Newly appointed French Minister of Economy, Finance, and Trade, Pierre Moscovici surprised the world: “A country that indebts itself is a country that impoverishes itself,” he said and proclaimed that the government would cut the deficit because “public debt is an enemy for the country.” Powerful words, reasonable and refreshing. What a difference from what we’re getting dished up in the America.
Debtor Nation
Ron Paul Slugs At The Fed One More Time
by Wolf Richter • • Comments Off on Ron Paul Slugs At The Fed One More Time
Before retiring from Congress, Rep. Ron Paul, Chairman of the House Financial Services Subcommittee on Domestic Monetary Policy and Technology, slugs at the Fed one more time: Tuesday, his committee weighs six bills to reform or abolish the Fed which “continues to reward Wall Street banks while destroying the dollar’s purchasing power and driving up the cost of living for average Americans,” he said.
Next: Bankruptcy for a whole Generation
by Wolf Richter • • Comments Off on Next: Bankruptcy for a whole Generation
Thousands of students from all over California snarled traffic during their march on the Capitol in Sacramento. Hundreds of them then flooded the Rotunda of the Capitol, a raucous affair. Eventually, the Highway Patrol cleared them out, and 60 were thrown in the hoosegow for trespassing and resisting arrest. Their problem: tuition increases—in a system that has become dysfunctional.
The Corporate Tax-Dodge Code
by Wolf Richter • • Comments Off on The Corporate Tax-Dodge Code
The Most Disparaged Profession
by Wolf Richter • • Comments Off on The Most Disparaged Profession
Congress is the ideal American institution: it spends far more than it takes in and borrows the difference. We love that. To heck with the future. It means free money, services, wars, and other goodies. At least some of us get to profit from it. And then we blow it or invest it, and we lose it or make money on it. It all adds up to that glorious GDP. It’s the American dream. And yet….
Cutting The Deficit: They Won’t Because They Don’t Have To
by Wolf Richter • • Comments Off on Cutting The Deficit: They Won’t Because They Don’t Have To
Fixing The Postal Service Debacle
by Wolf Richter • • Comments Off on Fixing The Postal Service Debacle
The Postal Service announced a staggering loss for fiscal 2011: $5.1 billion. Plus $5.5 billion for retiree health benefits that it should have paid in 2011 but deferred to fiscal 2012. Now it’s due. But there’s no money. Default? Nope. Congress will find a way to stick it to the taxpayer. But amazingly if run right, the Postal Service could be a decent business.
When The Truth About The US Economy Comes From China
by Wolf Richter • • Comments Off on When The Truth About The US Economy Comes From China
In his “enough’s-enough” speech in Hawaii, Obama castigated China for its currency peg, a perennial complaint. Congress too regularly hyperventilates about the yuan being “artificially undervalued.” If China just allowed the yuan to trade freely, they say, it would solve the U.S. economic quagmire. Cheap political posturing—and full of bitter ironies.
Bailing out Zombies, Again
by Wolf Richter • • Comments Off on Bailing out Zombies, Again
The government forks over another $13.8 billion to Fannie Mae and Freddie Mac to cover their losses for the last quarter. The regular drumbeat of bailout billions handed to these zombies barely enters the nation’s consciousness anymore, but it adds up: $184.8 billion since 2008. And there is no end in sight. Supercommittee, where art thou?
Ruinous Symbiosis Between Congress And The Fed
by Wolf Richter • • Comments Off on Ruinous Symbiosis Between Congress And The Fed
The members of the congressional panel on deficit reduction are struggling to come up with something that will—I mean, let’s be realistic—get them reelected and fill their campaign funds. Even if they come up with a plan that will reduce the gargantuan budget deficits, Congress won’t follow through. Because it doesn’t have to, thanks to the Fed.