Recession 2 “Summer of Recovery” 0

“We are going to take on the barbarism of war, the decadence of racism, and the scourge of poverty, that the Ku Klux — I meant to say the Tea Party,” The Rev. Walter Fauntroy told a news conference today at the National Press Club. “You all forgive me, but I — you have to use them interchangeably.”

But don’t worry, if you disagree with a Liberal you’re the hyperbolic racist! 🙂

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Political Cartoons by Michael Ramirez

The government is about to confirm what many people have felt for some time: The economy barely has a pulse.

The Commerce Department on Friday will revise its estimate for economic growth in the April-to-June period and Wall Street economists forecast it will be cut almost in half, to a 1.4 percent annual rate from 2.4 percent.

That’s a sharp slowdown from the first quarter, when the economy grew at a 3.7 percent annual rate, and economists say it’s a taste of the weakness to come. The current quarter isn’t expected to be much better, with many economists forecasting growth of only 1.7 percent.

Such slow growth won’t feel much like an economic recovery and won’t lead to much hiring. The unemployment rate, now at 9.5 percent, could even rise by the end of the year.

“The economy is going to limp along for the next few months,” said Gus Faucher, an economist at Moody’s Analytics. There’s even a one in three chance it could slip back into recession, he said.

The report confirms the economy has lost significant momentum in recent months. Most analysts expect the nation’s GDP will continue to grow at a similarly weak pace in the current July-to-September quarter and for the rest of this year.

The economy has grown for four straight quarters, but that growth has averaged only 2.9 percent, a weak pace after such a steep recession. The economy needs to expand at about 3 percent just to keep the unemployment rate, currently 9.5 percent, from rising.

According to data released earlier this week, home prices fell as much as five percent across the country in the month of July, and existing home sales fell 27%.

The worst in 15 years.

But if you listen to the liberals and their pundits, it slow but it’s all good. You just to have more hope. Give it more time. Don’t be so impatient.

So what if GDP growth has gone for 5% in the last quarter of 2009 to 1.6% now it’s still improving! 🙂

And you wouldn’t to hand the keys back over to Bush now would you!

After all, Bush was Republican and all Republicans are Bush. (a gold star to anyone who can spot the logical fallacy in that statement 🙂 ) But isn’t that what the Democrats ARE saying…

Cue Sisyphus! 🙂

Will the economy actually enter a double dip, with G.D.P. shrinking? Who cares? If unemployment rises for the rest of this year, which seems likely, it won’t matter whether the G.D.P. numbers are slightly positive or slightly negative.

All of this is obvious. Yet policy makers are in denial. Why are people who know better sugar-coating economic reality? The answer, I’m sorry to say, is that it’s all about evading responsibility.(Paul Krugman)

After all, it’s Bush’s Fault! and you wouldn’t want <cue evil organ music> Republicans! they’ll just wreck the car again like they did before! 🙂

After all, Bush was Republican and all Republicans are Bush.

And as Mr Krugman also says, showing his liberal roots,”The administration has less freedom of action, since it can’t get legislation past the Republican blockade.”

The Democrats currently have an overwhelming majority in the House and 59/100 seats in the Senate and The Presidency.

Yet, it’s a “republican blockade”.

The problem is that the Democrats can’t get all the Democrats to vote for all of this crap so they have to blame the minority party for it!

It sure as hell can’t possibly be their fault! 🙂

So, if November happens as predicted and the Democrats are the minority, it will be the tyranny of the majority then right? 🙂 They will be the victims yet again, as they are now in the majority. 🙂

Perpetual Victimization!

But the Democrats will focus again on the 1 tree in the forest that isn’t on fire and say that’s you’re hope and change, just be patient, socialism wasn’t built in a day! 🙂

On Thursday, Standard & Poor’s said action is needed soon if the U.S. is to keep the much-coveted AAA bond rating that lets the government borrow in global markets at the lowest rates possible.

