Treasury Secretary “Hank” Paulson was the trailblazer with his proposal for TARP in September 2008. He went to the Congress with a list of demands—unlimited powers to hand unlimited amounts of taxpayer money to whomever—and threatened that the whole world would collapse if his demands weren’t met. It worked. So Greek prime ministers imitated him. And now Christine Lagarde, managing director at the IMF, tried it too.
Democracy
When The White House Touts Falling Wages
by Wolf Richter • • Comments Off on When The White House Touts Falling Wages
150 factory workers in China threatened to jump off the roof of an iPhone factory unless they received a raise. Similar stories are accumulating. To make ends meet, desperate workers sometimes take drastic measures. These anecdotes underscore a major trend in China: skyrocketing cost of labor. But in the US, it’s the opposite—and now part of the official White House strategy.
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….
Mainstream Media Discover Ron Paul
by Wolf Richter • • Comments Off on Mainstream Media Discover Ron Paul
The Wall Street Journal, NPR, The New York Times, and other mainstream media have engaged in an obvious and silly boycott of presidential candidate Ron Paul. Report after report about the Republican primary excluded him, though occasionally they’d mention his name—to be fair and balanced. But if you haven’t read The New York Times recently, you missed something BIG.
Political Realities Threaten To Split The Eurozone
by Wolf Richter • • Comments Off on Political Realities Threaten To Split The Eurozone
Sarkozy will be the only French president since World War II with two recessions under his belt, if current forecasts are correct. Recessions are rare in France: between the war and the financial crisis, there were two. Against this backdrop, Sarkozy faces a tough reelection campaign. And front runner François Hollande has vowed to oppose the German dictate on how to save the Eurozone. So it might all unravel.
Indefinite Detentions of Americans Without Trial
by Wolf Richter • • Comments Off on Indefinite Detentions of Americans Without Trial
A Cheneyesque banana-republic law passed another hurdle in the Senate on Tuesday. It would mandate that the US military detain terrorism suspects, including US citizens, even on US soil, and hold them without trial, possibly for life, in military facilities. It sounds like a dark part of a futuristic novel. But it’s actually part of the National Defense Authorization Act.
The Consequences When Three Elements Collided
by Wolf Richter • • Comments Off on The Consequences When Three Elements Collided
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.
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.