Archive for the ‘spending’ Category

Obama Budget: 42% See Help; 43% See Hurt

March 27, 2009

Voters are evenly divided over whether President Obama’s proposed $3.6 trillion budget will help or hurt the economy.

The latest Rasmussen Reports national telephone survey found that 42% believe it will help the economy while 43% say it will hurt.

The data, combined with two earlier surveys tracking the topic, shows that opinion on both sides of the debate are fairly entrenched. The data also indicates that proposals for health care reform are likely to be the central front in the budgetary debate.

Read the rest from Rasmussen:
http://www.rasmussenreports.com/pub
lic_content/business/general_business
/voters_divided_as_to_whether_obam
a_budget_will_help_or_hurt_economy

Roubini Says Stocks Will Drop as Banks Go ‘Belly Up’

March 26, 2009

The rise in the stock market shows promise, but we at Peace and Freedom are looking for businesses to re-hire workers and for consumer spending to rebound before we hire a band and celebrate economic recovery….

*******************

From Bloomberg

U.S. stocks will fall and the government will nationalize more banks as the economy contracts through the end of 2009, said Nouriel Roubini, the New York University professor who predicted last year’s economic crisis.

“The stock market is a bit ahead of the real macroeconomic and financial news,” Roubini, a professor at NYU’s Stern School of Business and the chairman of consulting firm Roubini Global Economics, said in an interview with Bloomberg Television in London today. “We’ll have some major banks going belly up that will need to be taken over.”

The global equity rebound in March that sent the Standard & Poor’s 500 Index to its best monthly advance in 17 years is a “bear-market rally” and U.S. Treasury yields will “remain relatively low” as investors flock to the safest assets, Roubini said. Treasury Secretary Timothy Geithner’s new plan to remove toxic debt from financial companies won’t be enough for insolvent banks, he said.

Roubini’s outlook contrasts with predictions this week from Templeton Asset Management Ltd.’s Mark Mobius and Traxis Partners LLC’s Barton Biggs, who said that equities are poised to rally as government efforts to revive the economy and banking system begin to work. Investors are “way too optimistic” about the prospects for a recovery in the economy and earnings, Roubini said.

Read the rest:
http://www.bloomberg.com/apps/news?pid=
20601087&sid=aCvWs8KIIsUo&refer=worldwide

The Great Give Away of Taxpayer Money By Bigger and Bigger Government

March 26, 2009

An eager 20 year old student asked me yesterday, “Uncle, who really pays for all this spending?”

“Well, your children and grandchildren, Dear,  I thought you knew,” I said.

This needs time to think in and sink in — since she hasn’t yet started a family….

This is a developing essay that is not yet complete….

So we’ve been wondering about all this Obama spending: what it is and what it means.

The president basically spent $1 billion per day in his first 50 days.

I wonder why we need paid “volunteers” so badly that we now have to pay for them?
 Federal Government Paying “Volunteers” To Teach Liberal Values

“You cannot carry on for ever squeezing the productive bit of the economy in order to fund an unprecedented engorgement of the unproductive bit. You cannot spend your way out of recession or borrow your way out of debt.”  This rings true for Americans even though it wan an admonishment to Britain’s Prime Minister Gordon Brown.
Warning to American Politicians, Via MEP Daniel Hannan to Gordon Brow

I wonder if the crisis in Mexico will mean a huge migration of Mexicans into the states…I mean way huger than ALREADY…and what will that cost?
 Mexico: “under sustained assault”; Could “collapse” — U.S. Military

“Worst-case scenario, Mexico becomes the Western hemisphere’s equivalent of Somalia, with mass violence, mass chaos,” said Ted Galen Carpenter, vice president for defense and foreign policy at the Cato Institute, a Washington-based think tank. “That would clearly require a military response from the United States.”
http://www.foxnews.com/story/0
,2933,491964,00.html

I wonder why the Pentagon can no longer refer to the “war on terror” and is already trying to figure out how to cut many billions from its budget; while Russia and China rearm?
China boosts military, cyberwarfare capabilities
.
 Gates readies big cuts in weapons
.
 Russia Pressing “Reset,” Medvedev Orders Military To Re-Arm
.
I wonder why ACORN, which gets federal taxpayers money, is hiring protesters with that money to go to the homes of AIG executives?
Did ACORN Organize Protests At Homes of AIG Execs?
.
ACORN Protesters At Homes of AIG Execs Similar To Lawlessness For UK Bank Exec?

