Blog Archives

Republican Quote for the Day – and how does Ryan’s budget plan fare with former Republican heroes?

“Mr. Ryan’s plan is devoid of credible math or hard policy choices. And it couldn’t pass even if Republicans were to take the presidency and both houses of Congress. Mr. Romney and Mr. Ryan have no plan to take on Wall Street, the Fed, the military-industrial complex, social insurance or the nation’s fiscal calamity and no plan to revive capitalist prosperity — just empty sermons.”

– Former Reagan budget director David Stockman

This means it may be hard for some front-office Republicans to get behind the Romney-Ryan budget onslaught.

Will The Republicans Listen To Bernanke?

The Federal Reserve Chairman made his presentation to Congress today and was not thrilled with the House Republicans’ proposed budget cuts.

What are the odds that these turkeys ignore him?

Here’s a clip from a longer McClatchy article:

clipped from www.mcclatchydc.com

Bernanke: Steep budget cuts this year would threaten economy

Steep spending cuts proposed by Republicans in the House of Representatives would slow the nation’s economic growth, cost jobs and work against the Federal Reserve‘s efforts to stimulate the economy, Federal Reserve Chairman Ben Bernanke warned lawmakers Tuesday.
The nation’s prosperity would be better served by Congress and the White House agreeing on credible legislation to reduce the federal deficit and debt over a longer period of five or 10 years, he told the Senate Banking Committee.
Bernanke was asked repeatedly about GOP proposals to trim anywhere from $60 billion to $100 billion in government spending during the current fiscal year, which ends Sept. 30. These cuts would do little to bring down long-term budget deficits but would slow the economic recovery, he cautioned.
“That would be ‘contractionary’ to some extent,” Bernanke said.
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Who owns the most of U.S. Debt?

The Chinese? After all, that’s what all the politicians, especially the Conservatives, are telling us. The fear that we will be taken over by the Chinese… or that the Chinese will no longer buy our bonds… or that the Dollar will no longer be the trading currency of the Chinese… such a fear is being used to keep Americans in line and ready to vote for a batch of idiots.

But it’s not true. We owe the Chinese 9.8% of our debt, according to the Christian Science Monitor. Japan has 9.6 %, England 5.1%… and other countries have much smaller chunks. In reality, foreigners own  a mere 24.7 percent of our debt.

We owe OURSELVES, however, 53% of our debt… by far the largest number. How is this broken down? As follows:

US individuals hold 12 percent of the country’s debt. Next under the domestic category comes the Federal Reserve, which holds 9 percent of US debt, then pension and retirement funds, mutual funds, and state and local governments.

So when the Congress starts filling us with the China fear, maybe we should send them OUR bill… cash in our bonds and mutual funds… get our city government to send in their invoices.

Did you hear about the Fed?

…this should explain everything:

Got it now?

The Fed’s New Bubble (Masquerading as a Jobs Program)

By Robert Reich, Former Secretary of Labor; Professor at Berkeley.

Extracted from the HuffPo… you should go in and read the whole article:

The latest jobs bill coming out of Washington isn’t really a bill at all. It’s the Fed‘s attempt to keep long-term interest rates low by pumping even more money into the economy (“quantitative easing” in Fed-speak).

The idea is to buy up lots of Treasury bills and other long-term debt to reduce long-term interest rates. It’s assumed that low long-term rates will push more businesses to expand capacity and hire workers; push the dollar downward and make American exports more competitive and therefore generate more jobs; and allow more Americans to refinance their homes at low rates, thereby giving them more cash to spend and thereby stimulate more jobs.

Problem is, it won’t work. Businesses won’t expand capacity and jobs because there aren’t enough consumers to buy additional goods and services.

So where will the easy money go? Into another stock-market bubble.

It’s already started. Stocks are up even though the rest of the economy is still down because of money is already so cheap.

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