The
Government just proposed allowing itself to
borrow a fresh $1.9 trillion to cover its
bills. The increase would lift the national
debt to $14.3 trillion.
Where does our money go? To buy
votes, basically. Rather than
drastically reduce spending, our
politicians are shoveling out tons of money
to car companies (to get the union vote),
food stamp recipients (to get the poor
vote), to the military-industrial complex
(to get the war monger’s vote), and to
busted homeowners (to sop up the
rest).
This is how America goes
bankrupt…
Senate
Democrats on Wednesday proposed allowing
the federal government to borrow an
additional $1.9 trillion to pay its
bills, a record increase that would
permit the national debt to reach $14.3
trillion.
The
unpopular legislation is needed to allow
the federal government to issue bonds to
fund programs and prevent a first-time
default on obligations. It promises to be
a challenging debate for
Democrats, who, as the party in
power, hold the responsibility for
passing the legislation.
It's
hardly the debate Democrats want or need
in the wake of Sen.-elect Scott Brown's
victory in Massachusetts. Arguing over
the debt limit provides a forum for
Republicans to blame Democrats for rising
deficits and spiraling debt, even
though responsibility for the
government's financial straits can be
shared by both political
parties.
The
measure came to the floor under rules
requiring 60 votes to pass. That's an
unprecedented step that could mean that
every Democrat, no matter how politically
endangered, may have to vote for it next
week before Brown takes office and
Democrats lose their 60-vote
majority.
Democratic leaders
are also worried that
Sen. Evan Bayh, D-Ind.,
who opposed the debt limit increase
approved last month, will vote against
the measure.
The
record increase in the so-called debt
limit is required because the
budget deficit has spiraled out of
control in the wake of a recession that
cut tax revenues, the
Wall Street
bailout, and increased spending by
the Democratic-controlled Congress. Last
year's deficit hit a phenomenal $1.4
trillion, and the current year's deficit
promises to be as high or higher.
Congress
has never failed to increase the
borrowing limit.
(That is
the problem idiot Government, no matter
whom is in power, you keep spending like
hell with the interest payments getting
higher as the debt
increases)
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complete story click
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The top
biggest banks and brokers are on pace to
award $145 Billion for 2009, up 18% from
the year before, according to a WSJ
study.
This is based on two factors: Zero % money
from the Fed, and a massive accounting —
and legal — fraud.
How hard is it for any finance firm to make
risk free money when they can borrow form
the Federal Reserve at zero, and lend that
same cash to the Treasury (by buying bonds)
at 3%?
(This is why we
suspect they are not loaning consumers
any money)
I
suspect this was essentially the
Bernanke/Paulson plan (now
Bernanke/Geithner) all along — to
s-l-o-w-l-y recapitalize the banks via
the Japanese model. They selected
the easier but less effective Japan
option versus than the Swedish model,
which forces insolvent institutions to
reorganize, write down bad loans,
recapitalize the banking sector (which
allows banks to start lending again), but
punished bondholders and wipes out
shareholders.
That is how
capitalism is supposed to work. Instead,
the socialist bankers saved the banks
(and their own asses), rather than the
banking system.
What
may thwart the massive Fed giveaway is
the self-interested institutions, who are
not lending, not writing down debt, and
capturing the lion share of this wealth
via bonuses. Perhaps they realize the
true state of their balance sheets, and
are making hay while the sun is
shining.
On top
of this, the recapitalization plan only
works if these insolvent institutions get
to hide their massive losses from their
owners — namely, the shareholders
(and in some instances, the
taxpayers).
Thanks
to the Congressionally mandated
FASB rule changes back in March of
2009, Mark-to-Market was
replaced with
Mark-to-Make-Believe. We do not
if these banks are actually profitable
(GS), whether they are barely solvent
(Chase/JPM), somewhat insolvent (BofA) or
totally bankrupt (Citi). Given the lack
of transparent accounting, we simply do
not, and cannot, know.
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comment on it, please click
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Freedom
and Liberty are being assaulted by
Governments all over the world in the so
called war on Terrorism - and no where is
this more evident then in the UK with more
big brother closed circuit TV cameras
surveying the populace 24/7 days a week
then anywhere else in the world.
The
1984 Olympics are in full swing led by
the UK Government. Once again, the UK is
demonstrating its prowess in the race to
become the nation most like that
envisioned in native son George Orwell's
book 1984.
It has done so by
adopting
regulations that require UK
telecommunications and Internet companies
to record and store for a year every
phone call, email, and Internet
click. And, of course, provide
access to said data to governmental
entities - in this case some 653
different government
bodies.
No court order is required in
order for your local bureaucrats to paw
through your data; a nod from “a
senior police officer or the equivalent
of a deputy head of department at a local
authority” will do.
Ministers had
originally wanted to store the
information on a massive Government-run
database, but chose not to because of
privacy concerns.
However
the Government announced yesterday it was
pressing ahead with privately-held "Big
Brother" databases which
opposition leaders said amount to
"state-spying" and a form of "covert
surveillance" on the
public.
It is
doing so despite its own consultation
showing there is little public support
for the plans.
The
Home Office admitted that only a third of
respondents to its six-month consultation
on the issue supported its proposals,
with 50 per cent fearing that the scheme
lacked sufficient safeguards to protect
the highly personal data from
abuse.
The new
law will increase the amount of personal
data which can be accessed by officials
through the controversial Regulation of
Investigatory Powers Act (RIPA), which is
supposed to be used for combatting
terrorism.
Although most
private firms already hold details of
every customer's private calls and emails
for their own business purposes, most
only do so on an ad hoc basis and only
for a period of several months.
The new
rules, known as the Intercept
Modernisation Programme, will not only
force communication companies to keep
their records for longer, but to expand
the type of data they keep to include
details of every website their customers
visit – effectively registering every
click online.
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