S&P’s warning came just days after Morgan Stanley asserted that the U.S., along with a number of other developed nations, is likely to default on some debt. Such defaults are “inevitable,” it said, given the growing number of retirees in developed nations who will have to be taken care of by a shrinking pool of workers.

The sovereign debt crisis “is not over,” said the investment bank’s Arnaud Mares, and that includes in the U.S.

What worries Wall Street is a public debt-to-GDP ratio of around 53%. That’s high enough as it is, but it’s about to go a lot higher. By 2020, recent data suggest, the ratio will top 100% — a red line that virtually all economists agree is dangerous.

In raw numbers, we owed roughly $7.5 trillion at the start of this year. By 2020 that explodes to $23.5 trillion, according to an analysis of Congressional Budget Office data by economist Brian Riedl.

What do these numbers mean? To begin with, we spend $187 billion a year, or 1.3% of GDP, to pay our debts now. Just 10 years from now, that will surge to $1.1 trillion, or 4.8% of estimated GDP. Fiscally speaking, we’ll be gasping for air.

Debt can be a good thing, but in big doses it’s poison. If, as some fear, the U.S. should simply say it can’t pay its debts and default — or do a de facto default by printing money to retire our debt — the consequences would be dire.

No nation would want our bonds in their portfolios. To entice them to buy, we’d have to offer a much higher risk premium — that is, higher interest rates.

That means our debt service could go even higher, squeezing out even more of our economy’s spending.

The dollar would implode, and prices for foreign goods — which now make up 15% of our economy — would soar. Private investment would shrink and, along with it, private-sector GDP

Americans’ standard of living, once the envy of the world, would recede into the pack of mediocre, government-run nations.

It doesn’t have to be this way. All this is due to unrestrained spending. The federal government now spends about $29,000 per household. That will rise to $38,000 by 2020. If you think “the rich” will, or can, pay for it all, think again.

Unless we begin to control spending, we can kiss our American lifestyles goodbye. It’s that simple.

Sadly, the White House is unwilling to see reality. Which may explain why, as our debts mount to ruinous heights, Vice President Joe Biden — President Obama’s point man on the recovery — can burble, “This is a chance to do something big, man!”

Yeah, man, something big — like wreck a country.

Warnings about America’s impending financial car wreck are being sounded, loud and clear. The only question is whether those driving the car will slam on the brakes before it’s too late.(IBD)

Got the car out of the ditch and drove it straight off a cliff and into a bottomless pit!

Way to go Barack & Co!

Yours is the Superior Intellect! 🙂

Getting in Touch with your Inner Banana

I will explain the title in due course.  So bear with me. there’s a bit of a set up needed.

Timothy “Tax Cheat” Geithner:  US Treasury Secretary Timothy Geithner has told the BBC that the world “cannot depend as much on the US as it did in the past”.

He said that other major economies would have to grow more for the global economy to prosper.

We are now declare The United States Not to be a Super Power and a World Leader, so piss off!

Yes, that’s the demoralizing sound of the White House spreading more malaise.

Welcome to Carter Malaise II: The Intentional Sequel.

In other words, don’t expect the engine that has been the driver for the world economy for over a century to keep up the pace.

This fits with President Obama’s conviction that the U.S. is no more extraordinary than any other country.

We’re nothing special. We are just another country of many. Nothing to see here, move along…

Everyone is equal and no one is better than anyone else.

“I believe we must each start by setting out plans for getting our national finances under control,” New UK Prime Minister David Cameron.

Australian Prime Minister Kevin Rudd was tossed out this week BY HIS OWN LABOR PARTY.

He was replaced by his deputy Julia Gillard, who became the story of the day by becoming Australia’s first woman prime minister.

It was a bad fall for the man dubbed Australia’s Barack Obama.

Like the latter, the youthful Rudd initiated costly health care, home weatherization, entitlement, and global warming pork barrel projects. In the process, he blew out the Australian budget.

