is amazing and the stopping power is awesome. The bullets - oh, the bullets - big hole in the front and no exit wound - explodes upon impact. Oh yeah, bring it on.
 
Dow futures down over 290 points. 24 Hour Stock Market and Forex Data - After-Hours Trading - CNNMoney.com

It's gonna be a big crash again tomorrow. This is now clearly the market pricing in a second recession. Obama is toast now. I'm looking for a bottom of 9500-10000 sometime tomorrow or Wednesday. If it hits 9500 tomorrow, I will be looking for a bottom of 9000 before I buy back in.

So the feds may buy up bonds (and stocks) with a QE3 type approach. Remember QE1? Yes, the market just shot up only to drop 4000 points in the coming months. Hey it if did not work the last time, it should work this time.

Don't buy in unless you are a day trader and can sell at the touch of a button. The band-aid did not work with QE1, QE2, and if anybody things the third time is the charm with QE3, they don't understand market fundamentals. Printing money in a recession is never a good thing. If you let the markets work it out, then everything will settle. All Obama is doing now is making the rich richer (hey, I though you libs hated that sort of thing) and setting up the average Joe for a big fall.

I'm not falling for it. I didn't the first or second time and I sure as hell am not going to fall for it the third time.
 
A lesson in quantitative easing: QE3? Expect, at most, QE 2.1 at Fed meeting - The Fed - MarketWatch (emphasis mine):

WASHINGTON (MarketWatch) — The Federal Open Market Committee meeting on Tuesday, which just two weeks ago was expected to be an almost throwaway gathering, has suddenly morphed into a major event.

That’s what Thursday’s 513-point one-day hammering on the Dow Jones Industrial Average, followed by Monday’s 635-point nosedive, will do.

“It won’t be a boring meeting,” said Lawrence Creatura, co-portfolio manager of small-cap value investments for Federated Clover Investment Advisers. “We’re in an entirely different orbit today than we were two weeks ago.”

The Fed will have weighed both the market’s slide as well as recent economic data, such as the deterioration in manufacturing sector sentiment and the weak gross domestic product reports for both the first and second quarter, said Karen Dynan, co-director of the Brookings Institution’s economic studies program and a former senior adviser to the Federal Reserve Board.

“The question for them is whether this is a soft patch or a sustained slump in activity,” she said. “We don’t know and they don’t know.”

The market’s major question is if the Federal Reserve, which will deliver its interest-rate decision at 2:15 p.m. Eastern on Tuesday, will give any hints on the initiation of a third round of quantitative easing, a so-called QE3. The August meeting won’t be followed a press conference with Federal Reserve Chairman Ben Bernanke, so any information the Fed wants to convey will have to be transmitted through its written statement.

Bernanke will be making his annual major policy address in Jackson Hole, Wyo., at the end of the month.

Investors are mulling whether the Fed will embark on another round of quantitative easing ahead of the Fed’s meeting, or whether the Fed really has a choice in the matter, David Reilly reports. (Photo: AP Photo.)

But Fed followers say there’s not much ammunition left in the central bank’s cannon. And more broadly, monetary policy isn’t really the problem.

“I don’t think you have a money problem right now,” said Jerry Webman, chief economist for OppenheimerFunds. “Monetary policy is about controlling the supply and price of money, and right now there’s ample supply, and money can be had at a very cheap price.”

Webman likened a third round of bond purchases to drinking too much coffee. The next cup, he said, probably wouldn’t wake up the economy and might even cause it to get drowsier.


That’s not to say the Fed doesn’t have any options. But there aren’t many, even as the Fed tries to communicate some change in its view.

“The skittishness of markets following the [Standard & Poor’s] downgrade has probably increased the potential costs to the economy of the Fed appearing hesitant to deliver further accommodation,” said Michael Feroli, chief U.S. economist at J.P. Morgan Chase.

Steven Ricchiuto, chief economist for Mizuho Securities USA, said one option for the Fed is to put more meat on the “extended period” language in the statement.

