NOTE: The Pink Flamingo has been working on this post, off and on, for weeks. It is a disjointed mess, but right now I really don’t care. I’ve been throwing things into the mix for ages. One thing that stands out is the fact that things could have been handled much differently, but Obama screwed it all. But, I swear the great liberetarian tampering has not made things any better.
We have so many things going on here, not the least of which is the fact that our leaders don’t appear to give a rip about anything but their own ideological dogma and being reelected. It is like they don’t give a rip about doing what is right for the country, only what is right for themselves.
If billionaires are go great, why is it that John Huntsman’s father is only one of 19 of the world’s 1200 billionaires who have given away over a billion bucks?
“…His life and family experience — his father and mother and stepmother killed by cancer and a personal journey through prostate, oral and two bouts of skin cancer — shape his vision, he said. Since the 1990s, he has focused the bulk of his philanthropy on fighting the disease, with a huge research and treatment complex up and running at the University of Utah here and a major expansion set to open this month. Of the world’s 1,200 or so billionaires, Mr. Huntsman is one of only 19, according to the wealth-watch monitors at Forbes Magazine, who have given away more than $1 billion….”
FOX News is at war with the Feds over everything from unions to the Fed, to Obamacare. The newest fad at FOX is going against government regulations, which the libertarians say is killing the creation of jobs. Then again, from what small business are saying, what is killing jobs are the Dodd-Frank banking regulations. Since that is NOT what the libertarians, Rupert Murdock among them, want you to hear, FOX is now going after them. Don’t get me wrong, I think we could do away with about 75% of ’em and do fine. That’s not the point though. It is about libertarian manipulation.
Libertarians say that regulations are one of the reasons the economy is in such bad shape.
Or, is it something else?
“…The number of workers making $1 million or more rose to almost 94,000 from 78,000 in 2009. However, that was still below some earlier years, including 2007, when more than 110,000 workers made more than $1 million each. At the very top, the number of workers making more than $50 million rose in 2010 to 81, up from 72 the year before. But average pay in this group declined $4.5 million to $79.6 million.
What these figures tell us is that there was a reason voters responded in the fall of 2010 to the Republican promise that if given control of Congress they would focus on one thing: jobs.
But while Republicans were swept into the majority in the House of Representatives, that promise has been ignored.Not only has no jobs bill been enacted since January, but the House will not even bring up for a vote the jobs bill sponsored by President Obama. His bill is far from perfect, but where is the promised Republican legislation to get people back to work?
Instead of jobs, the focus on Capitol Hill is on tax cuts for corporations with untaxed profits held offshore, on continuing the temporary Bush administration tax cuts — especially for those making $1 million or more – and on cutting federal spending, which mean destroying more jobs in the short run.
At the same time, nonfinancial companies are sitting on more than $2 trillion of cash — nearly $7,000 per American — with no place to invest it profitably. This money cannot even be invested to earn the rate of inflation. All this capital is sitting on the sidelines waiting for profitable opportunities to be invested, which will not and cannot happen until more people have jobs and wages rise, creating increased demand for goods and services.
More of the same approach we have had for most of the last three decades and all of the last ten years is not going to increase demand, create more jobs or enable overall prosperity. In the long run, continuing current policies will make even the richest among us less well off than they would be in a robust economy with government policies that foster job creation and the capital investment that grows from increased demand….”
On Wednesday, David Frum posed the following:
“...Question: if conservative journalists could write so feelingly about the need to inject credit during the downturn of 1990-1991, how is that they have arrived at exactly the opposite policy conclusions during the much more severe downturn and deleveraging of 2009-2011? The need for monetary ease seems even greater this time than last – and yet the policy recommendation has been utterly reversed. What’s changed?…”
Frum is highly critical of the letter the GOP sent to the Fed demanding thy tighten money. McConnell wrote:
“…We have serious concerns that further intervention by the Federal Reserve could exacerbate current problems or further harm the U.S. economy. Such steps may erode the already weakened U.S. dollar or promote more borrowing by over-leveraged consumers…”
Personally, The Pink Flamingo would like to ask – what the hell is Mitch McConnell smoking? Frum wrote:
“…As anxious as investors are about US personal debt however, they are blithe to nonchalance about the US public debt. Interest on that debt has sunk to record lows: under 2%.
The markets see deflation and depression, not inflation. Yet ironically this non-existent and much dreaded inflation is exactly the remedy we need to lighten the load of consumer debt.
As is, we’re looking at a continued economic slump, more unemployment, and more deleveraging via continuing catastrophic consumer default on mortgages, car loans, credit cards, and student aid. And now the GOP leadership is urging that the Federal Reserve make the catastrophe worse? To what end?..”
