U.S. Debt is a "Fiscal Cancer"

Gee, ya think?

Party in the U. S. A.

Fannie and Freddie are so far underwater that you can't hang even more lousy mortgage loans on them? What is the government to do? Get fiscally responsible? No way, Jose! They can still force the FHA to lend money to people who shouldn't get loans so they can default like everyone else. The beauty of it all. The taxpayer cleans up the mess. Well, actually to be technically honest, we'll print our way out of the mess. Yeah baby! (Mortgage) Party in the USA!

Must Read of the Month (and probably Year)

Take the time to read this article from the Atlantic Monthly. Very important! Here is the heading paragraph.

The crash has laid bare many unpleasant truths about the United States. One of the most alarming, says a former chief economist of the International Monetary Fund, is that the finance industry has effectively captured our government—a state of affairs that more typically describes emerging markets, and is at the center of many emerging-market crises. If the IMF’s staff could speak freely about the U.S., it would tell us what it tells all countries in this situation: recovery will fail unless we break the financial oligarchy that is blocking essential reform. And if we are to prevent a true depression, we’re running out of time.

To Eternity...and Beyond!

Buzz Lightyear? No. The Federal Deficit. Talking about blowing through records, at least the Detroit Lions need a whole season to set the record for futility (0-16). The government only needed 3 months! to blow through the record for "biggest budget deficit in history!" Congratulations government!!

Print or Tax

For winning the Nobel Prize in economist, we find Paul Krugman, um, not very smart when it comes to economics. His answer to the disaster that Bush's economic and regulatory policies have put us in is for the government to spend more money on infrastructure. In the process he demonstrates that he has not read Henry Hazlitt's book Economics in One Lesson. Krugman makes the fatal error of not considering anything other than the immediate issue when he studies an economic plan. He appears to have given no thought, and has absolutely no plan for what to do with 1.2 trillion dollar deficits, other than to say, "we will worry about that later."

Kevin Hassett in Bloomberg worries about it now, and rightfully so. He says that the government will have only two options as an end game: print or tax. If we print we will end up like the Weimar Republic in Germany, with hyper-inflation. How about if we tax?

While advocates of Keynesian-style stimulus [Paul Krugman is one] are correct that this economy is terrible enough to warrant dramatic action, it is hard to understand how such a fiscal path might help. So what if second-quarter gross domestic product blips up a little bit? What business is going to expand its operations with the mother of all tax hikes peeking over the horizon? If government spending provided such a wonderful boost to the economy, we would be in Nirvana already.

The Mother of All Ponzi Schemes

You thought it was Madoff's scheme to bilk investors of 50 billion. Ha! Small potatoes. Leave it to John Stossel to point out who is actually running the largest Ponzi scheme in history. By far!

There's one thing I can say on behalf of Madoff: He never forced anyone to participate in his scheme. That's more than I can say for the government. Through taxation and inflation, it forces us to pay for all its schemes.

King Paulson in Control

Henry Paulson, King of America, is in control and on the beat, folks. He has lent out $2,000,000,000 (2 trillion) to troubled institutions, that would be $2 trillion of the taxpayer's (yep, you) money, but is refusing to say where the money is going. When you are a king, you don't have to tell people what you are doing with their money, that's the point of being king!

Opening Pandora's Box

What happens when you start handing out money, willy-nilly, to anyone who you think needs it?  Everyone starts coming to you hat in hand, holding out their tin cup.  Today GM/Chrysler, tomorrow...who knows.  Thanks so much Hank and Ben. 

Oh, and did I mention that GMChrys wants to hand off some toxic pension obligations onto the government at the same time?   Ha, ha, ha, hey, it all make sense.  If the government is buying mortgage crapola, they may as well take on pension crapola as well. 

What Caused the Economic Meltdown?

Wow! An excellent video. I'm reluctant to lay all of the blame at the feet of the Dems and Obama, but here is information you've never heard.

Prescription for Disaster

Don't worry folks, the U.S. has a plan! The government is going to come riding to the rescue of the banks and SOLVE EVERYTHING!! All they need to do is make some quick changes to certain laws and take the banks bad debts and put them on the tax payer.

LOL. This is exactly what we expect from these Yahoos and I am here to tell you that they will inevitably only make the problem worse. This is the history of financial disasters. The government will come up with a plan which will make things better for a short time, then it will backfire and things will get worse. Just another step on the Road to Serfdom for us.

How to Ensure that College Costs Keep Rising

Naturally, instead of having the government back loans (which isn't working) just have the government make student education loans. This will keep the money flowing to students which will keep the students coming to the universities, which will allow the universities to keep on raising rates at twice the rate of inflation. Wow! Everyone is happy.

More on the Rapidly Approaching Orwellian State

An honor student was strip searched at her local middle school to "prove" that she didn't bring advil to school. This column has a pretty good evaluation. That the governing powers can do this sort of thing with little recourse by individual citizens is unacceptable!