Congress appears unable to pass the 2011 federal budget for the first time since the 1974 Budget Act. House Majority Leader Steny Hoyer (D-MD) essentially admitted the budget would put the nation on a path to hemorrhage trillions more than it has already bled out. Of course, there are only two ways to improve the nation’s broken budget: cutting back bloated spending and/or bumping up taxes… especially on the middle class… most likely meaning any individual earning less than $200,000 per year.
[Read more...]Solving Debt and Moral Hazard With More Debt and Bailouts
June 4, 2010 By Leave a Comment
The Feds response has been adolescent in the sense that it has permitted major damage by allowing the credit boom to happen. Right under its nose, the broad money supply (M3) doubled in the last eight years, from $7 trillion to $14 trillion, but it is trying to fool the market into thinking this statistic is irrelevant because it was vigilant and never allowed inflation to surface.
[Read more...]Taibbis View of Congress Audit the Fed Debate
May 29, 2010 By Leave a Comment
Matt Taibbis latest piece in Rolling Stone is about how Wall Street’s “flooded the Capitol with more than 2,000 paid lobbyists” to fight the Restoring American Financial Stability Act — which even veteran Congress members seem to recognize as a new level for the “intensity of the blitz.”
[Read more...]Congress to put the Kibosh on US Portion of IMFs Greece Bailout
May 18, 2010 By Leave a Comment
International Business Editor Ambrose Evans-Pritchard has changed his stance on Greece. Previously, hes supported the Greek bailout and wanted to avoid a “sovereign Lehman.” Today, he sees the “moral hazard rescue” for what it is, and now chooses to “flagellate” himself and “wear a dunces hat.”
[Read more...]The Devil May Care Approach to Financial Regulation
April 17, 2010 By Leave a Comment
Unable to find a correct approach to financial regulation… because for regulation there rarely is… Congress is looking to regulate simply for the sake of doing something.
Unfortunately, combining additional, newregulation with even less strategic thinking is unlikely to diffuse the next financial meltdown.
[Read more...]Ron Paul: Not Long Before the Govt is Borrowing us Further Into Oblivion
March 10, 2010 By Leave a Comment
Dr. Ron Paul (R-TX) isn’t one to let his opinion go unheard… especially as Congress continues approving massive amounts of debt-financed spending.
From his recent Texas Straight Talk:
“Last week, the House approved another increase in the national debt ceiling. This means the government can borrow $1.9 trillion more to stay afloat and avoid default. It has been little more than a year since the last debt limit increase, and graphs showing the debt limit over time show a steep, almost vertical trend.
[Read more...]Fun: The Congressional Reality TV Show
February 26, 2010 By Leave a Comment
It’s pretty clear to see that Congress members like to ham it up for the camera, and put on a show while making meddling decisions about how to run the country and rescue the economy.
It makes it that much more gratifying to watch The Onion point out the extent of the absurdity with a reality TV show idea. Especially when Rep Cummings says what we know many Congress members must often be thinking… “You know how I am, a big diva, a blowhard, the representative everyone loves to hate…”
[Read more...]Chinas Patience is Wearing Thin Over US Arms Sale to Taiwan
February 25, 2010 By Leave a Comment
China has apparently noticed the tiny $6.4 billion military equipment deal the US recently inked with Taiwan. Unsurprisingly, its not happy about it. The Pentagon informed Congress about the transaction knowing full well it would upset the Chinese government and could spur retaliation.
From The Washington Post:
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4 out of 5 Americans Aren’t Buying Financial Reform
Bloomberg just completed a poll this week which finds four out of five Americans have little to no confidence in new financial reform legislation likely to be approved by Congress. The bill includes additional Wall Street oversight, a new consumer watchdog housed within the Fed (where it’s bound to be as secretive as other Fed activities), a new procedure for winding down “too big to fail” institutions in the process of collapsing, and other such programs.
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