Let’s put it more succinctly than Frum. American SMALL business, as opposed to BIG (libertarian) business grows from having lose credit. On Cavuto, Michael Reagan (son of Ronald, remember him?) gave the example of his daughter. She purchased a townhouse 4 years ago at around 6.5%. Interest rates are historically low. She wants to re-finance. Now though, she no longer meets their qualifications. If she were to get a lower rate she would have more money to SPEND.
I don’t get it.
Granted, I am not an economist. I know practically nothing about economic matters other than the fact that to me, something is rather fishy about the drop in housing prices. Granted, people in this country went a little nuts when they started living beyond their housing means. A 3500 square footer was good enough for their parents, but they needed 5000 square feet. They were, though, living on a 3500 square foot income. It is as simple as that.
A regular Pink Flamingo reader may assume that I automatically blame all ills on libertarians. Nothing could be farther from the truth. Most bad thing are caused by libertarians and liberals. In many ways they are basically one in the same – abjectly irrational.
“…The United States experienced one of the largest drops in economic freedom, falling to 10 place overall from sixth in 2010. Much of this decline is a result of higher spending and borrowing on the part of the U.S. government, and lower scores for legal structure and property rights….Economic Freedom of the World: 2011 Annual Report shows that the average economic freedom score fell to 6.64 in 2009, the lowest in nearly three decades, from 6.67 in 2008. “In response to the American and European debt crises, governments around the world are embracing perverse regulations and this has huge, negative implications for economic freedom and financial recovery,” said Fred McMahon, Fraser Institute vice-president of international policy research. …”
From the Frum Forum comes a fascinating study about libertarian based economies. Guess what – they don’t work.
“…2. The study reveals its libertarian bias by having countries ranked on “Sound Money”. This study prefers countries which practice “low and stable inflation.” Now let me be clear, low inflation and price stability is desirable in many circumstances, but not necessarily in all circumstances.
Which country ranks #1 in “Sound Money” for the study? Japan! The country which has suffered from crippling deflation and a lost decade of growth. A lost decade that many blame on the Bank of Japan’s lack of monetary stimulus.
Even more ironically, Japan also happens to be ranked #22 in the study, way below America’s ranking of #10. Sound money does not seem to be helping Japan out of its economic malaise….”
It is rather damning if you think about it. Many of the countries on the list the “Top Ten” are countries libertarians love to hate.
“…Hong Kong offers the highest level of economic freedom worldwide, with a score of 9.01 out of 10. The other top scorers are Singapore (8.68), New Zealand (8.20), Switzerland (8.03), Australia (7.98), Canada (7.81), Chile (7.77), the United Kingdom (7.71), Mauritius (7.67), and the United States (7.60). …”
Once again, making the misfortune of listening to FOX, I heard the term that under-water mortgage owners are now “stuck” in their homes.
What the heck?
I was always taught you are so careful when buying/building a home because it is a lifetime proposition. There are things that don’t make sense to me. I am constantly reminded of Matthew 7:24-27
24 ‘Everyone then who hears these words of mine and acts on them will be like a wise man who built his house on rock. 25The rain fell, the floods came, and the winds blew and beat on that house, but it did not fall, because it had been founded on rock. 26And everyone who hears these words of mine and does not act on them will be like a foolish man who built his house on sand. 27The rain fell, and the floods came, and the winds blew and beat against that house, and it fell—and great was its fall!’
Where does personal responsibility come into all of this?
We must be honest. Something else is at play here. It is exemplified by two completely different stories, and shows how abjectly the Obama Administration has screwed our country and our economy. First, is the story of school districts using money they can’t afford to spend, spying on parents to see where their children are going to school.
The second is the way the Obama Administration has literally destroyed our space program and thousands upon thousands of jobs.
“…Cernan is the last man to walk on the moon and, at the rate things are going, that may have to be changed to the last American to walk on the moon.
Cernan said, “We don’t have the capability today to put a human being in space of any kind, shape or form, which is absolutely, totally unacceptable when we got the greatest flying machine in the world sitting down at Kennedy in a garage there with nothing to do.”
He was speaking of the space shuttle, an old but arguably serviceable spacecraft.
NASA, which today monitors climate change and engages in Muslim outreach, has announced plans for a “Space Launch System,” or SLS, to take astronauts to nearby asteroids and Mars in the planned six-person Orion space vehicle….”
What does The Pink Flamingo take away from all of this?
We have a mess.
We have an infrastructure that is crumbling.
Obama has destroyed our space program.
We need major investment in electrical power infrastructure.
We need drilling for oil.
Our interstate highway system is starting to crumble.
I can’t see why federal investing in some major infrastructure projects is going to break us as a nation. Unfortunately, the libertarians who are now in control won’t allow it. Our Republican leaders are too cowardly to fight them.
So, we’re stuck.
Investment in infrastructure is an investment. It will generate good job, with every cent spent coming back into the economy.