Monthly Archives: June 2012

Roubini’s Odd Reasoning

Debt, Economy, EU, Europe, Federal Reserve Bank, Media, Political Economy, Russia

“The cable commentariat is a cog in the sprawling American comitatus. They all feed off Rome.” In this context, it’s hard not to notice just how hard the commentariat is working to create the illusion that America’s economic situation is better than Europe’s, and is the fault of Europe.

Not if you ask Vladimir Putin, who seems to have a reasonable grasp of matters monetary. In July of 2011, “Putin raged over the second plague of quantitative easing, QE2, unleashed by the Federal Reserve Bank, lambasting the Unites States for acting ‘as if they were ‘hooligans’ because they ‘flood’ the entire world with dollars … They start the money printing presses and throw dollars throughout the world in order to solve their immediate responsibilities. They say monopolies are bad but only if they are foreign – their monopolies are perfect. So they use their monopoly to print money until the whole world is flooded.’

This once-avowed communist congratulated his fellow Russians for not being like the Americans: ‘Good for us that we do not print reserve money.'”

In “One Nation Under Inflation,” I observed that “America’s debt-to-GDP ratio is larger than the European Union’s.”

I was wrong.

The US debt “is greater than the combined debt of the entire Eurozone and the U.K.”

At 15.6 trillion dollars of government debt, everyone should know by now that, from the fact that the US keeps loaning billions for bailouts to Christine Lagarde of the International Monetary Fund—it doesn’t follow that we are richer. Or that we have this money. We aren’t and we don’t.

Alas, according to the “logic” of Keynesian macroeconomics, solvency is not a precondition for prosperity.

Adding to the confusion is economist Nouriel Roubini. When asked by RT whether he thought “the US has the risk of seeing the same situation as in the Eurozone, Roubini said something curious:

For now I don’t think there will be a fiscal crisis in the US. Their deficit and debt are large and rising in part because the US can print money to finance its deficit, something the Europeans and their banks are unwilling to do, in part because the US dollar is still a reserve currency, so the foreign demand of China and the rest of emerging markets is financing the large US fiscal and current account deficits. Now, no country should be complacent. Over time, if the US were not to deal with their fiscal problems, if it’s not going to deal with its still low competitiveness, eventually we could see a fiscal train wreck, a sudden stop of capital. And then financial turmoil could happen in the US. Whatever is the result of the election next year, whoever is going to be a president, starting a plan to build a fiscal discipline, a fiscal consolidation, is part of what the US has to do in order to avoid the risk of something bad happening. This can happen later in the US than in other countries, but it can happen eventually.

Is he suggesting that US counterfeiting operations and reserve-currency status are magic amulets against economic realities?

Surely running the printing presses and gulling other governments to buy our worthless bonds serves only to mask the inevitable reality?

Next Time, Reporter Neil Munro Should Throw a Shoe

Bush, Etiquette, IMMIGRATION, Iraq, Pop-Culture, Republicans, The State

When in 2009, a brave Baghdadi journalist lobbed a loafer at a similar object (President Genghis Bush), I commended him for his bravery against “a bully.”

Less boldly—and even gingerly—Larry Elder has written “In Defense of the Rose Garden ‘Heckler.'”

Why?

I wasn’t aware that anyone needed defending for speaking truth to power, in America. I was wrong. We Americans may not have the venerated tradition of a hardworking royal family, but we accord an inordinate and undeserving respect to our parasitical political royalty.

Writes Elder:

Last week, a “right-wing activist” (according to Michael Eric Dyson, guest-hosting for Ed Schultz on MSNBC) interrupted President Barack Obama as he explained his executive order that bars deportation for at least 800,000 illegal aliens who came to America – “brought to this country by their parents” – before the age of 16.
As Obama stood in the White House Rose Garden and outlined the plan, Neil Munro, a reporter with a conservative website, shouted, “Why do you favor foreigners over American workers?” Based on his colleagues’ reaction, one would have thought he’d thrown a shoe at the president. Reporters and pundits called him unprofessional, rude and even racist for interrupting Obama.

Speaking of shoe tossing; When that stellar fellow threw his “Bye-Bye Bush shoes,” the Istanbul-based Baydan Shoe Company was inundated with orders for the black leather loafers. From “Take this, Mr. President, For Ramos and Compean”:

In what will go down as the high-water mark of his career, journalist Muntadhar al-Zeidi lobbed a loafer at Bush for invading his country, during the president’s last official trip to that country. Iraqis, tens of thousands of whom were killed and millions displaced, have every reason to throw boots, baklava, and even bombs at Bush. But they’ve come along way. Shoe tossing is much better than bomb throwing. … in times of terrorism and economic downturn, the brave journalist who booted a violent bully, and the entrepreneurial shoe merchant who built a brand around this barmy comedy—these [were] good news stories.