When we make it much more simple to unionize through programs like card check, how will that impact the economy?  Well, FedEx might scrap plans to buy new jets from Boeing and the stimulus might hire many fewer workers….
Stimulus: Way Fewer Jobs Than You Thought

Just Wednesday FedEx said it might back off on billions of dollars of aircraft sales planned to go to Boeing.  The reason?  Card check.  FedEx is worried that fast unionization of its work force will dramatically change its bottom line.

Who benefits from all this U.S. debt?  Who buys our debt and who gets our interest payment?  The answer in one word is China.  The U.S. bailed out Freddie and Fannie with Taxperer money and now China is even buying the houses we once owned…
Chinese find opportunity in U.S. real-estate slump

I wonder how we will pay for “unknown unknowns” like 9-11 and Katrina?  Well, we’ll print more money…..
 Obama, Economy: So Much Uncertainty Spins Off More…. Uncertainty

There are still issues as yet untackled by Obama like immigration.  How will we deal with the vast numbers of illegals ou there?
What do I tell my legal immigrant family and friends?
.
Obama Believers Thought They’d Hear More On Immigration By Now

Immigration embers could turn into political fire for Obama

La Raza has a new best friend at Justice

I wonder how much our government will grow, what the government will cost us all and what freedoms we’ll lose in this Obama shake up?

There is a mind-set here that Americans can have eveything they want and now and without consequences.

Didn’t that thinking spark this “economic downturn”?

Read Michelle Malkin:
http://michellemalkin.com/2009/03/2
6/now-they-tell-us-ap-admits-that-po
rkulus-numbers-are-bs/

http://newworldliberty.wordpress.c
om/2009/03/25/maxine-waters-
proves-obama-is-a-fraud/

Related:
Obama Talks About “Making Hard choices,” But Budget Is “Have It All Now”

Warning to American Politicians, Via MEP Daniel Hannan to Gordon Brown

March 26, 2009

I don’t normally delve into the politics of the European Parliament, but this video of Conservative MEP Daniel Hannan stripping the bark off British Prime Minister Gordon Brown is worth noting. (“The devalued prime minister of a devalued government.”) Many American politicians might be hearing the same criticisms next year if the U.S. economy is still depressed even as the national debt soars. Here is a transcript:

Prime Minister, I see you’ve already mastered the essential craft of the European politician, namely the ability to say one thing in this chamber and a very different thing to your home electorate. You’ve spoken here about free trade, and amen to that. Who would have guessed, listening to you just now, that you were the author of the phrase ‘British jobs for British workers’ and that you have subsidised, where you have not nationalised outright, swathes of our economy, including the car industry and many of the banks? Perhaps you would have more moral authority in this house if your actions matched your words? Perhaps you would have more legitimacy in the councils of the world if the United Kingdom were not going into this recession in the worst condition of any G20 country?

The truth, Prime Minister, is that you have run out of our money. The country as a whole is now in negative equity. Every British child is born owing around £20,000. Servicing the interest on that debt is going to cost more than educating the child. Now, once again today you try to spread the blame around; you spoke about an international recession, international crisis. Well, it is true that we are all sailing together into the squalls. But not every vessel in the convoy is in the same dilapidated condition. Other ships used the good years to caulk their hulls and clear their rigging; in other words – to pay off debt. But you used the good years to raise borrowing yet further. As a consequence, under your captaincy, our hull is pressed deep into the water line under the accumulated weight of your debt We are now running a deficit that touches 10% of GDP, an almost unbelievable figure. More than Pakistan, more than Hungary; countries where the IMF have already been called in. Now, it’s not that you’re not apologising; like everyone else I have long accepted that you’re pathologically incapable of accepting responsibility for these things. It’s that you’re carrying on, wilfully worsening our situation, wantonly spending what little we have left. Last year – in the last twelve months – a hundred thousand private sector jobs have been lost and yet you created thirty thousand public sector jobs.

Prime Minister, you cannot carry on for ever squeezing the productive bit of the economy in order to fund an unprecedented engorgement of the unproductive bit. You cannot spend your way out of recession or borrow your way out of debt. And when you repeat, in that wooden and perfunctory way, that our situation is better than others, that we’re ‘well-placed to weather the storm’, I have to tell you that you sound like a Brezhnev-era apparatchik giving the party line. You know, and we know, and you know that we know that it’s nonsense! Everyone knows that Britain is worse off than any other country as we go into these hard times. The IMF has said so; the European Commission has said so; the markets have said so – which is why our currency has devalued by thirty percent. And soon the voters too will get their chance to say so. They can see what the markets have already seen: that you are the devalued Prime Minister of a devalued government.

