Pages

November 5, 2010

All Signs Point To Fail

I'd rather do knee-bends over a lit Bunsen Burner than read the financial news. This stems from my life-long hatred for Econ 100 and the Samuelson textbook, and from my youthful and phony indifference to money.

I've almost always had as much money and things as I needed, and have spent most of my adult life disposing of things I thought I needed when I acquired them. In fact, Self-Storage units have meant a lot to me, as well as yard sales (to get stuff), and land fills (to unload stuff).

Until now I always thought that I, and my family, would make out and make do. We'd survive no matter what. Even getting old, and some would say, sick, hasn't abolished this conviction.


However, it's under pressure now in Connecticut, where we replaced a Republican governor with a Democrat, through voter shenanigans. We sent a regulation Democrat Prog to Dodd's old seat, and we re-elected the entire Democrat delegation to The House in Washington. Our State House is huge majority Democrat. We're broke with the highest per-capita debt in the country, our bond rating has been downgraded by Moody's, and the ideologically inbred tribe that caused it still rules.

Listen to them, and your hair hurts. Nowhere in their northeast political orthodoxy is the awareness that consumers require producers, or that the "little guy" is little because he chose to be. Or that odious "Big Business" also creates "well-paying jobs" for "working families", that EVERY claim on society is a "special interest", and that the northeast is post, post, post-industrial. Heavy industries are in ragweed covered graves or moving to red states.


You hear these hacks, but you really don't. They're like painted shamans in the frothing stage of Talking in Tongues, reciting doggerel from temple carvings in a vanished language. They confuse you, but they also piss you off because the SEIU apes understand and treasure every word of it. It must be explained in Samuelson's chapter on The Endless Free Lunch. No one could be that stupid without being educated to it.

But someone is that stupid, and it's Ben Bernanke. Ben is going to print $600 billion and buy Treasuries with it - in the crazed belief that this will make Treasuries more attractive by raising their interest rate from nearly zero (to what?) cause a borrowing, and therefore a spending, boom while devaluing the dollar and monetizing the debt through inflation. If there's more let me know.

Ben is an economist retained by Obama, along with Tim Geithner. In a world where Paul Krugman can win a Nobel Prize in Economics, this isn't as freakish as it seems. If you want more on the economic disaster to come, search Instapundit for "Quantitative Easing", and see what it means to you. And remember these awful facts:

In 2009 the Federal government spent $3.5 trillion and received $2.1 trillion in revenue. They borrowed $1.4 trillion, or 40% of the budget and 10% of GDP. Our publically-held debt is $7.5 trillion, without Bernanke's lunacy. If the "recession" ended today, our annual deficit and borrowing requirement is $1 trillion for ten years. And at the current spending rate, by 2020 we'll be $20 trillion in debt with annual interest payments of almost a trillion dollars.

Take cover.

13 comments:

They Say/We Say said...

Dig a hole under a Full Moon, try to refill with the same dirt. You can't.
Dig a hole under a New Moon, try to refill with the same dirt. You can't.
One night's moon, to much dirt to refill.
The other night's moon, there isn't enough dirt to refill.
Strange but true.
Printing to much money under a bad moon, will not refill the economy.
Strange but sad, sad.

Toaster 802 said...

Change Connecticut to Vermont and the same story applies. The socialist numbskulls here act like none of this is happening.

Vermont. Socialists will Jersey it.

Toaster 802 said...

To good to pass by...

Quoted and linked at http://greenmnts.blogspot.com/2010/11/sound-familiar.html

Nice call Rhod.

Opus #6 said...

Why do they even bother printing it. Why don't they just declare that Monopoly money is now accepted legal tender.

T. F. Stern said...

My wife and I just returned from our evening walk and this was one of the topics we discussed. Let's print some more money to pay for all that debt we've created; my goodness, you'd think Blondie and Dagwood were in charge of the Federal Reserve.

Zio Rico said...

Obama is laughing while he leads the USA into chaos.

Nickie Goomba said...
This comment has been removed by the author.
Nickie Goomba said...

"When you get one of those brain freezes from chugging a giant milkshake, cure it by drinking another one quickly."

- Baruk Obama
(your trusted friend)

The_Kid said...

Buy Gold in any form. And refinance your mortgage. 15 yr or less, if you can.
Put your cash in inflating assets, like gold.

Michael said...

I love the milk shake cure! However, this is for "Liberal Fools Only" (dangerous) Eat the largest Ham Sandwich you can make and take a nap !!!!

sig94 said...

This is the new Illuminati - the Idiorati. Fools and incompetents running rampant throughout the highest levels of our government.

Rhod said...

Hush, everybody. I think I hear Eric Holder outside....

Rhod said...

P.S.

Michael. Cass Eliot proved that it works.