Obamaville Shanty Towns: Tent Cities Sprouting Up Across America

Monday, December 14, 2009 \PM\.\Mon\.

As the recession continue to take its toll on our fellow Americans, rendering more and more of them homeless, tent cities have begun sprouting up across this great country.  It would not be fair to blame President Obama for the predicament that our nation is in, but President Obama has done nothing to help the situation.

President Obama’s ‘stimulus package’ only rewarded government contractors with more spending.  It is also correct to point out that former President George W. Bush’s ‘stimulus package’ did nothing more than President Obama’s spending bill.

Small businesses and the private sector in general got almost zero benefit for either porkulus spending bills.  Though this recession is typical of a business cycle, there are some things that can be done to alleviate the stress the economy is undergoing and maybe expedite the expiration of the current recession.  President Obama has done neither.

So it is fitting and fair to label the tent cities that are sprouting across America as Obamavilles.

(Note: In case the above YouTube video is taken down by the Blueshirts, you can see the entire story and video here.)

Read the rest of this entry »


It’s A Depression, Thus Sayeth The Veep

Wednesday, October 21, 2009 \AM\.\Wed\.

During these dismal economic days, we can always rely upon the  comic stylings of Joe Biden to raise our morale, just as the American public during Depression I looked to the Three Stooges for comic relief.  I assume Jolly Joe in the above video was thinking of  the old Reagan line from Reagan’s 1980 campaign for President:  “A Recession is when your neighbor loses his job.  A Depression is when you lose your job.  A Recovery is when Jimmy Carter loses his!”  Needless to say, the brighter lights in the Administration were reaching for extra strength pain relief as they saw the human gaffe machine use the “D” word, especially since they have been attempting to convince a sceptical public that the recession  is ending.

What makes this especially hilarious is that Newsweek, the unofficial house organ of the Obama administration, ran a puff piece on Biden last week entitled “Why Joe is No Joke” .  Hint Joe, when you are a politician and one of the most sycophanic press journals on your side runs a story arguing that you are not a joke, that is most definitely not a good sign. Read the rest of this entry »


Obama Funemployment-Take 2

Wednesday, September 9, 2009 \AM\.\Wed\.

Tom Joad

Hattip to Ed Morrissey at Hot Air. Back in June I wrote a post noting that the LA Times had written an article describing the upside of unemployment under Obama.  Now the New York Times has gotten into the act with an article here:

Read the rest of this entry »


Concord Coalition: 14.4 Trillion Dollar Deficit

Friday, August 28, 2009 \AM\.\Fri\.

14.4 trillion

In this earlier post I reported that the Obama administration is predicting a 9 trillion dollar deficit over the next ten years.  Now, the non-partisan Concord Coalition is predicting here a 14. 4 trillion dollar deficit over the next 10 years.

Read the rest of this entry »


$668,621

Friday, June 5, 2009 \AM\.\Fri\.

Household Debt

Hattip to Daniel Indiviglio at the Atlantic.  USA Today is reporting that the share of the Federal debt for each American household is $546, 668 with private average debt of 121, 953.  Of course these numbers do not include the average household share of liabilities incurred by states and local levels of government.  Does anyone believe that we will ever climb out of this debt abyss except through the terrible remedies of hyper-inflation or debt repudiation?  As I have often stated on this blog the debt that we are amassing is fiscal lunacy and our economy will soon smash into a brick wall of government debt.


Debt Supernova Gets Worse

Thursday, May 28, 2009 \AM\.\Thu\.

Debt Supernova

I list below posts I have written on this blog about the US debt situation.  As pessimistic as I have been, apparently the debt situation for the nation is appreciably worse than even I thought.  Hattip to Ed Morrissey at Hot Air.  Tax revenues to the IRS are down 44% from where they were last year.  Previous debt projections, as Ed Morrissey points out, were based on the assumption that the loss to GDP this year would be -1.2%.  With GDP contracting at -6% during the first quarter on an annual basis, the economy will have to show a lot of growth for the remainder of the year for the target of a -1.2% GDP contraction to be reached.  I very much doubt if the GDP contraction will be much better than -2.5% and could easily be far worse.