Video:
Here is how Gordon Brown faced the heat at the EU:
http://www.youtube.com/wa
tch?v=94lW6Y4tBXs

British Prime Minister Gordon Brown reacts,  as he listens to ... 
British Prime Minister Gordon Brown reacts, as he listens to the debates, Tuesday March 24, 2009 at the European Parliament, in Strasbourg, eastern France. Brown called for global standards of financial regulation and insists every continent must pour enough funds into their economies to beat the crisis.(AP Photo/Christian Lutz)

Federal Government Paying “Volunteers” To Teach Liberal Values

March 25, 2009

In the House, North Carolina Republican Virginia Foxx complained last week that legislation to expand the number of national service slots from 75,000 to 250,000 would be a waste of money.

“I think it’s important that we encourage volunteers,” she said. “But this is a paid job. This is a government-authorized charity.”

NPR

And she questioned the program’s effectiveness, especially at a cost of about $6 billion over five years.

In fact, AmeriCorps has been criticized for mismanagement in the past, although agency officials say they’ve fixed the problems. One year it enrolled 20,000 more volunteers than it had the money to pay for.

Read it all:
http://www.npr.org/templates/story/sto
ry.php?storyId=102280114&ft=1&f=1003

See Michelle Malkin:
http://michellemalkin.com/2009/03/2
5/to-give-and-to-serve-the-6-billion-n
ational-service-boondoggle/

***********************

Related:
Obama’s Americorps: Hitler Youth Or Putin’s Nashi

Forget ACORN, Obama’s Americorps Has “strong odor of creepy authoritarianism”

In a time of economic crisis, it seems almost unbelievable that we are considering the president’s current budget: which is packed with spending, debt and irresponsibility.

The Associate Press writes, “Obama’s budget has ignited a firestorm on Capitol Hill, with Republicans assailing it for record spending and budget deficits. Democrats are generally supportive, though some have sticker shock over the deficit figures.”

Read it all:
http://www.foxnews.com/politics/first100da
ys/2009/03/25/democrats-knife-obamas
-budget/

Obama: Press Conference Hints at Class Warfare

Euopean Union President: Obama “will undermine the stability of the global financial market” 

President Obama failed to sell his budget plans to the American people

Mark Levin Reminds Americans that Values Count

March 24, 2009

Republicans need to review the past in order to effectively move into the future.

And Republicans need to regain their core values fast in order to effectively work through the current Obama Administration’s march toward socialism.

The Republican past is not John McCain, much as he is loved and admired.

And though many of us think about Ronald Reagan, we must grasp the values and not the personalities we need now — a personality will rise in his or her own time.

Mark Levin’s book  “Liberty and Tyranny” is an effort to get us all to think again about the values we need.

Judd Gregg, who nearly became Barack Obama’s Commerce Secretary, seems to have regained his good thinking and is now speaking out about the Obama budget.

“It just seems inappropriate and irresponsible to spend so much that we send along a huge debt to our children and grandchildren,” he said today on the Fox News Channel.

Good Republican thinking.

“This is a massive spending document that increases government and taxes dramatically.”

So is that a good thing?

Republican cannot allow Rahm Emanuel, Robert Gibbs and the others to define them.  Democrats fear a united conservative movement and have worked hard to make the discussion about Limbaugh or Steele.

The discussion is not about who.  The discussion is about the values and how best to achieve them.

Related:
Republicans: If You Can’t Agree On Core Values Now, Commit Harakiri

 Republicans Must Hang Together, or One By One

Michelle:
http://michellemalkin.com/2009/03/2
4/congrats-mark-levin/

 Liberated “Almost Commerce Sec” Gregg: Obama’s Harshest Budget, Debt Critic

 U.S. Seeks Expanded Power to Seize Firms

 Because of Obama, Our enemies sense weakness

Senators Ready To Abandon Missile Defense:
http://senatus.wordpress.com/2009/03/24/lev
in-hopes-missile-defense-compromises-lead-t
o-russian-assistance-on-iran/

GOP sees signs of life in Northeast

Liberated “Almost Commerce Sec” Gregg: Obama’s Harshest Budget, Debt Critic

March 24, 2009

Now that he’s not joining them, Judd Gregg has made no bones about criticizing the Obama administration.

The New Hampshire senator and formerly almost-commerce-secretary has become one of President Obama’s sharpest and most prominent congressional critics of late, saying this weekend on CNN that “this country will go bankrupt” under Obama’s budget and denouncing the administration’s consideration of rolling big energy and health care policies into the un-filibuster-able budget, telling the Washington Post that that’s the “Chicago approach to governing” (akin to “running over the minority, putting them in cement and throwing them in the Chicago River”).

