The figure won’t be valid for long. The national debt twitter, courtesy of the Peter G. Peterson Foundation, tracks the never-static stratospheric debt sinking the country. The figure changes every few hours.
The ship of fools sails on.
Category Archives: Debt
‘The United Socialist States of America’
Barack Obama, Debt, Economy, Fascism, Federal Reserve Bank, Regulation
Obama’s “new regulatory regime” has Peter Schiff anticipating that the U.S.S.A. may soon “appoint a Politburo, move into dilapidated housing blocks, and parade [its] missiles in the streets.”
“The underlying problem is that the excessive risk taking which brought about the crisis was not market-driven, but a direct consequence of government interference with risk-inhibiting market forces. Rather than learning from its mistakes and allowing market forces to once again control risks and efficiently allocate resources, the government is merely repeating its mistakes on a grander scale – thereby sowing the seeds for an even greater crisis in the future.
As is typical of government attempts to control economic outcomes, Obama’s plans focuses on the symptoms of the disease and not the cause. The American financial system imploded for two reasons: cheap money and moral hazard – both of which were supplied by the government. Under the proposed new regulatory structures, these toxic ingredients will be combined in ever-increasing quantities.
The proposals most notably involve extra regulatory oversight of financial entities that the government deems ‘too big to fail.’ This implies that it is desirable to have such entities in the first place, and that the government will continue to back those large organizations that fall under its protection.”
A voice in the wilderness…
'The United Socialist States of America'
Barack Obama, Debt, Fascism, Federal Reserve Bank, Regulation
Obama’s “new regulatory regime” has Peter Schiff anticipating that the U.S.S.A. may soon “appoint a Politburo, move into dilapidated housing blocks, and parade [its] missiles in the streets.”
“The underlying problem is that the excessive risk taking which brought about the crisis was not market-driven, but a direct consequence of government interference with risk-inhibiting market forces. Rather than learning from its mistakes and allowing market forces to once again control risks and efficiently allocate resources, the government is merely repeating its mistakes on a grander scale – thereby sowing the seeds for an even greater crisis in the future.
As is typical of government attempts to control economic outcomes, Obama’s plans focuses on the symptoms of the disease and not the cause. The American financial system imploded for two reasons: cheap money and moral hazard – both of which were supplied by the government. Under the proposed new regulatory structures, these toxic ingredients will be combined in ever-increasing quantities.
The proposals most notably involve extra regulatory oversight of financial entities that the government deems ‘too big to fail.’ This implies that it is desirable to have such entities in the first place, and that the government will continue to back those large organizations that fall under its protection.”
A voice in the wilderness…
Geithner Gives Chinese Students The Giggles
There is something quaint and good-natured about laughing at the ludicrous Geithner’s claims of American solvency, instead of getting angry or being rude, as less-inhibited Westerners might, when faced with a bald-faced lie. The Chinese response is definitely culturally distinct.
Were American students capable of grasping how bad the U.S. Treasury Secretary’s policies are, and how dire the debt and the deficits, they might grow testy. Alas, no point dealing in hypotheticals. The chances are slim that an audience of students on a typical American campus would allow facts, the laws of economics and reason to get in the way of Obamadualtion and general Keynesian credulity (a proxy for economic illiteracy).
It happened in China (via Reuters):
“China is the biggest foreign owner of U.S. Treasury bonds. U.S. data shows that it held $768 billion in Treasuries as of March, but some analysts believe China’s total U.S. dollar-denominated investments could be twice as high.
‘Chinese assets are very safe,’ Geithner said in response to a question after a speech at Peking University, where he studied Chinese as a student in the 1980s.
His answer drew loud laughter from his student audience, reflecting scepticism in China about the wisdom of a developing country accumulating a vast stockpile of foreign reserves instead of spending the money to raise living standards at home.”