It’s sad to say, but if Neil Munro tried to launch a line of loafers thus, in the USA today, he’d been shot on the spot. Were he protesting a Republican, Larry Elder would have probably approved of the murder.

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On a personal note, the pressure of this effort over months has had some unexpected consequences. (I heard it said that in the US there are two types of engineers: overworked or unemployed. A tough economy would indeed force increases in productivity: fewer and fewer workers are doing more and more of work.) The upshot: My husband has come down with pneumonia. I will be taking some time to look after him (and hoping to remain uninfected).

THE WND COLUMN, “Return to Reason,” will resume next week. RT will be featuring a golden oldie. Make sure you Click to Like, Share and Tweet it.

Big Ben, One Twisted Brother

Debt, Economy, Federal Reserve Bank, Government, Inflation

So as to get rid of the public debt, our government, via the Fed (which is an arm of the state), is debauching the dollar and all private savings.

In the name of “economic recovery,” wouldn’t you know it, Ben Bernanke is set to “swap some securities for others.” Or, to belabor the “maturity-extension program” baffle-gab,

“sell Treasury securities with remaining maturities of about three years or less, and purchase securities with six years to 30 years remaining.”

In the course of expanding what is known as “Operation Twist,” The man who directs the Federal Reserve wrecking ball claimed he “stands ready to take further action to put unemployed Americans back to work.” [Bloomberg.]

The last bit (my bold) is no joke, and assumes that inflating the money supply and endless liquidity alleviate joblessness. It’s the exact opposite.

What does this mean in the grand scheme of “ultra-loose monetary policy”? You can take this to the bank: Ben will continue to afflict us with ever easier money and lower interest rates, quadruple the money supply and hastened the collapse of the dollar.

As Peter Schiff prognosticated, “The reason I knew QE3 was coming [was] because I knew QE2 wouldn’t work and that’s why QE4 is gonna follow QE3—it never works, it just makes the economy sicker, it’s the reason we’re so screwed up.”

$7.77 Trillion: That’s the amount of money the central bank, chaired by Ben S. Bernanke, “parceled out” during “the bailout to America’s “Big Six,” ostensibly, to rescue the financial system. This according to “Fed documents obtained under the Freedom of Information Act” by “Bloomberg LP, the parent of Bloomberg News.”

Inflating America’s fascistic banking system has cost “more than half the value of everything produced in the U.S. that year.”

It “lasted from August 2007 through April 2010.” Officially.

But we all know Ben’s bacchanalia continues.

UPDATE II: SURFACE By Microsoft (Leaves The Idiot Pad In the Dust)

America, Business, Human Accomplishment, Technology

At 15:14 into the unveiling of the Microsoft Surface tablet, Windows chief Steven Sinofsky says that Surface “provides the best WiFi reception of any tablet today.” The Surface’s dual Wi-Fi (“wireless networking technology that uses radio waves to provide wireless high-speed Internet and network connections”) antennae are the part My Contact in the bowels of the beast nailed.

Well done, genius.

Congratulations to all for bringing to market this “well-designed, very cool” product, over which industry experts are already gushing: It goes “toe to toe” with Apple’s iPad, says one, and even bests it (as “it runs as a full computer,” and sports a physical keyboard), says another.

Although I’ve been kept in the dark until now, I’m looking forward to receiving one of these as soon as possible. What piques my interest in that the Surface is a transportable PC, a facility the idiot Pad never offered. (I don’t need mindless entertainment; I want the ability to transport my work wherever I go, without the burdens imposed by a cumbersome laptop.)

UPDATE I (June 20): This is the stuff that makes one patriotic, right guys? American-coordinated ingenuity (with wise division of labor, naturally). Damn straight. (Wives are always kept in the dark … but, all I can say is that they deserve a medal. What a marathon effort The Surface has been.)

And, as someone who has never been tempted by the Idiot Pad: Yes, my instincts, on seeing what this thing accomplishes were very much, “This is a good fit for me.” And it has a keyboard and the easy ability to use a mouse with it, as opposed to the frenetic finger f-ck the traditional laptop requires.

UPDATE II (June 21): In this context, and on a personal note, the pressure of the effort above over months has had some unexpected consequences. (I heard it said that in the US there are two types of engineers: overworked or unemployed. A tough economy would indeed force increases in productivity: fewer and fewer workers are doing more and more of work.) The upshot: My husband has come down with pneumonia. I will be taking some time to look after him (and hoping to remain uninfected).

THE WND COLUMN will resume next week. RT will be featuring a golden oldie. Make sure you Click to Like, Share and Tweet it.