Gregg cuts a unique path: He stands by Treasury Secretary Tim Geithner and told CNN’s John King that while he has problems with the budget and stimulus package, when it comes to the administration’s efforts to stabilize the financial system, “I think they’re taking the right course of action.”

In an interview yesterday, Gregg praised Obama on a personal level as a “pretty effective guy” and a “great personality” and gave preliminary kudos to Geithner’s new bailout plan (though he wanted to read the fine print), saying that public guarantees plus private dollars could equal the right formula to get toxic assets off of banks’ books.

Meanwhile, Gregg has also emerged as one of the sharper critics of the effort to impose a supertax on AIG bonuses, calling that “an abuse of the tax laws” (though he says that the bonuses themselves are “despicable” and that more should have been done to rein in American International Group earlier).

The tax-AIG-at-90-percent effort, Gregg said yesterday, “sets a horrific precedent for our nation. This is something Venezuela might do.” He adds: “As a practical matter, the opportunity to discipline this was flubbed by us. The Treasury Department had every opportunity to limit these bonuses,” including making the $30 billion in additional funds released this month contingent on curbing bonuses.

Read the rest:
http://www.concordmonitor.com/apps/
pbcs.dll/article?AID=/20090324/OPIN
ION/903240310

Sen. Judd Gregg, R-N.H. speaks during a news conference on Capitol ...

Gregg said President Obama proposes to amass more debt than all other U.S. presidents — combined.  Here Sen. Judd Gregg, R-N.H. speaks during a news conference on Capitol Hill in Washington, Monday, March 23, 2009.(AP Photo/Susan Walsh)

Obama’s Economy Now: Once You Break It, You Own It

March 23, 2009

Now that President Obama has taken the “Harry Truman pledge” about the economy by saying “The buck stops with me,” it also seems appropriate for him to take the “Colin Powell pledge” by acknowledging of himself, “Once you break it, you are going to own it.”

By Jon Kraushar
Fox News

The first quote is a paraphrase of the sign on former President Truman’s desk reading, “The buck stops here” and the second is what former Secretary of State Powell says he told President Bush in 2002 about the danger of invading Iraq. Powell told The Atlantic magazine:

…what I did say was…once you break it, you are going to own it, and we’re going to be responsible for 26 million people standing there looking at us…And it’s going to take all the oxygen out of the political environment …

The real problem with Obama and the sentiments expressed in the two quotes above is that while the president would pay a political price by failing to turn around the economy, the buck actually stops with taxpayers and if the economy becomes even more broken we, the taxpayers, will own the consequences.

The question is, will Obama clean up this mess or add to it? Our fortunes—in every sense of the word—are riding on the outcome of that gamble.

The total tab for taxpayers is already mind-boggling. So far, it includes the $410-billion omnibus spending bill (with more than 8,500 earmarks) that Obama signed on March 11. Then there’s the $787-billion economic stimulus bill which passed with no Republican support in the House and only three Republican votes in the Senate. On Friday, the Congressional Budget Office predicted that the president’s proposed budget would produce a $9.3-trillion deficit during the period from 2010-19. That’s $2.3 trillion worse than the White House predicted in its budget and, if accurate, would make the deficit unsustainable, according to the president’s own budget director!

Further raising the stakes is a new program announced on Monday by Treasury Secretary Timothy Geithner that would partner the Federal Reserve, the Federal Deposit Insurance Corporation and the Treasury Department with private investors to buy from banks at a discount up to $1 trillion in deeply distressed (aka “toxic”) assets—mostly from soured mortgage loans—with the goal of finally properly pricing the assets and then, hopefully, selling them at a profit in the future. Hopefully.

According to The Wall Street Journal this past weekend:

“To encourage investors to buy those assets, the U.S. government will offer lucrative subsidies and shoulder much of the risk.”

That risk and other unknowns in all of this are staggering. Not since the Great Depression have we bet “the house”— “the house” being the economy—to this extent.

Both the danger and the opportunity of the situation take on additional meaning when you look into the origin of Truman’s phrase. “The buck stops here” derives from the expression “pass the buck.” In frontier days, during poker games, a knife with a buckhorn handle was placed in front of the person meant to deal next and if they didn’t want to, they “passed the buck.”

We’ve let Obama do the dealing and the stack of chips he’s gambling with is huge. — After all it’s our money and our nest eggs! The president could bankrupt our country (as New Hampshire Republican Senator Judd Gregg warned recently) or his plans could help it rebound, as Christina Romer, head of the White House Council of Economic Advisors has predicted.

