‘The most popular investment among congressional members reads as a who’s who list of the most powerful corporate political forces in Washington, D.C. — companies that each spend millions, if not tens of millions of dollars each year lobbying federal officials,’ states the CRP report. In addition to Bank of America, Goldman Sachs, Wells Fargo, JPMorgan Chase and Citigroup were popular holdings. All of them received funding under the TARP.
Ahh yes. Now there’s change we can believe in.
What happens when the monetary policy of the Federal Reserve and the economic policy of the Obama administration collide? We can all sit by and see what a currency war is all about in this global economy, and how it will impoverish us as a nation and as a people. Or, we can step up and make the hard choices. At this point, there are no easy ones left to make.
The problem we’re in was not caused from our taxes being too low. We’re in this mess because spending has been out of this world, and, woefully misdirected. Misdirected in the sense that preserving a capitalist and free market economy is the goal. And given where we are today, do you believe that the Obama administration shares that goal?
Is there an economist out there that can explain the confluence of bad monetary policy and equally bad economic policy, so that the dumb masses can understand it? And, is there a newspaper bold enough to put it on the front page, above the fold?
This entertaining and informative video that explains what Fed. Chairman Ben Bernanke has done under ‘quantitative easing.’
I think it is time for the same congressional committee that on June 3, 2009 heard Bernanke testify, under oath, that the Fed is not and would not monetize the debt to call him back on this one. Forget the small stuff with baseball players lying to congress under oath. It’s time to start at the horse’s mouth. Or, depending on your perspective, the other end.
After impeachment, sentence him to Club Gitmo for a term determined by the length of time it takes to have a Conservative (not Republican, but Conservative) majority in the House, Senate, and The White House for having caused more damage to America’s future than 19 terrorists did on 9/11/2001.
A random act of culture happened in Macy’s (formerly John Wanamaker’s) in Philadelphia last week, perpetrated by the Opera Company of Philadelphia. See if you can watch this video without tearing up. This brought about a union of people from all walks of life like no other. Only in America? Maybe so.
Another example of how stimulus money is being spent. How about $700,000 to study cow burps? Remember this, candidate, then President, Obama said he would not rest until every one that wanted a job could get one.
It’s been awhile since we’ve seen a little shock and awe. Here is a new Israeli hand fired tank buster. Shown here destroying the ordinance in the tank and its crew. The four other Syrian tanks following this one turned around.
Want to see the reason that this global war on terror will be a long one? Maybe a generation or two? Can’t wait to see what C.A.I.R. has to say about this child preacher. Nothing Islamophobic about this. Sad thing about it is, this isn’t the first child raised with the terrorist mindset, and won’t be the last.
The unemployment model in Europe is taking shape in the United States. When you look at historical unemployment rates across the pond you will understand why President Obama ‘fears’ the U.S. economy could enter a ‘new normal.’
The dirty little secret here is that this isn’t his fear. High unemployment is incidental to his goal. It is the community organizer’s way of moving forward with his agenda to ‘transform America.’
It is what happens when the government leans socialist and labor is pretty much owned by unions rather than a free market. It is no coincidence that Andy Stern, the president of the SEIU, is the most frequent guest at The White House. And they are nowhere near finished. The end-game where SEIU is concerned is to have taxpayers bail out the union’s underfunded retirement programs. Next up, Card Check. One step at a time.
Link: Obama says he fears economy could enter ‘new normal’ of low job growth.
Guess who said the following: “We have tried spending money. We are spending more than we have ever spent before and it does not work.” Was it Sarah Palin? Rush Limbaugh? Karl Rove?
Not even close. It was Henry Morgenthau, Secretary of the Treasury under Franklin D. Roosevelt and one of FDR’s closest advisers. He added, “after eight years of this Administration we have just as much unemployment as when we started. . . And an enormous debt to boot!”