When the time came to pay the bill, he effectively committed political suicide by calling for a 40% tax on Aussie mining companies.

Those firms form the backbone of Australia’s dynamic economy, accounting for half of its exports. As Rudd imagined that it was he who kept Australia out of financial crisis, the reality was it was private firms like these that created the value and jobs for Australians.

When news of Rudd’s tax hikes suggested a bid to expropriate companies’ profits, the stock market took a beating.

To pay for his own bloated government programs, Rudd claimed — as his union supporters did — that he only wanted companies to pay their “fair share.” Unions themselves added to the fantasy by claiming these taxes would create jobs. Rudd echoed that, absurdly claiming the tax would be good for the economy.

“It is important to pay emphasis on the independent modeling of Treasury who’s put all the factors together and projects this industry will grow by 6.5% over five to 10 years,” Rudd told incredulous mining executives from BHP Billiton, Rio Tinto and Fortescue last May as stocks fell. “As a result of (this 40% tax) we will see a better and more dynamic mining industry in the future.” (IBD)

Beginning to sound familiar??

The Full on Socialist German State:

German leader Angela Merkel believes that the massive spending President Obama is advocating is not right for her country to undertake. Merkel, sounding and parroting the familiar refrain of Conservative Republicans, is a proponent, at this juncture, of curtailing spending and sees merit in the German engaging in more savings. President Obama on the hand wants the major economies like that of Germany (ranked number 4) to emulate the profligate spending him and the U.S. lawmakers – at least the Democrats – have contributed to the world money supply. President Obama also wants Germany to curtail its forays into exports and focus it fiscal policies on consumer spending so as to spur economic growth.

Chancellor Merkel may not be operating on her own accord concerning the fiscal policies that she is currently championing like any astute politician, Merkel may be listening to her people’s voice on this matter. Much of the German people did not support the bailout (110 billion Euros) provided for Greece and (750 billion for the European safety net).

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This posture by the German people of disagreeing on their version of bailouts mirrors the angst felt by the Tea Partiers in America.

So the Socialists have had enough of full-on socialism, and what does Obama want?

Full on Socialism.

You have to wonder why European Socialists are worried about debt and spending and Obama is not.

Add in Timothy “We are no longer a Super Power” Geithner’s comments and you start to see where I’m going with this.

I hope. 🙂

German Finance Minister Wolfgang Schäuble has added his voice to the growing discussion about the United States’ recession spending spree.  In a response to President Obama’s call for further international recession spending, Schäuble stated “governments should not become addicted to borrowing as a quick fix to stimulate demand. Deficit spending cannot become a permanent state of affairs.”

As if there were any doubt about the United States’ spending addiction, Heritage budget expert Brian Riedl explains, “the annual federal budget deficit is projected to reach 8.3 percent of gross domestic product (GDP) by 2020—more than three times the historical average.”

This means that if the US wanted to balance the budget by 2020, one-third of all spending would need to be eliminated or taxes would need to increase by 50 percent.

The Congressional Budget Office has just released its assessment of the administration’s budget outlook. The numbers are shocking. Under the president’s policies the federal deficit will exceed $700bn (€520bn, £467bn) in every year over the next decade. The sea of red ink will more than double the national debt to more than $20,000bn. The upshot is that in 2020, the deficit is projected to be $1,200bn, of which more than $900bn is borrowing to pay interest on previous debt. It is a sorry state of affairs.

So Obama and The Democrats want Financial “reform”.

They want to punish Wall Street!  Those evil, corrupt Capitalist Bastards!

But just like the Health Care “reform” that was more about stealth tactics to eventually kill off the private industry and have you dependent on the government, this too is not about Finances and Wall Street and just another polarized Alinsky tactic.

The upshot: no downgrade in our status as a AAA  Credit nation until interest equals 14 per cent of revenues. (and when it is downgraded the cost of the 13+ Trillion dollar debt goes up!)

