Maybe I should've listened to more Crass growing up...despite the fact that they didn't know how to sing or play their instruments. Then maybe I could've recognized what Paul Ryan (R-WI) was saying about powerful corporate interests earlier instead after the economy imploded. From Forbes:

We must champion an aggressive reform agenda to tackle our outdated financial regulatory structure, the convoluted and anti-competitive tax code, and the looming entitlement crisis, and to fix what's broken in health care, energy, and more. We should focus on removing the hurdles the government has erected, rather than further centralizing power in Washington. The legislative reform must focus on empowering individuals instead of bureaucrats.

We cannot lose our commitment to individual liberty--a commitment we've shed blood to defend in generations past. The American idea cannot be defeated.

Even if the bailout saga wasn't an incredible drain on our nation's treasury (which it was), it was a tremendously dangerous precedent since it empowered moneyed interests with gangs of lobbyists and left the average small business owner out to dry. It's refreshing that a true conservative in Washington actually realizes this instead of kissing asses for campaign contributions. Paul Ryan for emperor!

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Chris Dodd: Not an adequate substitute for hope in America

Matt Taibbi of Rolling Stone has another great article on the crony capitalism running amok in the Obama White House, where there is more starched suits than a Tokyo subway terminal. But I sort of lose him when he starts talking about cleaning up this mess of pigs at the trough by calling in...Chris Dodd?!?:

The original measure, drafted by chairman Christopher Dodd of the Senate Banking Committee, is surprisingly tough on Wall Street — a fact that almost everyone in town chalks up to Dodd's desperation to shake the bad publicity he incurred by accepting a sweetheart mortgage from the notorious lender Countrywide. "He's got to do the shake-his-fist-at-Wall Street thing because of his, you know, problems," says a Democratic Senate aide. "So that's why the bill is starting out kind of tough."

It's sort of like he's upset that a bunch of Wall Street people are in charge of the country instead of his progressive buddies being in charge of the country. I suggest that no group of men or women should have so much command and control of the economy, because I believe that "Absolute Power Corrupts Absolutely" and sort of extrapolate all my political beliefs from there.

Taibbi then takes aim at the "teabaggers" on page 6 who he dubs a pack of "idiots" because they aren't protesting Obama correctly. I dunno, I thought fistgate was both funny and worth getting outraged about.

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The CEO of Goldman Sachs

Not long ago, Godman Sachs was famously called the Great Vampire Squid Wrapped Around the Face of Humanity. Well that squid certainly has some good connections with the CDC to get this many H1N1 vaccines when health care workers and the military are up in arms about the shortage. From Guardian:

New York's health department confirmed that vaccines had been shipped to banks - Citigroup, which asked for 7,200 doses, received 1,200 while Goldman Sachs, which applied for 5,400, was given 200. A spokeswoman said distributing vaccines in workplaces would "alleviate stress and pressure from community healthcare settings and hospitals"

The NYC health commissioner tries to defend this egregious blunder by saying the boobs on Wall Street are going to distribute it to at-risk employees. After the events of the last few years, I would place Wall Street execs that took bailout money somewhere in line between the surviving cast of Three's Company and the Fluffers' Union on the scale of national priorities. Not even Robert Gibbs would defend this ridiculous policy.

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An article in Reuters points out something that absolutely no politician in America wants to say (unless of course it's a boring Ron Paul monologue), America's entitlement spending is sending it into collapse. This article is in reference to the $250 checks for old people to keep them from making trouble:

Two examples — one ridiculously expensive, one just ridiculous. But both reveal a nation completely unwilling to deal with current trillion-dollar deficits or long-term shortfalls many multiples of that number.

What confidence should dollar investors have that America will really cut entitlement spending? Very little. Instead, we are more likely to see huge tax increases that could cripple productivity, or further dollar neglect, or a central bank that turns dovish on inflation. Or perhaps all three.

If Washington doesn’t care to support the dollar, why should investors?

But who cares about the long-term economic stability when you can demonize Fox news for another news-cycle to distract the public. Politicians could care less about long-term viability and only seem to give two shits about pleasing their pet interests so they have campaign cash for the next go-around. But sooner or later, we have to blame ourselves for continuously electing these yahoos.

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Crank up the Hanson, buy some more shares in Pets.com, and pop the champagne, because it's 1999 all over again. Similar to March 1999, the Dow has gone above the 10,000 mark (again), and you can watch this retro CNBC video if you don't believe me. But, Peter Schiff drops a big turd in the party punchbowl by saying that the Dow is up because the dollar is in the crapper, and there's no real recovery in sight.

Eh, well.