Read the rest of ‘Guess Who?’ by Thomas Sowell
It was Yogi Berra who said It’s Deja Vu All Over Again. It was Edmund Burke (1729-1797) who said ‘Those who don’t know history are destined to repeat it.’ It’s been 80 years since The Great Depression. Apparently our leaders in Washington have not studied American history.
It was two weeks ago when the G20 met to pretend that global inflation or a currency war was not going to happen. The media was pre-occupied with helping Democrats get elected so they didn’t make a big deal of it. As it turns out, they weren’t too successful. Neither was the G20.
It was only yesterday that The Lunch Counter called your attention to the consequences of the Federal Reserve (Ben Bernake) fiscal action of monetizing the country’s debt. All done as a last-ditch effort to save an economy that isn’t being saved by President Obama’s economic policies.
If today’s headlines don’t give you cause to worry, then I don’t know. How about not voting in a federal election ever again until you figure it out?
Federal Reserve Chairman Ben Bernake said he will ‘help’ the economy again by buying down our unsustainable debt by $600 Billion. He says the Fed will buy bonds to do it. OK fine. Except for the fact that they will be printing money to pay for it. That is called monetizing the debt. Something that Bernake said he would not do. There’s a nifty word for it. They call it Quantitative Easing.
The result of crushing debt will cause one of two things to happen. Declare bankruptcy and start over. A move that would have worked and would have been a lot cheaper if the banks, Freddie, and Fanny were allowed to do it a couple of years ago. But now, the Obama administration and Congress has increased the debt to the point that our country and foreign countries are affected, not just companies. Foreign countries would have a meltdown if we were to declare bankruptcy. OK, maybe that should still be on the table. That will teach them to believe our leaders in Washington. I mean, if China said two years ago, “no, we’re not buying your debt any more. You need to live within your means,” we wouldn’t be looking at hyper-inflation being just around the corner.
The other option is to just print more money. What Bernake did today. Gee, all that will do will cause your savings, earnings, and investments to shrink to levels that would mean you can forget about retiring. You’ll have to work until you die, because a dollar will be worth less than a quarter, if we’re lucky. And, our debt that China, Russia, and other countries are holding will be just as worthless. And Obama just doesn’t understand why companies aren’t hiring? Maybe it’s because the need to survive is taking priority right now.
Why is all this happening? Because we have economic imbeciles in Washington that think you can put a fire out by putting gasoline on it. Some of them got thrown out yesterday. But there is still a lot of unfinished business there.
Links: Ben Bernake: Impeach Me – I’m A Damned Liar in [Market-Ticker] | Fed will spend $600B in latest bid to help economy
Harken back sixteen months ago when President Obama said this, ‘What I have no interest in doing is running GM,’ concerning the GM bailout and government ownership of 60% of the company.
Enter a little no spin zone with this little ditty from Reuters . . .
The Obama administration and GM executives say the White House has stayed good to its pledge to refrain from meddling in the day-to-day management of this 102-year-old industrial enterprise . . .
OK, that is if you don’t count the administration putting their own people on the Board of Directors, closing product lines, closing dealerships, and telling them what kind of car to make.
Now with an impending IPO of the new and improved BM (Barack Motors), or for the record, GM, we find that it is still the administration calling the shots.
Don’t you know the M.O. by now? We’re supposed to pay attention to what Obama says instead of what he does. He is counting on the dumb masses never finding out that he is an empty suit filled with Karl Marx stuffing.
Link: Special Report: For GM IPO, the government is back-seat driver | Reuters.
Florida gubernatorial candidate Khavari calls for nationwide mortgage strike
Miami, FL October 30— Noted economist and independent candidate for Florida governor on Tuesday’s ballot today called for all Americans to withhold their mortgage payments to apply pressure to banks.
“Foreclosures are rampant and there is no end in sight as long as unemployment is high. And there is no reason to expect unemployment to do anything but get worse,” said Khavari. “My economic plan for Florida will generate a million jobs in 4 years, but foreclosures will continue to rise unless we do something now.
