Tag Archives: deficit spending

Cheery Thought For Today! Iceland Shrinks 8% as Prices Increase 11% in Deepest Recession! Hey Deflationistas Notice That Economy Is Shrinking While Prices Sky-Rocket…!

Aren’t prices supposed to go down when you have a recession? Well yea unless you have devalued your currency so much that no one takes the “promise” of its value seriously. And when your currency is not attached to any rational measure of value promises is all you will get from the Government. Promises from governments have always worked out so well for those who have believed in them.

Well America watch carefully to see the predicament Iceland finds itself in because that is where we are heading…fun fun fun till the daddy (China, Japan and other buyers of US debt) takes the T-Bird (they stop buying our promises)…away. The fun is just beginning not ending. Green shoots indeed! Those clowns who are selling that crap should be prosecuted and jailed. Back in the day they would be tarred and feathered…for killing the light of the world (United States) the penalty should start there.

Worst Recession

Iceland’s economy will shrink 8.5 percent this year and consumer prices will climb 11.7 percent, both the worst performances among the world’s 33 advanced economies, according to the IMF’s latest forecasts. As the rest of the world begins to recover, Iceland’s recession will stretch into next year, with the economy contracting 2 percent, more than any developed nation except Ireland. Iceland Shrinks 8% as Prices Increase 11% in Deepest Recession – Bloomberg.com

Neat that Central Banks the world over are starting to short the dollar…this is going to leave a mark. From a Barclay’s report:

No one wants to be caught holding too many dollars, and this rising reluctance is increasing pressure on the USD. This is an obvious USD negative, but it is also means that the ECB and the EUR are caught between a rock and a hard place. The capital flows into the EUR have very little to do with any euro area cyclical dynamism. If the ECB were the BoC, it would label the current EUR appreciation as undesirable “type 2” flows driven by capital flows that do not reflect fundamentals. However, as anyone who has been to the doctor knows, getting a diagnosis is not quite the same as being cured.

Hat Tip Zero Hedge where some of the finest reporting on the economy is going on right now.

Everything Old Is New Again! “Steal $500 from a politician and it is a crime, steal a trillion and it is a statistic”

The more things change the more they stay the same…

“The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance.”
— Cicero – 55 BC

That was a comment at the always interesting Fabius Maximus when Fabius asked how to fix what is broke in the United States.

Ironically here is the comment that was directly below.

Agenda as follows:
1. Get out of Afghanistan. There’s no threat there, and it’s too expensive.
2. Reform health care, and socialize all its costs. Lower payments to doctors, hospitals, and pharmaceutical companies.
3. Adopt diversified energy policy to provide a wide base of energy sources. Modernize electrical grid.
4. Establish 40 year plan to update and modernize rail freight and passenger services. Make work and make something at the same time.
5. Re-balance income equities through a combination of much higher taxes on the well-off and much higher wages for the less well-off.
6. Invest in highest quality educational infrastructure: schools as edifices. Increase teacher standards, teacher training, and teacher pay.
7. Get banking in line. After defense and space exploration, no sector is as dependent on government support as the financial sector. How the hell do those guys pay themselves so much money?
Write the White House, contact your congressmen, badger the media. Work, work, work.

That has to be Rahm Emanuel’s sock puppet since that list is right out of the Obama playbook and it is what will kill this country.

What is wrong with this country is us.

We have become corrupt, fat, lazy, scared, disgusting individuals who believe that somehow the greatness of our ancestors rubs off on us without our having to endure any of the privations that forged our ancestors. We are more interested in box scores than politicians, even when those politicians are engaged in a theft so massive that no one can believe it. We pay more attention to yards gained than we do to laws broken. We pay more attention to points scored than we do to freedoms lost. We get more upset by victory’s of sports teams than the losses at the hands of corrupt politicians of our pension funds.

Perhaps we should apply Stalin’s quote: “One death is a tragedy. A million deaths is a statistic.” it seems that our politicians are using this line of thinking regarding our money.

“Steal $500 from a taxpayer and it is a crime, steal a trillion and it is a statistic”.

Hope and Change…Record Unemployment in 8 States! Weeeeee isn’t this fun? Thanks a bunch Obama Voters!

In Obama’s defense "Obama said The US Economy is not the economy he knew for 20 years.”

8 states see record unemployment rates in May

WASHINGTON (AP) — The unemployment rates in eight states hit record-highs last month and only two — Nebraska and Vermont — did not report increases.

