All The News That Fits

Archive for February, 2010

Where Are We Headed Financially?

Posted by Nancy on February 25, 2010

Ben Bernanke is comfortably ensconced in his office, debating the future of our country and his legacy.  What has he done so far, and where does he go from here?

First, a quick primer on Quantitative Easing, the policy Mr. Bernanke has been following since March 2009.  This video was made in late 2008, as use of QE was being discussed.

So the economy has been stimulated for almost a year by an infusion of money, estimated by some at $10 trillion,  created out of thin air.  Yet it remains a terrible economy.  Not only that, but if left in the marketplace that $10 trillion will lead to inflation the likes of which we have never seen.  Some estimate that continued monetary expansion at the current rate could lead to 60% inflation or higher.  Possibly much higher.

And the problem will only increase over time.

40% of existing debt matures in the next year. That means $2.8 trillion of debt has to be refinanced. The Treasury must sell on average $90 billion of debt a week! In five weeks, we need to sell $450 billion. That is equal to the largest full-year deficit in history, at least until Obama’s first year.

There are no plans to curb spending or cut deficits. President Obama just increased the debt ceiling by $1.9 trillion. To outsiders, we appear like a banana republic with ICBMs. Does anyone seriously believe that funding based on “the kindness of strangers” is workable much longer?  Monty Pelerin

Mr. Bernanke has two options.  One is to continue Quantitative Easing, the other is to stop printing money by the end of March, which is what he promised to do when sekeing re-appointment to his seat.  Neither will be good for him, for the Obama administration, or for us.

If Bernanke ends QE, he will stop both the economy and the federal government dead in their tracks.

Without QE, the government will be unable to honor its obligations. Non-payment of Social Security or Medicare or federal payroll or welfare checks or retirement checks, or military payroll, etc., etc., would show up almost immediately. That would jeopardize foreign (and domestic) purchases of additional federal debt, exacerbating the problem.
Bernanke’s second option enables the government to continue operating irresponsibly until market forces eventually stop the profligate behavior. Market discipline would likely be imposed in the form of a collapse of the dollar or raging inflation (or both).
Under either scenario, the Obama presidency is destroyed.  Ibid.
And so are we.

Posted in Economy | Leave a Comment »

The Face of God

Posted by necessarygrace on February 11, 2010

This is definitely one worth sending to your friends, posting on your Facebook page … and oh how I’d like to think that our President would watch it and take the message to heart.

Posted in Obama | Tagged: , | Leave a Comment »

Healthcare We Can All Believe In – Or Not

Posted by Nancy on February 11, 2010

Looks like we’ll get Democratic Healthcare reform after all, like it or not.

Nancy Pelosi’s top healthcare aide, Wendell Primus, is quoted in Congress Daily as saying the administration has already settled on a strategy to get the Senate version of the bill through without any opportunity for the Republicans to filibuster it.  It involves reconciliation, and Primus refers to it as “a trick.”

The House will approve the Senate bill, Obama will sign it, then the House and Senate will both pass amendments to the bill that will supercede the Senate version once it is passed and Obama signs it.

And you thought we had a representative form of government in the United States.

Conservative columnist Connie Hair noted Primus’ remarks and called the reconciliation strategy and the White House health care summit two big “rope-a-dope” plays that are “just another in a long charade of dog and pony shows.”

Hair says “the end game has already been decided behind closed doors by Democrats who have no intention of letting this opportunity for cradle to grave control over the American people slip away when it’s so close.”

So the important question here is, if the Democrats have already worked out what they are going to do and how, why is Obama calling for a healthcare summit with Republicans?

Posted in Healthcare, Obama, That's outrageous | 1 Comment »