The last FOMC statement said: “The committee continues to anticipate that economic conditions — including low rates of resource utilization and a subdued outlook for inflation over the medium run — are likely to warrant exceptionally low levels for the federal funds rate for an extended period.”

“That’s one of the tools they have talked about,” Ricchiuto said of altering language. “They have said they will hold interest rates low for an extended period, but they could hold it even longer,” he said.

While tinkering with the language could make an impact on the whole rate curve, it’s unlikely to give the economy much of a shot in the arm.

“The economy has fundamental imbalances,” Ricchiuto said. “A lot of policy tools are not working.”

Another option that Bernanke has publicly broached is to lengthen the average maturity of the $2.9 trillion in bonds that it’s holding.

The Fed has said it plans to hold its balance sheet constant by reinvesting the proceeds of maturing bonds, so the central bank could buy longer-maturity bonds, in a bid to get investors holding riskier assets.

“If you want to do something interesting, you could replace [maturing bonds] with longer-dated mortgages,” Ricchiuto added.

But the Fed legally would have trouble buying mortgage securities from the private market (as opposed to those issued by Fannie Mae or Freddie Mac), where the central bank’s intervention would be more productive, Dynan of Brookings said.

Another option the Fed is toying with is cutting the quarter-point of interest they pay to banks on reserves parked with the central bank, an action which Bernanke in July said could put downward pressure on short-term interest rates.

One other point is that the market has done some of the Fed’s work for it. The yield on the 30-year Treasury note 30_YEAR +0.88% has fallen roughly a half point over the last two weeks.

“When we expect a slower economy, market rates go down, which helps offset the negative impetus,” Dynan said.

Creatura of Federated said the best advice may simply be for the Fed to hold tight.

“What the Fed can provide is stability and maturity and allow other components of our corporate and governmental structures to solve their problems,“ he said.

“You don’t hire a carpenter to solve a plumbing problem,” he added.
 
Hey, Babmi knows how to handle inflation! Nah, not really: http://thehill.com/blogs/e2-wire/677-e2-wire/176053-white-house-unveils-first-ever-fuel-efficiency-standards-for-heavy-duty-trucks

So tool 18 wheelers to increase fuel standards. As this will cost nothing to do, no harm, no foul. Except it will cost money and anybody that thinks the truckers are going to eat that cost, think again. Does anybody have any idea how many trucks would be affected by this? And other vehicles on the target list as well? Has anybody done the math? I know its hard - like Turbo Tax was a big challenge for little Timothy - but come on folks. More liberal nanny state regulations.

Yippee!
 
Wow, you sure have an obsession with my ass, and it also appears the same obsession exists with wiping it. Are you making an offer?

Sure am. Got a gross of sandpaper just waiting for all you subversive insurrectionists. I'll wipe all your assholes. Pro bono.

It's gonna be a big crash again tomorrow.

DOW ended up 430 points. This is why I don't take investment advice from retards.
 
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I hate watching videos on the internet, but take some time and watch this guys rant. He pretty much sums up how I feel about all this shit.

MEGS!

Also, sorry, for some reason I thought your name was Greg. I think Greg was the only name that starts with G I could come up with.
 
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I hate watching videos on the internet, but take some time and watch this guys rant. He pretty much sums up how I feel about all this shit.

MEGS!

Also, sorry, for some reason I thought your name was Greg. I think Greg was the only name that starts with G I could come up with.

Agreed Cubbie, but there is a catch. France is about to be downgraded by S&P and they "compromise" all the time. Compromise equates to the growth of government. Until the liberal big spenders and RINOs are thrown out, deadlock is our only option if we are going to reduce government. The France downgrade, when it comes, will remove the blame the Tea Party meme forever - one only has to point to France. It's big government socialism that destroys economies. Europe is an example across the board in every country. Even Germany is starting to feel the pinch of socialism and their bailing out everyone else is only bringing the pain on sooner. Even somewhat fiscally sane socialists countries are doomed in the end. Unsustainable. The Tea Party is saving this country for future generations.
 
http://news.yahoo.com/exclusive-congress-panel-probing-p-downgrade-210435669.html

Sorry guys, we are not that stupid.

