Mish's Global Economic Trend Analysis |
- Ron Paul Claims Chairmanship of Monetary Policy Subcommittee, Prepared to Subpoena Fed
- Jerry Brown Says California Budget Deficit May Hit $28 Billion
- Caught in a Massive Lie: Daily Show Comments on Bernanke's Lies Regarding "Printing Money"
- Food Stamp Usage up 16.2% Nationally, over 20% in 13 States; Tables by State, Charts Nationally Since 1970 as % of Population
- Wisconsin Governor-Elect Proposes Abolishing State Employee Unions
- Is the Political Class Economically Incompetent or are they Simply Bought and Paid For?
Ron Paul Claims Chairmanship of Monetary Policy Subcommittee, Prepared to Subpoena Fed Posted: 08 Dec 2010 10:25 PM PST Proving that on occasion the little guy can indeed win, Ron Paul announced to tonight that he will be named Chairman of the Monetary Policy Subcommittee. When asked if he would take over chairmanship of the subcommittee, Paul replied "The chairman of the financial services subcommittee, Spencer Bachus, has told me today verbally that I will be the chairman of that subcommittee. He was the one who appointed me as the ranking member and he is sticking to his guns and that I will have responsibility of that committee." When asked about subpoenas and "audit the Fed", Paul went on to say that he can issue subpoenas but would need agreement from the chairman as well as speaker. It's a good clip, also containing a discussion of proposed legislation to redefine the word "journalist" and redefine the word "publisher", both scary thoughts. Paul would oppose such legislation as being contrary to the first amendment and likened measures to the book "1984". "I have a much broader definition" said Paul. "We all should have those first amendment rights as if we are all journalists". Congratulations to Ron Paul and thanks to all who emailed their support. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
Jerry Brown Says California Budget Deficit May Hit $28 Billion Posted: 08 Dec 2010 08:39 PM PST Wasn't it just a few short months ago California balanced its budget, plugging a $19 billion hole? Indeed it was. Nonetheless, Jerry Brown now warns of a $28 billion hole for the next fiscal year and the state controller warns of more IOUs. Please consider California Deficit May Reach $28 Billion as IOUs Loom California's budget gap may widen to $28.1 billion over 18 months, according to Governor-elect Jerry Brown, who takes charge of the most-populous U.S. state next month. A cash shortage may force the use of IOUs by July, Controller John Chiang said.California allegedly "closed" a budget gap of $19 billion this fiscal year and now faces a $28 billion gap next year. However, and as before, Democrats do not want to cut services and Republicans do not want to increase taxes. I have the perfect solution: Let's throw a party and give everyone cookies like president Obama just did, with Republicans tooting their party horns in agreement. Oh wait. I forgot California, unlike the US has to have a balanced budget. In that case, let's rely on the ol' Arnold Schwarzenegger Play, this time on steroids, and "balance" the budget for the next three years by floating $3 trillion in bonds all at once. Hedge funds and pension plans should love the idea seeing that they chased 3-year Walmart bonds a few weeks ago yielding a mere .7%. Value is for sissies, at least until the bond market revolts (as it is now), with 3-year treasury yields at .94% and rising. This makes saps out of buyers of those Walmart bonds. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
Caught in a Massive Lie: Daily Show Comments on Bernanke's Lies Regarding "Printing Money" Posted: 08 Dec 2010 12:38 PM PST Leave it to the Daily Show to express in a humorous way the blatant lies of Fed Chairman Ben Bernanke about "Printing Money". The amazing thing is Bernanke exposed himself, in his own words. The clip notes an interesting discrepancy with what Ben Bernanke told 60 Minutes in his first infomercial on 60 Minutes in March of 2009 and what he said Sunday December 5, 2010. Flashback March 15, 2009: Ben Bernanke on 60 Minutes- Complete Transcript PELLEY Is that tax money that the Fed is spending?Flash Forward December 2010: Lies, Half-Truths, and 100% Hubris on 60 Minutes; Deficit-Chicken Republicans; Middle-Class Crucifixion; Ron Paul Needs Your Support Bernanke: "One myth that's out there is that what we're doing is printing money. We're not printing money. The amount of currency in circulation is not changing. The money supply is not changing in any significant way. What we're doing is lowing interest rates by buying Treasury securities. And by lowering interest rates, we hope to stimulate the economy to grow faster. So, the trick is to find the appropriate moment when to begin to unwind this policy. And that's what we're gonna do."This is exactly why we need Ron Paul as chairman of the Monetary Policy subcommittee. Here is the Email I sent John Boehner who will replace Nancy Pelosi as the next Speaker of the House. Dear Mr. SpeakerNote: Ron Paul got that Subcommitte - See Addendum 3 Please email House Speaker Boehner Regarding Ron Paul to let him know how you feel. That link will put in a subject line of Ron Paul for Monetary