Let’s party ‘til 2014 because in the Obama administration budget, D-Day (Downgrade Day) is 2015 when the magic number reaches 14.8 per cent. Moreover, the plan is not merely to flirt with modest deterioration in creditworthiness. In 2020, the ratio reaches 20.1 per cent. The US is on track for a junk-bond bonanza.

Just after 2014 when all the Health Care taxes come into full force and by then private health plans will likely be near extinction.

Coincidence?

I think not.

It’s just another takeover, but in the 2000+ plus throw the frog in cold water and then boil him slowly to death kind of way these Democrats seem to prefer.

Hell, they don’t even READ their own damn bills!

And it’s brought to you by Barney Frank and the retiring Chris Dodd, the guys who created the Mortgage mess!!

So the fox is going to save the chickens in the chicken coop!

Some Highlights

The Power to Unwind:

The FDIC would have the authority to liquidate failing firms while the Treasury Department fronts the money to do so. There would also be a repayment plan so that taxpayers are guaranteed to get the money back (and where does the government get the money??? You’re looking at his computer!).

So if the government “deems” you failing, you get taken over and sold off.

Gee, that can’t be abused at all can it! 😦
Financial Stability Oversight Council:

The council would monitor systemic risk across the entire financial system and make recommendations to the Federal Reserve to alleviate that risk. The ten-member council would include the heads of the federal financial agencies.

Corporate America’s Sith Overload. What do you bet they will be political appointees?

Just like the Oil Spill Investigation commission that has a bunch of left wing environmentalists and not one Engineer or Oil Businessperson!

They would never use any of those Chicago tactics on them, now would they… 😦

The government also gets to decide what is a “financial” firm. Does GM, which makes loans, fall into that category? How about Wal-Mart, which issues its own credit cards?

In effect, this lets the government seize and dismantle the assets of almost any company — and then force others to pay for it.
Fannie/Freddie:

Republicans biggest beef with the whole bill is that it does nothing to address the problems, and sustainability, of mortgage giants Fannie Mae and Freddie Mac.

For instance: Fannie Mae and Freddie Mac, which were in arguably at the heart of the financial crisis, and which have already cost U.S. taxpayers $146 billion (with hundreds of billions more on the way), aren’t addressed in this bill at all.

The major reason for the collapse in the first place gets ignored!

Wonder Why?

Oh, that’s right, it’s government owned, heavily in debt, and guaranteed to be bailed out! (by you of course!)

Just Like Medicare, Medicaid and Social Security!

No problems there! 🙂

No Resolution Fund:

The House wanted to create a $150 billion fund to pay for any future bailouts. The fund would be paid for by the banks. This provision was gutted. Conferees agreed that this could only be created after a massive collapse. This is the fund that Republicans successfully painted as a permanent bailout fund when Democrats in the Senate tried to include a similar, but only $50 billion, fund.

And the Republicans were right. Can you say, slush fund!

Any bank that runs into trouble can still walk up to Uncle Sam’s borrowing window and, hand outstretched, ask for money. And if the bank is politically connected or very large, it will get it.

The bill also creates a new agency inside the Federal Reserve that will have extensive power over consumer lenders. Hold the applause, because likely new limits on checking account fees and interest on credit cards will mean less access to credit, not more.

So you have less credit available, you have new regulations and new taxes, an Oversight committe that can swoop in and shut you down, and Health care cost are going to skyrocket under ObamaCare.

Sounds like a great business climate to me. Sign me up. 🙂

US Treasury Secretary Timothy Geithner has told the BBC that the world “cannot depend as much on the US as it did in the past”.

Because the Government is going to intentionally, “for your protection” get in the way of business even more now than before.

WASHINGTON (AP) — The economic recovery won’t be catching fire any time soon.

Businesses and governments are likely to reduce spending in the second half of the year. Consumers, who drive most economic growth, aren’t expected to take up the slack.