The liberals are investigating S&P and blaming S&P, stating the downgrade was unwarranted and that S&P is at fault. Oh wait, the liberals are also blaming the Tea Party for the downgrade. Hmmm...When conflicting messages that are mutually exclusive collide the implied collective statement is: it is our fault, we know it, and now we need to deflect blame and deflect it fast. You can't have it both ways guys. We are not idiots.

And people thought the liberals were not panicking. Can anyone say Wisconsin?
 
While rare, I can be a little slow sometimes. It did not hit me until I read it again after a co-worker gave me a sideways look that I did not catch the obvious, which is what I do for a living in world of high-speed signal integrity simulations and debugging, as well as politics and economics.

The Fed was very specific about how long interest rates were going to stay low - he said until mid 2013. Not the usual wording of indefinite or until further evaluation, but an actual time-frame. This is telegraphing that the Fed knows the economy will be weak until at least mid-2013. That is why the uptick, then the big plunge (with the false S&P rumors about a France downgrade) before some uptick but still in negative territory after the S&P reaffirmed the French rating. The market is pricing in a recession that will last almost two years (or at least a very anemic economy). If Obambi was hoping the economy would save him, well he had better think again. With the uncertainty in Europe and the explicit reference by the London rioters to class warfare along with the associated images of century old landmarks that survived the German blitz destroyed by government teat sucking entitlement children. Along with the rest of Europe, a downgrade is sure to come for many European countries - including France. I am not hinging my bets on any of this turning out good in the short term and don't know where to turn for a safe haven (gold may even experience a bubble burst). So it will be quick short buys and sells with no long-term stays.

What a world Socialism has created. Obambi still has 16 months to do more damage, but with Perry now in the race, I think the rhetoric and meme war will quickly shift to the GOP side and the liberal members of the Super Commission will find themselves in a real pickle. As Socialism is seen to fail not just with news stories of European bailouts and the possible breakup of the Union itself, but with graphic images of entitlement minded youths destroying an entire country's historical identity, the fear on the Democrat side will be palpable. I see the party itself slowly moving back to the party of JFK and the Marxists getting marginalized over time - perhaps a decade or so.

With three members of the fed voting no on the tactic, this is almost tantamount to mutiny. Usually you get unanimity or a single dissenter.

This news is actually quite big.
 
Holy crap, what a shot across the bow of Socialism by the British Chancellor of the Exchequer. This is exploding on Drudge and across the internet. It is a damning indictment against everything Obama stands for and has now been commended to the House of Commons. Wow, just wow. I am at a loss for words: Statement by the Chancellor of the Exchequer, Rt Hon George Osborne MP, on the global economy - HM Treasury

Mr Speaker, people will be concerned about the turmoil in the world’s financial markets and what it means for economies here and across the globe.

I want to use the opportunity of the recall of Parliament to update the House on what we are doing to protect Britain from the storm and to help lead a more effective international response to the fundamental causes of this instability.

As of this morning, after heavy losses yesterday, markets in Asia and Europe are calmer.

But over the past month:

The Dow Jones index has fallen by over 14%;

The French market is down 23%, the Nikkei by 11%

And it is striking that the German market is down 24% and even Chinese equities are down 20% since November.

Bank shares in all countries have been hit particularly hard.

Many sovereign bond markets too have been exceptionally volatile – with market rates for Italian and Spanish debt soaring, before falling back in the last three days.

Sadly Britain is not immune to these market movements.

In the last month, the FTSE 100 is down by 16% and British bank shares have also been hit hard.

However, while our stock market has fallen like others, there has been one striking difference from many of our European neighbours.

The market for our government bonds has benefitted from the global flight to safety:

UK gilt yields have come down to around 2.5% - the lowest interest rates in over 100 years;

And earlier this week the UK’s Credit Default Swap spread, or the price of insuring against a sovereign default, was lower than Germany’s.