Policy Chairmanship. Please email House Speaker Boehner Regarding the Budget. The second link will put in a subject line of $900 Billion Budget Compromise. Just click on the links and type away to your heart's content. If your browser does not interface with email, then simply email Boehner at AsktheLeader@mail.house.gov Addendum: Reader "JD" writes ... I watched the most recent Bernanke interview on 60 Minutes and was startled by one of Bernanke's responses to the interviewer. When asked how certain he was that QE2 would work, Bernanke replied: "100%!"I talked about the concept of being 100% certain previously as well. Here is the snip from Lies, Half-Truths, and 100% Hubris on 60 Minutes; Deficit-Chicken Republicans; Middle-Class Crucifixion; Ron Paul Needs Your Support 100 Percent HubrisAddendum #2: Caroline Baum has some interesting comments regarding 100% certainty in Bernanke's 21-Month Conversion Takes 60 Minutes He probably wishes he hadn't said it, the part about the Federal Reserve not printing money and his 100 percent confidence in his ability to raise interest rates at the appropriate time to prevent an acceleration of inflation.Addendum 3: Proving that on occasion the little guy can occasionally win, Ron Paul announced to tonight that he will be named Chairman of the Monetary Policy Subcommittee. For details, please see Ron Paul Claims Chairmanship of Monetary Policy Subcommittee, Prepared to Subpoena Fed Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
Posted: 08 Dec 2010 11:35 AM PST The Wall Street Journal reports Food Stamp Rolls Continue to Rise 42.9 million people collected food stamps last month, up 1.2% from the prior month and 16.2% higher than the same time a year ago, according to the U.S. Department of Agriculture.Click on the above link to see a table of all 50 states. Sample Details
13 states had greater than 20% gains in food stamp usage. Not all of them were housing bubble states. Idaho led the way with a 39.1% year-over-year change. Six states had a 25% change or greater. Texas just missed at 24.6% The food stamp program is now called SNAP. It stands for Supplemental Nutrition Assistance Program. Reader Tim Wallace has a couple of national charts I wish to share. Click on either chart for a sharper image. Snap Participants by Year Since 1970 SNAP as a Percentage of the US Population Tim Wallace writes ... SNAP numbers for September just came on line, 42,911,042 - up from 42,389,614 in August, an increase of 521,428 in one month.Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
Wisconsin Governor-Elect Proposes Abolishing State Employee Unions Posted: 08 Dec 2010 10:24 AM PST In the midst of fiscal insanity by Congress and the Obama Administration comes common sense proposals in Wisconsin as the governor-elect may try to gut public union bargaining power. Please consider Walker looks at showdown with state employee unions Governor-elect Scott Walker raised the possibility of essentially abolishing state employee unions on Tuesday as one option to control rising employee benefits costs and eliminate the state's budget deficit.The key question Walker faces is whether or not what he proposes is in violation of federal laws. If outright abolishing unions would break federal laws, then gutting the effectiveness of those laws will have to suffice. However, some of those federal collective bargaining laws may change (hopefully) in the next US Congress. It is disgusting that current Governor Jim Doyle wants to pass lame-duck measures the state cannot afford. In a sense, it is political-pandering insanity as it cannot do Doyle any good and it does go to show just how beholden politicos are to those who donate to their campaigns. For further discussion, please see Is the Political Class Economically Incompetent or are they Simply Bought and Paid For? After watching a $900 billion fiscally insane proposal gather momentum in Congress (see Cookies for Susie and Obama's "Temporary" Tax Compromise; Total Cost $900 Billion), the proposals of Walker are a breath of much needed fresh air. Walker makes me want to stand up and salute just as does governor Chris Christie in New Jersey. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
Is the Political Class Economically Incompetent or are they Simply Bought and Paid For? Posted: 07 Dec 2010 11:31 PM PST Inquiring minds are reading an interesting article in Forbes by writer Charles Kadlec regarding the Economic Incompetence of the Political Class. The sovereign debt crisis now threatening Europe, as well as major American states and cities, discloses the sheer incompetence of a political class that has over-promised, under-delivered and squandered vast amounts of their citizens' wealth.There is much more in the article so you may wish to give it a closer look. It's very rare for me to completely agree with anyone but I find no faults in what Kadlec wrote. Here's the pertinent question: "Why is Political Class Economically Incompetent ?" The answer is actually very easy. Nearly every politician is beholden to someone throwing money into their campaign. For example: public unions feed vast amounts of money into literally every election. Corrupt politicians go along. In most