As whispers became shrill rumors of a Greek default last week, it became clear that the Federal Reserve was going to “inject liquidity” into the French banks that could not find overnight funds on the open market. Markets are disciplined. The Federal Reserve magic money machine is not. When the market decided the three French banks were over-extended in Greece, and loaning them money was | Read More »
It is unclear how much clearer things need to get before the elite get it: the strategic correlation of forces is steadily and regularly eroding the position of the West vis-à-vis the Muslim world. Ironically, Greece, the cradle of early democracy, may or may not, be the proximate cause of the collapse of the leading Western currency: the Euro. For those Americans who don’t get | Read More »
This just in, Estonia — the former Soviet communist captive state — has a better financial rating than the United States. Here is the U.S. strategic financial situation — a complete joke. While the public tries to sort out if CBO was right, and the great budget deal only cut $350 million, or the $38 billion widely reported by the mainstream media, Rome is burning. | Read More »
The One’s steadfast refusal to cut spending and his tax raising proposals are not the only thing that is driving the spiraling in of the U.S. economy and the value of the U.S. dollar. No, The One is the trillion dollar President, the spender-in-Chief, and anyone who believes for a second he cares about the deficit or about the Fed’s printing of money or that | Read More »
Regular readers of this blog know that one of my major concerns has been an impending bailout of the blue states and cities by the Federal Reserve. This concern was largely eliminated when Federal Reserve Chairman Ben Bernanke put a pad-lock on the Federal Reserve cash machine when he announced the Fed would not bail out cities and states who cannot get their fiscal house | Read More »
The following prediction analysis of possible future events was made in the Boston Phoenix by Steven Stark. Here is number one, on his five item list: 1. HOW DO OBAMA AND CONGRESS DEAL WITH THE STATE AND MUNICIPAL DEFAULT CRISIS? Another cliché: this is the ticking time bomb of our politics and economy. In the coming year, hundreds of cities and maybe even some states | Read More »
This is the story of another government guaranteed, debt-bomb waiting to explode with investor buying bonds from cities teetering on bankruptcy, because they believe the Fed will bail them out. Another Fed bailout — as in the Federal Reserve — will simply be another money printing exercise to bailout incompetent, corrupt city governments who are borrowing to fuel super-salaries of union workers in cities that | Read More »
When Obama defended the Fed’s money printing on his recent trip abroad, The One used the same language he used to describe his own efforts — to get the economy moving again. If that isn’t a clear signal that The One and Paul Krugman got their stimulus wish without having to go through Congress, I do not know what is. The GOP is beginning to | Read More »
What is the difference between no investor or country will buy U.S. Treasury bonds, and the following sentence from the Wall Street Journal: “In essence, the Fed now will print money to buy as much as $900 billion in U.S. government bonds through June—an amount roughly equal to the government’s total projected borrowing needs over that period.” I do understand the difference, but I want | Read More »
James Pethokoukis of Reuters is at it again, subversion-via-blog. So in the little sit down with the President, the Chinese made clear they did not believe a word of the President’s promises about ObamaCare not adding to the deficit. The Chinese asked uncomfortable questions about the cost of ObamaCare: Guess what? It turns out the Chinese are kind of curious about how President Barack Obama’s | Read More »
While the cognoscenti of the Western financial world is attempting to spin the recent fall in the dollar as a stylish financial mystery play with a journalist based in the Middle East as its star, the Whodunit spin is a red herring: the facts are that the dollar is weak, and getting weaker. The world is awash in dollars. There is a massive oversupply. We | Read More »
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