This is a huge vote of confidence in the credibility of British Government debt and a major source of stability for the British economy at a time of exceptional instability.

And it is a reminder of the reckless folly of those who said we were going too far, too fast.

We can all see now that their approach would have been too little, too late – with disastrous consequences for Britain.

Mr Speaker, it is not hard to identify the recent events that have triggered the latest market falls.

There has been the weak economic data from the US and the historic downgrade of that country’s credit rating.

And the crisis of confidence in the ability of Eurozone countries to pay their debts has spread from the periphery to major economies like Italy and Spain.

But these events did not come out of the blue.

They all have the same root cause.

Debt.

In particular, a massive overhang of debt from a decade-long boom when economic growth was based on unsustainable household borrowing, unrealistic house prices, dangerously high banking leverage, and a failure of governments to put their public finances in order.

Unfortunately, the UK was perhaps the most eager participant in this boom, with the most indebted households, the biggest housing bubble, the most over-leveraged banks and the largest budget deficit of them all.

History teaches us that recovery from this sort of debt-driven, financial balance-sheet recession was always going to be choppy and difficult.

And we warned that would be the case.

But the whole world now realises that the huge overhang of debt means that the recovery will take longer and be harder than had been hoped.

Markets are waking up to this fact.

That is what makes this the most dangerous time for the global economy since 2008.

I think we should be realistic about that.

I think we should set our expectations accordingly.

As the Governor of the Bank of England said yesterday, and the head of the Office for Budget Responsibility has also noted, the British economy is expected to continue to grow this year.

Some 500,000 new private sector jobs have been created in the last 12 months – the second highest rate of net job creation in the G7.

But instability across the world and in our main export markets means that, in common with many other countries, expectations for this year’s growth have fallen.

This is what our response must be.

First we must continue to put our own house in order.

I spoke again yesterday to Sir Mervyn King, and I can confirm that the assessment of the Bank, the FSA and the Treasury is that British banks are sufficiently well capitalised and are holding enough liquidity to be able to cope with the current market turbulence.

We have in place well developed and well rehearsed contingency plans.

We must also continue to implement the fiscal consolidation plan that has brought stability to our bond markets.

I believe that events around the world completely vindicate the decisions of this Coalition Government from the day it took office to get ahead of the curve and deal with this country’s record deficit.

While other countries wrestled with paralysed political systems, our Coalition Government united behind the swift and decisive action of in-year cuts and the Emergency Budget.

While other countries struggle to command confidence in their fiscal forecasts, we have created an internationally admired and independent Office for Budget Responsibility.

These bold steps have made Britain that safe haven in the sovereign debt storm.

Our market interest rates have fallen, while other countries’ have soared.

And the very same rating agency that downgraded the United States has taken Britain off the negative watch that we inherited and reaffirmed our AAA status.

This market credibility is not some abstract concept – it saves jobs and keeps families in their homes.

Families are benefitting from the lowest ever mortgage rates and companies are able to borrow and refinance at historically low rates, thanks to the decisions we have taken.

Let me make it clear, not only to the House of Commons, but to the whole world.

Ours is an absolutely unwavering commitment to fiscal responsibility and deficit reduction.

Abandoning that commitment would plunge Britain into the financial whirlpool of a sovereign debt crisis, at the cost of many thousands of jobs.

We will not make that mistake.

The second thing we need to do is to continue to lead the international response in Europe and beyond.

In the G7 statement agreed between finance ministers and central bank governors this week we said that we would “take all necessary measures to support financial stability and growth”.

In the Eurozone, there is now a growing acceptance of what the UK Government has been saying, first in private and now in public, for the last year – that they too need to get ahead of the curve.

Individual countries must deal with their deficits, make their economies more competitive and strengthen their banking systems.

Existing Eurozone institutions need to do whatever necessary to maintain stability, and I welcome the ECB interventions through its Securities Markets Programme this week to do just that.

But this can only ever be a bridge to a permanent solution.