The Commerce Department said Friday that the economy grew at an annual rate of 2.7 percent in the first quarter, offering its third and final estimate for the period. It was slower than initially thought because consumers spent less and imports rose faster that previously calculated.

Economists anticipate even slower growth ahead as companies bring their stockpiles more in line with sales. Factory output has climbed this year. But it was driven more by businesses replenishing their warehouses after the recession and less by consumer demand.

“The economy is growing, but still at a disappointingly slow pace,” said Zach Pandl, an economist at Nomura Securities. Take away businesses restocking their inventories and “you still have a lukewarm recovery,” he said.

Other factors could hold back growth. Federal government stimulus spending is expected to fade. The European debt crisis could slow U.S. exports and world trade. And state and local governments are likely to rein in spending and raise taxes as they struggle to close budget gaps.

“This is still the weakest and longest economic recovery in U.S. postwar history,” said Paul Dales, U.S. economist with Capital Economics.

High unemployment and tight credit have kept consumers from ramping up their spending as in past recoveries. The housing industry has played a big role after previous recessions. But this time it is slumping and subtracting from economic growth.

Most economists expect the unemployment rate, currently at 9.7 percent, to remain above 9 percent through the end of the year.

The economy has grown for three consecutive quarters after shrinking for four straight during the recession — the longest contraction since World War II.

And Stimulus III is on the way. After all, the previous ones were a roaring success!! So let’s do it again! and again! and again!!

Another part of the bill, and one that’s gotten little attention, makes changes to the amount of capital banks must keep to back up their loans. Banks eventually will be forced to raise more capital, or to reduce their lending. It also gives the government oversight over the $600 trillion derivatives market, without telling us what the rules will be. That, no doubt, will be left to bureaucrats. (IBD)

And they do a bang up job of it, always.

Add in that the Government has taken over Banks, Car Companies,Insurance Companies, and now wants to micromanage the financial sector.

So they want to decide who lives and who dies (Health Care)

Who is employed, by who whom and how that company operates. And if they don’t like it, they will swoop in “for your own protection” and save you from the evil capitalist exploiters.

Unions, especially Government Unions get special perks, deals and exemptions.

They are actively trying to destroy the Oil Industry (the moratorium) so they can take that over because “it’s too big and too important fail”. But if we help it fail, that’s ok.

Medicare and Medicaid  and Social Security are bankrupt. Fannie and Freddie are a bottomless pit.

The Congress wants an Internet “kill switch” for cyber-terrorists (terrorists being Right-wingers according to Homeland Security Secretary Napalitano last year)

Taxes are going up in 2011 by large amounts.

New taxes from ObamaCare start in 2011.

Unemployment may permanently be around 10% some economist are saying if everything remains as is.

50% of the people don’t even pay taxes.

The only sector of jobs that’s growing is the Public, government sector.

They want “Comprehensive Immigration Reform” aka Amnesty. And will not settle for less.

They are going to sue Arizona for wanting to protect itself.

That’s the Government’s job! 🙂

And if you don’t like the fact that they aren’t and don’t care to, tough bovine fecal matter!

We are the Power. Not You!

So they want to control your Energy, you Job, your Boss, your security, your Medical Care, Your Health, your retirement, and your how you make money.

So what does this all mean?

It means we have a President who willfully and with ideological malice wants to downgrade America to not only  ‘just another country’ but a banana 2nd or third tier one to boot. Nothing special.

What our country needs today is an inspirational leader, one who gets what makes the U.S. unique and who’ll boldly lead the nation out of its slide toward despair as he invites the world to climb with us.

What we have is a Banana Republic Dictator Wannabe.

He wants to throw the American People (the frog) in the cold water and boil them to death slowly.

To take over your life completely.

He want’s to “know whose ass to kick”.

Yours.

So he’s in touch with his Inner Banana (Dictator that is!). 🙂