major cities the politicos are in bed with the unions. In San Diego Mayor Jerry Sanders' "Radical Idea" to Cut Costs, I asked if Sanders was a hero or a liar? What I did not know when I wrote that article was that Sanders was the former San Diego Chief of Police. Does that explain why his "radical" for rescuing San Diego exempts police and firefighters from the pain? Does that explain why Sanders, a Republican mayor, wanted to increase sales taxes to "save the city"? Why yes it does, and that is called buying votes. And nearly every city in the country is in trouble for it. Plunder! Steve Greenhut's excellent book Plunder! describes the process. Here is my book review: Five Thumbs Up for Steve Greenhut's Plunder! I do not have five thumbs, but if I did, it would be all thumbs up for Plunder! How Public Employee Unions are Raiding Treasuries, Controlling Our Lives and Bankrupting the Nation by Steven Greenhut.Warmongers The problem of course does not stop with public unions. Anyone opposed to warmongering is labeled "soft on defense" by the warmongering industries who donate billions of dollars to candidates who want "strong defense". Bankers The financial industry does not want reform and they will donate billions to any candidate willing to look the other way. Former Treasury Secretary Hank Paulson and current Treasury Secretary Tim Geithner are both beholden to Wall Street in general, and Goldman Sachs in particular. Geithner did not even pay his taxes and the politicos in power did not care. Running List of Unpunished Fraud, Coercion, Tax Evasion I have a huge ongoing list of fraud and coercion at the very top, including Geithner, Bernanke, and Paulson but nothing will ever happen. Please see FDIC Authorizes $1 Billion Lawsuits Against Failed-Bank Executives; Token Search for Low-Profile Scapegoats for details. The Big Compromise When all the political hacks (the worst politicians money can buy) get together to vote on a "compromise", no one ever gives up anything. Somehow in these compromises, more things we cannot afford get tossed onto the plate. I am thoroughly disgusted with the most recent "compromise" that will add $900 billion to the deficit over two years. Everyone in Congress should know the bill is fiscal insanity. Yet the democrats and deficit-hawk hypocrites will vote for it anyway. The "compromise" is so convoluted that I am wondering if Ben Bernanke himself persuaded the president to go for it. Bernanke certainly has been pushing for stimulus. He defended his actions in a creampuff interview on 60 Minutes that was really nothing more than an infomercial begging for more stimulus. Well Bernanke got what he wanted, and if it blows up he will get to blame Obama and Congress for it. Please see Lies, Half-Truths, and 100% Hubris on 60 Minutes; Deficit-Chicken Republicans; Middle-Class Crucifixion; Ron Paul Needs Your Support for details on the infomercial. After everything blows sky high we just may hear a statement like this. Dr. Mr. Speaker In Dr. Mr. Speaker I asked people to email incoming House Speaker John Boehner about the fiscal insanity of that $900 Billion compromise. Here is a portion of what I sent the speaker. Dear Mr. SpeakerOvercoming Inertia Inertia is difficult to overcome because those who want free handouts are the ones who donate money and pack every school board and town hall meeting in the country. They can and will get out the vote. Corrupt politicians willing to pander to unions and special interest groups go along. The warmongers, homebuilders, banks and every special interest group in the country bribes candidates via campaign contributions. The compromise vote goes something like this: "You toss a sweetener to the homebuilders and I will toss a sweetener to your defense contractor." With deals like that, the campaign contributions keep pouring in. Perhaps we should elect lobbyists instead of Congressional representatives. At least we would know where people stood and why. Certainly we cannot expect any Congressmen to read the bills, not even the speaker. In regards to healthcare legislation, Nancy Pelosi actually said "We have to pass the bill so you can find out what is in it" Click on that link to see a nice video of that proud moment. Sadly, the only people who know what's in these bills are the lobbyists. They know because they are the ones who actually write the key provisions. Three Classes of People When it comes to making changes, there are three classes of people. 1. Those who try to make needed changes 2. Those who don't 3. Those who recognize a need for change but sit back and mock others for trying Sadly there are too many people in groups two and three. Yet fight on we must. No Constituency for Honesty Unfortunately, it's a very uphill battle because there is no constituency for honesty. Someone who wants to cut military spending and take on the unions gets no money from anyone. Simply put, we have campaign contribution system that rewards graft, fraud, incompetence, political pandering, greed, and absurd compromises. Economically speaking, we get the worst politicians that money can buy. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
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