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Doomed by Debt

Unfortunately for the romantics out there, it is not love that makes the world go around. It’s money that makes the world go around, right? Well, if you think of money as those units of currency you carry in your wallet or pocket, then no it’s not actual money. Actual money (currency) is in relatively short supply. No, what makes the world go around is money created out of thin air; otherwise known as credit or debt. Think fractional reserve lending. Credit/debt is money that was never generated by the real economic production of a good or service. Credit/debt is, however, […]

Over 500% increase in Federal Student Loan Debt under Obama

Hat/Tip to CNS News. His poll numbers might be tanking, but there is one number that is rising for President Obama. Since President Barack Obama took office in January 2009, the cumulative outstanding balance on federal direct student loans has jumped 517.4 percent. The balance owed as of the end of May was $739,641,000,000.00. That is an increase of $619,838,000,000.00 from the balance that was owed as of the end of January 2009, when it was $119,803,000,000.00, according to the Monthly Treasury Statement. And evidently, this isn’t fast enough, nor high enough for Obama, because he’s using his “pen” and […]

The New World “disOrder” Is On The Horizon: The Orchestrated Decline of America

America’s world dominance since the break up of the Soviet Union is coming to an end. Pundits will write millions of words debating the “how” and the “why” of America’s fall from grace. To borrow a phrase from our current esteemed leader,  America has been  punching above its weight class, for many years. Our government has spent more than it has taken in for over three decades. Things took a decided turn for the worse during the G. W. Bush administration. The Clinton administration had the benefit of the inflating Dot.com bubble and the inflating housing bubble and, as a […]

Obama Has Deep Pockets (Yours!)

“You’re telling me we have to go spend money to keep from going bankrupt?  The answer is yes, that’s what I’m telling you.” – Joe Biden “We’d all like to vote for the best man, but he’s never a candidate.” – Frank McKinney ‘Kin’ Hubbard “When I was a boy I was told that anybody could become President; I’m beginning to believe it.” — Clarence Darrow “In order to become the master, the politician poses as the servant.” – Charles de Gaulle The biggest spender in the history of history, flush with a brand new letter of credit courtesy of John Boehner and company, […]

Detroit: A Progessive’s Dream Come True?

With all the scandals in Washington grabbing the headlines, the announcement that the city of Detroit is planning to default on $2.5 billion of unsecured debt is not getting the attention it should. From Fox News:  Detroit said Friday it would stop making payments on about $2.5 billion in unsecured debt and ask creditors to take about 10 cents on the dollar of what the city owes them in a move to avoid what bankruptcy experts have said would be the largest municipal bankruptcy in U.S. history. Detroit is not just some decaying city you are fortunate enough not live […]

BRIC and MIST Economies vs the PIIGGS and the US

Rhetoric, good intentions, philosophies, ideologies, speeches- they don’t mean as much to me as good policies. Purity of candidates, good communication skills, and hard work only mean anything if they are in pursuit of public policies which work to better protect human life, liberty, and property. Recently on RealClearPolitics Alan Reynolds wrote an excellent article The Truth About Taxes and Spending in Europe comparing the results of the public policies of two different sets of nations: …Several European countries, including Cyprus, have been mired in economic stagnation or decline for five years or more. Yet other countries in Asia and […]

Obama Encouraging Banks to Make Easy Loans to People With Poor Credit to Destroy America?

We all agree that the Great Recession of 2008 that is turning into the Obama Depression was caused by poor lending practices by the government run corporations Fannie May and Freddie Mac. There easy loan programs to people with poor credit histories predictability led to problems when these people with a history of not paying back their loans did not in fact pay back their loans and the banks were left holding more and more toxic debt. These losses, caused by government policies and encouraged by government bureaucrats, led to a lot of people losing their jobs and losing their […]

Fractional Reserve Banking and Other Things About Banks That Confuse Me

Fractional Reserve Banking Where do bank profits come from? If we restrict ourselves to thinking only about commercial banks and forget about investment banks (many banks are both things), I think they make money primarily by making loans and charging interest. Although banks start out life with capital from their investors, they really make money by making loans of the money deposited by you and many other people or businesses. In other words, banks only maintain a fraction of the money deposited with them on hand as reserves to cover daily operations. So, if a bank has deposits (assets) of […]

The 7 Pieces of Advice by Trotsky for Obama, found in the 1934 Chicago Tribune Cartoon ‘Planned Economy or Planned Destruction’

This image is taken from the 1934 Chicago Tribune cartoon ‘Planned Economy or Planned Destruction?’. It focuses on the character of Leon Trotsky, who is laying out a series of policy goals for the United States. The Chicago Tribute suggested in its latest reprint of this cartoon that we take a look at this cartoon and see if it rings true in today’s political and economic climate. Whereas others have focused on simply analyzing the larger cartoon to identify all the characters in it (for the best analysis see this post), today I am going to attempt to see if this cartoon […]

Liberal Education Creates Dumb People

It wouldn’t come as a surprise that people that go to universities tend to be liberal.  And, considering that they are liberal, they must live in economic la-la-land. And, it is true, as proven by Bookworm… One of the things that made the rounds on my Facebook was a boastful poster saying that those states with the highest number of college-educated people all went for Obama.  The implication is that these smart Blue State people, unlike the ill-educated yahoos in Red States, are the ones who have the brains and ability to understand how Obamanomics will serve America. What the genius […]