The Labor Department says 48 states and the District of Columbia saw employment conditions deteriorate last month. The fallout from the longest recession since World War II, was the worst in Michigan. Its unemployment rate rose to 14.1 percent. 8 states see record unemployment rates in May – Yahoo! Finance

Green Shoots? Sure take a look at these charts from Vox’s post a Tale of Two Depressions. (Hat tip Atlantic’s Derek Thompson) Let’s just ignore the silly idea that more debt will lead us out of this disaster and concentrate on the disaster in the making. We are well and truly screwed…

World Industrial Output Compare and Contrast Depressions World Stock Markets Compare and Contrast Depressions
Volume of World Trade Compare and Contrast Depressions Central Bank Discount Rates Compare and Contrast Depressions

 

Industrial output, four big Europeans, then and now

Industrial output, four big Europeans, then and now

Yea things are looking FABULOUS! Green Shoots popping up all over the place…

About the idea that spending money will fix this…err no. If you want to find out what is going to happen and if you really want to know how to fix this then you have to listen to those folks who called this disaster in the first place. Start with Peter Schiff then move to this which is an essential piece of the puzzle. Why listen to folks whose premises about the economy have been wrong all along? To predict the future in economics you have to at least prove that you were successful in the past. Why listen to economists who were predicting nonsense like this:

February 28, 2007 – Dow Jones @ 12,268

March 13th, 2007 – Henry Paulson: “the fallout in subprime mortgages is "going to be painful to some lenders, but it is largely contained."
March 28th, 2007 – Ben Bernanke: "At this juncture . . . the impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained,"

March 30, 2007 – Dow Jones @ 12,354

April 20th, 2007 – Paulson: "I don’t see (subprime mortgage market troubles) imposing a serious problem. I think it’s going to be largely contained." , "All the signs I look at" show "the housing market is at or near the bottom,"

April 30, 2007 – Dow Jones @ 13,063

May 17th, 2007 – Bernanke: “While rising delinquencies and foreclosures will continue to weigh heavily on the housing market this year, it will not cripple the U.S.”

May 31, 2007 – Dow Jones @ 13,627

June 20th, 2007 – Bernanke: (the subprime fallout) “will not affect the economy overall.”
July 12th, 2007 – Paulson: "This is far and away the strongest global economy I’ve seen in my business lifetime."
August 1st, 2007 – Paulson: "I see the underlying economy as being very healthy,"
October 15th, 2007 – Bernanke: "It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions."

December 31, 2007 – Dow Jones @ 13,265
January 31, 2008 – Dow Jones @ 12,650

February 14th, 2008 – Paulson: (the economy) "is fundamentally strong, diverse and resilient."

Let’s jump ahead since my head will explode if I have to read too much of these clowns bullshit. Keep in mind that this was the consensus opinion of mainstream Keynesian economists.

Where did they end up?

August 10th, 2008 – Paulson: “We have no plans to insert money into either of those two institutions.” (Fannie Mae and Freddie Mac)
September 8th, 2008 – Fannie and Freddie nationalized. The taxpayer is on the hook for an estimated 1 – 1.5 trillion dollars. Over 5 trillion is added to the nation’s balance sheet.

September 16th, 2008 – $85 Billion AIG Bailout “Loan”

September 19th, 2008 – $700 Billion Bailout Plan Announced
September 19th, 2008 – Paulson: "We’re talking hundreds of billions of dollars – this needs to be big enough to make a real difference and get at the heart of the problem," he said. "This is the way we stabilize the system."
September 19th, 2008 – Bernanke: "most severe financial crisis" in the post-World War II era. Investment banks are seeing "tremendous runs on their cash," Bernanke said. "Without action, they will fail soon."
September 21st, 2008 – Paulson: "The credit markets are still very fragile right now and frozen", "We need to deal with this and deal with it quickly.", "The financial security of all Americans … depends on our ability to restore our financial institutions to a sound footing."
September 23rd, 2008 – Paulson: "We must [enact a program quickly] in order to avoid a continuing series of financial institution failures and frozen credit markets that threaten American families’ financial well-being, the viability of businesses, both small and large, and the very health of our economy,"
September 23rd, 2008 – Bernanke: "My interest is solely for the strength and recovery of the U.S. economy,"

October 31, 2008 – Dow Jones @ 9,337
March 31, 2009 – Dow Jones @ 7,609

Great Job Guys! Yea let’s listen to folks like these two clowns. Well Hope and Changey exchanged Tim Geitner for Paulson at the Treasury…so now we are being led by a person who not only has the same corrupt philosophy as Paulson but who is also a tax cheat. Yea that is a good idea. And yes both of them share the same statist philosophy.

Now explain to me how anyone believes that Obama is trying to do anything except SINK THIS COUNTRY!

CUDA ATTACK! SARAH DOES WHAT NO OTHER REPUBLICAN HAS THE BALLS TO DO! ATTACK OBAMA! WHY IS IT THAT ONLY REPUBLICAN WOMEN ARE TOUGH? WHERE ARE THE MEN???? SARAH PALIN 2012!

Sarah taking it to that bastard in the White House! You Betcha!