“The banks brought us the housing bubble. They drove up home prices and wrote millions of stupid loans. Then they bet on the loans failing, using credit default swaps and collateralized debt obligations.
They won the bets and collected their money, so why are they crying? Meanwhile, they have raised interest rates, cut credit lines, and lowered almost everyone’s credit score, including the majority of people who never missed a payment,” Khavari said. “This has brought our economy to a standstill.
“Until we clear up the foreclosure crisis, the economy can’t move forward. And the banks are doing nothing but making it worse. They collect on their bets, then grab the homes and put families in the street using bogus documents. Then they sit on the houses because they don’t want to admit they are worth less than their books show.
“Every family in America lost out, but we bailed out the biggest insurance company and the biggest banks in America, and their employees collected billions in bonuses. And what have they done since but destroy our economy? The banks need a wake-up call, like a two-by-four upside their heads,” Khavari said.
“If every American family would withhold their mortgage payments, and save that money in a bank other than where they have their mortgage, we could get the banks back to come clean, or else get rid of them forever. Specifically, we must withhold payments until every bank does the following:
“First, issue a statement showing their total mortgage activity since 2006, and a summary of all the derivatives they speculated in, all the CDO’s and credit default swaps.
“Second, every homeowner must be informed of what the bank did with their mortgage, including packaging it, slicing and dicing it into so-called securities—and exactly how many derivative bets the bank made on that very mortgage. We’ll see how much the banks stand to collect—and from whom– when you don’t pay the mortgage.
“Third, every homeowner must be informed exactly where their original mortgage note is, who owns it now, and how they can see it if they wish to.
“Fourth, the bank must negotiate in good faith to reduce the principle balance according to the new market reality, which was brought about by the banks in the first place.
“Fifth, the banks must refinance at 2% fixed rates for 15 years based on current market value.
“Sixth, the banks must inform each customer how much money they donated for the past five years to every political party, lobbying organization or political fund of any kind.”
“The alternative,” said Khavari, “is for us to create the Bank of the State of Florida, which can just buy all the houses from the banks at the current market value, say 50% of the original value, and issue the 2% 15-year mortgages ourselves, while leaving the families in their homes. We have already shown that this could earn billions per year for the state of Florida while saving Floridians 50% to 75% of the long-term cost of owning a home.
“This will create a thousand times more jobs than any stimulus plan or tax cut. It would stabilize our housing market at prices that are fair to buyers and to builders. And our kids will be able to afford homes, too.
“Already foreclosure affects over one out of seven homes in Florida. If we wait to act until it is one out of five, it will be the end of our economy. Many people think this does not affect them. They pay their mortgage, they have a job, and life goes on. Well, just as a rising economic tide floats all boats, an economic tidal wave drowns everyone, rich and poor alike.
“The banks have abused their power to create money out of thin air and charge interest for it. Just when the economy needs consumer demand and spending, they raised credit card rates to 30% and raised the minimum payments, just to be sure that there is no available cash to spend on anything but paying the banks. Their time is over. A state bank could earn countless billions issuing 6% credit cards, and there is no reason the commercial banks can’t do that, too—except for simple greed.”
Khavari’s plan for a bank owned by all the people of Florida has received national acclaim and has since been adopted by gubernatorial candidates of at least three parties in seven states, and several similar proposals are pending in state legislatures across America. His job creation plan is based on organizing demand, rather than tax cuts.
“On Tuesday, Floridians have an opportunity to choose a governor who will fix our economy. I am the only candidate with a real economic plan. I am an economist, not a politician. We are in this mess because the banks and insurance companies have bought the political parties and call the tune for the politicians. More people than ever are voting against big party politics. This is a good year for independents and can be a great year for Florida,” Khavari said. “Be sure to vote!”
Farid Khavari, Ph.D., is a respected economist and author of nine books, including Environomics. His economic plan is detailed at www.khavariforgovernor.com. He is on the Florida ballot as an NPA (no party affiliation) candidate for governor.