Read the rest of this entry »


So Obvious, Even The New York Times Notices

Monday, May 4, 2009 \PM\.\Mon\.

red-ink

Hattip to Ed Morrissey at Hot Air.  The New York Times reports that Wall Street is alarmed at the matterhorn of debt the Obama administration is piling up.   The Times notes that 10 year Treasury Notes briefly rose to a yield of 3.17% last week, and the federal deficit is currently running at one-seventh of gross domestic product.  There is no mystery here.  Investors are looking at this debt and beginning to understand two simple facts:  it is never going to be repaid and it is doubtful if long-term politically the US can continue to pay the interest on this debt if it dominates an ever-growing portion of tax receipts.  I have discussed the issue of national debt a few times on this blog, here , here, here, here and  here.  We are pursuing lunatic economic policies and we are heading for economic catastrophe. 

Update: The People’s Republic of China,  i.e. Communist China, sharply curtailed  their US bond purchases in January and February before resuming purchases in March.  I never thought I would live to see the day when “Red” China would be rightfully concerned with the stability of the US economy and the wisdom of purchasing US debt instruments.


AIG Bonus Recipient Quits via NY Times Editorial

Thursday, March 26, 2009 \PM\.\Thu\.

Over the last week the news cycle has been enjoying a Five Minutes of Hate over the bonuses being given out to a number of individuals in the AIG Financial Product division, with some going to so far as to say that at a minimum they should all get jail time, and since that’s not possible they should see all their earnings taxed away.  Given the, “our problems are all the result of Wall Street greed” narrative which many have applied to our current financial crisis, and that as fallen human beings we are all prone to envy, this can hardly be surprising.

For those wanting to know about the reality behind the fracas, this editorial in yesterday’s New York Times is illuminating.  It is an open resignation letter from Jake DeSantis, an executive vice president of the American International Group’s financial products unit (and a recipient of one of the infamous bonuses), to AIG’s CEO.

Read the rest of this entry »


Red Ink

Wednesday, March 25, 2009 \AM\.\Wed\.

bush-obamabudget1

A look at the federal budget since 2000, with projections, for what little they are worth, by the White House and the Congressional Budget Office to 2019.  By CBO estimates last week, the budget deficits between now and 2019 would total $9, 300, 000, 000, 000.00.  The entire cost of WW2 for the US in 2008 dollars was 3.6 trillion.  This year the budget deficit will total 13% of our gross domestic product.  This isn’t economic policy, it is lunacy.  These type of deficits are completely unsustainable, and we are running towards national bankruptcy.  It is impossible to borrow these type of funds from abroad.  We will simply create the funds out of thin air.  The long term impact on our children and their children can be easily imagined.  As the Heritage Foundation points out, this is a completely bi-partisan disaster.  Politicians have acted like teen-agers with stolen credit cards for far too long.  However, this will stop.  It will stop either by voters throwing out of office the fiscally irresponsible, or, much more likely in my estimation, the economy will simply hit a brick wall.  This will not, cannot, go on.  How it is stopped is up to us.

Update I:  The President of the EU slams current US economic policy as a road to hell.  I never thought I would live to see the day when a President of the EU would have more economic sense than a President of the US.

UpdateII:  Hattip to Instapundit.  A sign of things to come.  Stocks slide after a lack-lustre sale of T bills and notes: 

“Bond prices fell after the auction of $34 billion in 5-year Treasury notes. The yield on the benchmark 10-year Treasury note, which moves opposite its price, jumped to 2.77 percent from 2.71 percent late Tuesday. The yield on the three-month T-bill rose to 0.19 percent from 0.17 percent Tuesday.

Investors gave an unexpectedly cool response to the note sale just a day after a $40 billion auction of 2-year notes suggested strong demand. The government is running up huge deficits in order to fund an array of plans to provide stimulus to the economy and support to the ailing financial system. Any suggestion that demand for U.S. government debt is weakening is a negative for stocks, simply because Wall Street has been relying so heavily on the government’s rescue plans.

The surge of worry over the debt auction wiped out the market’s early optimism in response to durable goods and home sales data.”