PALIN: That’s how I feel! I feel like… and I think that more and more constituents are going to open their eyes now and open their ears to hear what is really going on and realize ok… Maybe we didn’t have a good way of expressing that, or articulating that message of ‘here is what America could potentially become if we grow government to such a degree that we cannot pay for it and we have to borrow money from other countries, some countries that don’t necessarily like America.

And this many months into the new administration, quite disappointed, quite frustrated with not seeing those actions to rein in spending, slow down the growth of government. Instead Sean it is the complete opposite. It’s expanding at such a large degree that if Americans aren’t paying attention, unfortunately our country could evolve into something that we do not even recognize.

HANNITY: Socialism?

PALIN: Well, that is where we are headed. That is where we have to be blunt enough and candid enough and honest enough with Americans to let them know that if we keep going down these roads… nationalizing many of our services, our projects, our businesses, yes that is where we would head. And that is why Americans have to be paying attention. And we have to have our voices heard. And ultimately it need to be our will, the American people’s will imposed on Washington, instead of the other way around.

The interview is set to air tonight on FOXNEWS, 9 PM ET.  DRUDGE REPORT: PALIN: ‘TOLD YA SO’ 2009®

Here is EXACTLY what she predicted in 2008 in her acceptance speech. Sarah got it exactly right.

This is a man who can give an entire speech about the wars America is fighting and never use the word "victory" except when he’s talking about his own campaign. But when the cloud of rhetoric has passed … when the roar of the crowd fades away … when the stadium lights go out, and those Styrofoam Greek columns are hauled back to some studio lot — what exactly is our opponent’s plan? What does he actually seek to accomplish, after he’s done turning back the waters and healing the planet? The answer is to make government bigger … take more of your money … give you more orders from Washington … and to reduce the strength of America in a dangerous world. America needs more energy … our opponent is against producing it.

Victory in Iraq is finally in sight … he wants to forfeit.

Terrorist states are seeking nuclear weapons without delay … he wants to meet them without preconditions.

Al-Qaida terrorists still plot to inflict catastrophic harm on America … he’s worried that someone won’t read them their rights? Government is too big … he wants to grow it.

Congress spends too much … he promises more.

Taxes are too high … he wants to raise them. His tax increases are the fine print in his economic plan, and let me be specific.

The Democratic nominee for president supports plans to raise income taxes … raise payroll taxes … raise investment income taxes … raise the death tax … raise business taxes … and increase the tax burden on the American people by hundreds of billions of dollars. My sister Heather and her husband have just built a service station that’s now opened for business — like millions of others who run small businesses.

Any questions?

Sarah 2012

Because This Country Isn’t Far Enough Into Debt…LET’S SPEND MORE! LightWorker Promises More Of The Guys Who Originally Screwed The Pooch on the Economy! Weeeeeeeeee!

Because when you are 0-1,000,000 ya need to try again. After all just because you have failed the last million times doesn’t mean that this very next time won’t succeed! Definition of insane by Alfred Einstein, Insanity: doing the same thing over and over again and expecting different results.

President-elect Barack Obama said he’ll make the “single largest new investment” in roads, bridges and public buildings since the Eisenhower Administration to lift the sagging economy and create jobs.

Obama, in his weekly radio speech today, said his plan to create or preserve 2.5 million jobs will also include making public buildings more energy efficient, repairing schools and modernizing health care with electronic medical records.

“We won’t just throw money at the problem,” he said. “We’ll measure progress by the reforms we make and the results we achieve — by the jobs we create, by the energy we save, by whether America is more competitive in the world.” Bloomberg.com: Worldwide

So then we go back to the gentleman who alone of the so-called economists correctly predicted our current dilemma Peter Schiff. If you don’t remember him or have never heard of him well:

"Nobody wants to listen to somebody like Peter because they don’t want to hear the message," she says. "When we launched Fox Business, he came on the show in October [2007] and flat out said among a whole panel of people, ‘The Dow is going below 10,000.’ At the time the Dow was around 14,000, and most of the people on the set burst out laughing. Look where we are today."

Of course, all that cold reality can be a bit much—like the time Claman and Schiff were out with their children and Schiff noticed a discarded old RCA television set on the sidewalk.

" ‘Look at this!’" Claman recalls him shouting. " ‘This very well may be the last thing the U.S. has truly manufactured here. This country’s not manufacturing anything here anymore, and that’s why we are going to lose the super-power race.’ And I’m like, ‘Peter, can’t we just play in the park?’"

So naturally because the LightWorker’s goal is not to save the country but to destroy it he proposes exactly the worst thing we could do to recover…spend more money we haven’t earned.

While calling the federal budget deficit he will inherit “enormous,” Obama said economic recovery is more important, “and that means that we can’t worry, short term, about the budget deficit.”

Schiff is extremely underwhelmed by the LightWorker.