I have said many times before that the Eurozone countries need to accept the remorseless logic of monetary union that leads from a single currency to greater fiscal integration.

Many people made exactly this argument more than a decade ago as a reason for Britain staying out of the single currency – and thank God we did.

Solutions such as euro bonds or other forms of guarantees now require serious consideration. And they must be matched by much more effective economic governance in the Eurozone to ensure fiscal responsibility is hard wired into the system.

The break-up of the euro would be economically disastrous, including for Britain, so we should accept the need for greater fiscal integration in the Eurozone, while ensuring we are not part of it and our own national interests are protected.

That is the message the PM has clearly communicated in his calls with Chancellor Merkel, President Sarkozy and others this week.

And I have done likewise with individual finance ministers, in Ecofin and in the G7 call at the weekend, and will do so again at the September Ecofin and G7 meetings.

But this is a global, as well as a European, crisis.

At this autumn’s meetings of the IMF and the G20 we need far greater progress on global imbalances.

We need an international framework that allows creditor countries like China to increase demand and debtor countries to make the difficult adjustments necessary to repay them.

Everyone knows what needs to be done, but progress so far has been frustratingly slow, with lengthy disagreements on technical definitions let alone any concrete actions.

The barriers are political not economic, so it is up to the world’s politicians to overcome them. There are no excuses left.

Finally, the UK, like the rest of the developed world, needs a new model of growth.

Surely we have now learnt that growth cannot come from yet more debt and government spending?

Those who spent the last year telling us to follow the American example with yet more fiscal stimulus need to answer this simple question: why has the US economy grown more slowly than the UK’s so far this year?

More spending now, paid for by more government borrowing and higher debt, would lead directly to rising interest rates and falling international confidence that would kill off the recovery not support it.

Instead, we’ve got to work hard to have a private sector that competes, that invests, that exports.

In today’s world, that is the only route to high quality jobs and lasting prosperity.

In the developed countries, and especially in Europe, that means making the difficult structural reforms needed to restore competitiveness and improve the underlying performance of our economies

Internationally we have the greatest stimulus of all sitting on the table in the form of the Doha round – a renewed commitment to free trade across the world – that should be taken up now.

Here in Britain our Plan for Growth has set out an ambitious path.

23 of the measures in the Plan for Growth have already been implemented.

Another 80 are being implemented now.

On controversial issues such as planning reform we will overcome opposition that stands in the way of prosperity.

On tax we have already cut our corporation tax by 2p, with three more cuts to come over the next 3 years.

In welfare and education reform we will continue to pursue a radical reforming agenda.

But there is much more we can do – much more that we must do if we are to create a new model of sustainable growth.

All of us in the House must rise to that challenge in the months ahead and confront the vested interests. They are the forces of stagnation that stand in the way of growth

Mr Speaker, in these turbulent times for world markets we will:

Continue to lead the international response;

Redouble our efforts to remove the obstacles to growth;

And stick to our plan that has made Britain a safe haven in the global debt storm.

And I commend this statement to the House.
 
ROFLMAOPIMP x 2: Krugman: You know what this economy needs? A space alien invasion! Hot Air

Oh. My. God. And this man won a Nobel Prize. What makes him think that digging a ditch and refilling it and then using the tax dollars generated and paid to the worker will actually do anything? Where is the product? A hole that you filled back in? Wow, liberals are getting desperate. As the piece states - government takes money from active production. Does any sane person believe that if most of us just quit our jobs, got paid for digging and refilling ditches that the economy would recover? What, are we all going to then purchase said filled holes?

But Krugman has a backup plan and it's a woozy while also being an admission that it was not the great deal that got us out of the great depression but WWII. Give War a chance man.

Krugman talks about how well the economy would do if we only had to spend like crazy to protect ourselves from....da da da!!!!!! - space alien invasion. Egads! Time for the liberals to go off an try to piss off some outer space colonizing bastards. Perhaps he is thinking the Klingons are on their way. Oh no! :eek:
 
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