Read the rest:
http://foxforum.blogs.foxnews.com/20
09/03/23/kraushar_obama_economy/

Is Obama Serious About Economic Recovery?

March 23, 2009

We were told that Geithner was the best of the best.  Even though he didn’t correctly calculate his taxes, we had to have him.

A few weeks ago he was told by the markets and the congress that his ideas on the taxic asset sell-off were crap.

Now he’s back with a crap re-write of the same failed homework.

He worked for the AIG bonuses: then couldn’t recall much.  And that exploded into a national spectacle: not a confidence fueling event in a time that the president is urging confidence.

And the other White House economic advisors?  Where are they?

I mean except for Larry Summers who is Geithner’s mentor and can’t be counted.  Where are the the 16-members of the Presidential Economic Recovery Advisory Board, headed by former Federal Reserve Chairman Paul Volcker?

Well, Politico says today they haven’t met once.

I thought we were in a crisis?

Last night on “60 Minutes” the president seemed to laugh at the economic crisis; MY economic crisis and your economic crisis.

Is he serious about resolving the economic crisis as soon as possible or more interested in using all this to set out a totally new agenda for a new America?

One wonders…

“Perhaps new economic leadership will emerge during this crisis, under our gifted, charismatic president. It seems likely to consist of people who have the kind of experience, judgment and authority Morgan had — possibly a new “trio” made up of the current Fed chairman, Ben Bernanke; Paul Volcker; and Warren Buffett.”

That comment comes from Jean Strouse in Today’s New York Times.

Note that Geithner and Summers are missing from this trio of reconomic recovery….

Strouse in Today’s New York Times:
Does Obama Need New Economic Leadership?

Related:
Obama’s Budget Comes As Government’s Ability To Manage Economy in Doubt

 Resistance grows to Obama’s bigger government


ACORN activists at the homes of AIG executives on Saturday

***************

from Politico
By

Six weeks after President Barack Obama appointed a blue-ribbon panel to help him dig America out of its economic crisis, the board has yet to hold an official public meeting.

The White House initially said that the 16-member Presidential Economic Recovery Advisory Board, headed by former Federal Reserve Chairman Paul Volcker, would meet “every few weeks.” Last month, a spokesperson told POLITICO the group would meet monthly. And more recently, the White House said the high-powered board, set up to address what Obama has called the worst economic emergency since the Great Depression, would gather only about four times a year, with the next session due in “late spring.”

But comments from board members and Obama himself indicate that some members of the panel are meeting, in smaller gatherings that have not been announced or opened to the public. And that raises the question of whether an administration that prides itself on openness and transparency is in fact finding it more convenient to conduct public business in private.

Read the rest:
http://www.politico.com/news/
stories/0309/20343.html

Michelle Malkin:
http://michellemalkin.com/2009/03/23/t
he-david-copperfield-school-of-econom
ic-recovery-pt-ii/

Resistance grows to Obama’s bigger government

March 22, 2009

“We’re in the midst of a huge political battle, which is being obscured behind a financial crisis,” said Bruce Kogut, professor of ethics and corporate governance at Columbia University. “If the financial crisis wasn’t here we’d be having this battle anyway.”

“The question I think we need to figure out as a country is what is the proper role of government?” said David Moss, professor of economic history at Harvard Business School.

By Tabassum Zakaria
Reuters

Regulation of the financial system to contain risk has not been adequate or effective, he said. “So on the financial front we want to try to find a Goldilocks scenario of not too much and not too little.”

Obama administration officials have had to fend off accusations they were too easy on the financial industry, after the insurance giant AIG paid out millions of dollars in bonuses after accepting billions of dollars in taxpayer funds.

CHARGES OF SOCIALISM

Airing charges of socialism, opponents have sought to turn public opinion against Obama’s big spending policies, including a record $3.55 trillion budget proposed for next year and a $787 billion economic stimulus package.

In the United States calling someone a socialist is often an insult, striking at the heart of American individualism and raising the fear of government fingers in everyone’s business.

The word’s powerful negative connotation prompted Obama to call The New York Times back after an interview to belatedly respond to a question on whether he was a socialist.

“It was hard for me to believe that you were entirely serious about that socialist question,” Obama said, defending his policies as consistent with free-market principles.

“The fact that we’ve had to take these extraordinary measures and intervene is not an indication of my ideological preference, but an indication of the degree to which lax regulation and extravagant risk-taking has precipitated a crisis,” he said.

Read it all:
http://www.reuters.com/article/n
ewsOne/idUSTRE52L0J820090322