Newsweek to Cease Publishing: And Nothing of Value was Lost

Today, Tina Brown, the head of Newsweek and the Daily Beast, announced that the long time magazine would stop publishing, and be a fully on-line entity.   Here is part of her announcement… We are announcing this morning an important development at Newsweek and The Daily Beast. Newsweek will transition to an all-digital format in early 2013. As part of this transition, the last print edition in the United States will be our Dec. 31 issue. Meanwhile, Newsweek will expand its rapidly growing tablet and online presence, as well as its successful global partnerships and events business. Newsweek Global, as the all-digital publication […]

In the end we will all pay for this QE3 deception

  In the Art of War Sun Tzu states that “all warfare is based on deception.”  Elections are about war; an ideological war for the hearts and minds of the electorate.  Candidates attack and counterattack each other until the day after Election Day when one emerges victorious and the other concedes defeat.  So if election campaigns can be viewed as war then one can conclude that deception is used to mask truth and divert the attention of the electorate away from the issues that truly matter.  So far this election cycle President Obama has been masterful at deflecting and deceiving the people.  […]

Is It Too Late? Is It EnevitableThat The Debt Will Crush The World Economy?

It has been a while since I have done a post on the economy and the debt bubble that has engulfed the United States and Europe and most of the world. In part this because the subject is so depressing. It is difficult for me, as I read more and more about the debt crisis, to see any way that the US or the world, for that matter, can work its way out from under the crushing weight of the debt they have incurred. In the United States, we tend to focus on our $16 trillion national debt, which is […]

Conservatives need to stand up, speak up, and drive the narrative

I’m tired of the left driving the narrative this election cycle.  We have anemic economic growth, over 8 percent unemployment, little to no job growth with a bleak outlook, no budget for three years, Obamacare and the Dodd-Frank financial reform laws destroying our healthcare and economic systems, over $5 trillion more on the national credit card, the loss of our triple AAA credit rating, failed green energy companies at the taxpayer’s expense, a massive tax increase (Obamacare) on the American people, the fast and furious scandal leading to the Attorney General of the United States being held in contempt, the […]

Winning The Cultural War Is Critical To Winning The Political War

Jack Curtis wrote a very thought-provoking article at American Thinker last with the title.  The Big Picture: Our Curiously Failing Civilization.  He starts out Governments  around the world are in various stages of financial failure, all seemingly  trying to be Argentina.  Curious, no?  Look at debt and deficits; you see government spending issues; most of the few  exceptions have other problems.  Look then at global migration patterns  showing people leaving poor places for places going broke, an unhappy trend  line.  Look anywhere; we can’t seem to govern ourselves worldwide, while  people protesting are multiplying everywhere. Mr. Curtis, in supporting his argument that civilization is in decline, touches […]

Thinking About Paul Ryan’s Budget: 2012 Our Last Chance to Stop Collapse?

John Hinderaker of Powerlineblog had lunch this week with Representative Paul Ryan (Republican) and got a chance to talk with him regarding his fully written and complete budget proposal. Here is how John summarizes Representative Ryan’sapproach to his budget: The United States has a brief time remaining when we can solve our budgetary crisis without drastic measures. Soon, our debt to GDP ratio will inhibit economic growth, the sheer magnitude of the debt will overwhelm efforts to get it under control, and rising interest rates will crush all other budgetary considerations. For now, we have an opportunity to solve the fiscal crisis without, for example, having […]

We Were Downgraded Again, and the MSM Didn’t Cover it

Here’s something that perhaps you have not heard.  Apparently, our credit has been downgraded by another ratings firm… Credit rating agency Egan Jones downgraded the United States Thursday on concern over the sustainability of public debt. Egan Jones is one of the most important ratings firms in the world; they lowered our credit level from AA+ to AA. The firm reduced America from AAA to AA+ in July 2011, just before Standard & Poor’s did the same.  Egan Jones warned. “Without some structural changes soon, restoring credit quality will become increasingly difficult . . . without some structural changes soon, restoring […]

Paul Ryan: What real leadership looks like

Folks, we had better start listening to Paul Ryan, because we’re heading down the same road as Greece and very soon our debt is going to spiral out of control. It will reach a tipping point and we won’t be able to do anything to stop it. It’s an election year and both sides appear to be playing politics with our future. They don’t want to deal with this debt crisis because it’s the silly season when politicians paint a picture of rainbows and unicorns for the electorate. They want us feeling good about ourselves and buying into the empty promises […]

New Liberal Hallucinagen: Spenditol

ch-video-bannercorrect

I caught this over at Nice Deb, so I thought I’d share it here… I think this will be a great day for video posts.  Stand by for more.

Is China About To Be A Party Pooper?

Could it be that the long running party of living of of other people’s money is about to come to an end? Zero Hedge broke a story yesterday that China is planning to reduce their holdings of US bonds by two-thirds or about $2 trillion. Zero Hedge is considered as a generally reliable source. But I have questions. Who’s going to buy $2 trillions worth of US Bonds? The Fed? With what? More funny money? Would this really be in China’s best interest? Here are some excerpts from the story: All those who were hoping global stock markets would surge tomorrow based on a […]