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It's a bit of a concern when the top blogger from the influential Center for American Progress advocates that a weakened dollar would be a good thing for the country. From Yglesias:

Meanwhile, the interests of American tourists aside, a falling dollar is exactly what the American economy needs. It’s a way of, in effect, driving wage levels down to a level at which increasing employment is economical and getting us out of current sky-high unemployment. Of course for the same reason foreign central banks will want to bolster the value of the dollar in order to prevent unemployment from rising in Europe and Asia. I think the real risk here, however, is that foreigners will go to far in terms of trying to sustain an unsustainable situation and ultimately prompt a bigger breakdown.

I understand that Keynesian economics focuses on massive spending programs to get the country through tough times, but how is turning the dollar into monopoly money going to do anything but lower the standard of living and piss off the Chinese. True, it's a natural market correction that the dollar is dropping into the crapper, but doesn't that have to do with the federal government printing too much money? Maybe, the President and Congress should, you know, stop pissing away the taxpayer's money like the world was going to end.

I don't pretend to understand this crap, but I do know that I made the decision to convert all the surplus dollars I had into Thai Baht, and a lot of other people are buying gold like it was nude pictures of Megan Fox. Yes, I chose a country's currency where a coup could break out at any minute over Uncle Sam's money. Yes, that means I am allied with the Taliban and Hamas, and I'm sorry for that, but I've got to live off this money. Ever since we nixed the gold standard in the 70s, money has been backed by the credibility of the US government, and that credibility isn't looking too promising at the moment.

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Reason notes that the criticism from Andrew Sorkin of the Masters of the Universe on Wall Street that ruined our country is subtle, but it pretty much shows that the cronyism between Goldman Sachs, Morgan Stanley, and the feds was worse than a Skull and Bones meeting. The piece is very informative, although somewhat dry. However, he does throw in this little tidbit to make people without MBAs happy:

Paulson, who had been living on barely three hours of sleep a night for a week, was beginning to feel nauseated. Watching the financial industry crumble in front of his eyes—the world he had inhabited his entire career—was getting to him. For a moment, he felt light-headed.

From outside his office, his staff could hear him vomit.

At least there is a little justice in this world.

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If you would've said 100 years ago that the country responsible for most of the modern world's ideas on everything from democracy to military tradition to the world's international language would be some second-tier socialist backwater, it would've been bullocks. But it seems the once great nation is having some very serious problems apart from their Prime Minister getting caught up in a "Blood for Oil" scandal. Newsweek pinned the decline of Great Britain on the economic crisis, but the Sunday Times notes a dangerous entitlement mentality that is dragging down the country from within:

Those cautionary words haunt us now as we discover that 5m adults have not worked since Labour came to power 12 years ago. Even excluding those who are in education or have only recently completed it, and discounting those who have left the labour market through age or ill health, 2.5m have been jobless since 1997 at least. There are now 3.3m households — one in six — with no one over the age of 16 in employment and 1.9m children living in families without a parent in work.

While the recession is increasing the numbers, it clearly did not cause the problem. Those millions remained idle during 10 years of boom when the economy created many jobs that immigrants happily filled. The workless have been immune to programmes of training and mentoring. No reform in our education system has dented their numbers and repeated efforts to tighten the criteria for invalidity benefits or “sharpen” claimants’ contact with the labour market have failed.

Why would you work if you could sit around playing Xbox all day and collecting paychecks from the government? Sure, society should do something to help the poor, but at what point does it become a dangerous cycle of dependence? These are questions I don't think politicians think about as they buy votes by sending their respective country's deeper into debt.

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Awesomely Awesome Graphic From Rapture Ready Radio

So, I was sent to this luncheon for work hosted by the UN and the speaker was talking about sustainable agricultural practices and how to improve the environment in rural areas of developing countries. He stated that the development sector needed to stop acting on a "Soviet Union-type central planning" model and start thinking more about markets (i.e. making environmentally-friendly ag practices beneficial to consumers and what not). If the motherfuckin' United Nations recognizes that central planning might not always be the way to go, why is the United States reverting to a cross between the WPA and Mao's Great Leap Forward? Matt Welch has an article in the NY Post about the new era of big gummint started with Bush's TARP fiasco:

This isn't about liberal or conservative, Democrat or Republican. A majority oppose Obama's policies because they fly in the face of this country's bedrock values of personal liberty and limited government. Robbing Peter to pay Goldman Sachs does violence to that fundamentally American ethos.

And increasingly, Obama administration policy does violence to European values, as well. The continent has for the last two decades been systematically disengaging national governments from domestic industries. Top officials from Sweden, of all places, complained about Washington's auto bailout, tersely announcing that "The Swedish state is not prepared to own car factories."

It's complete arrogance that any politician can manipulate the economy as efficiently and productively of the free market. John Stossel makes the point with health care that the free market is a representation of the wills, needs, and capacities of billions of people around the world, and what centrally-planned bureaucracy is going to be able to do that more efficiently? Certainly, I would argue that there needs to be government-run, central-planning models for institutions like the military (because of its unique purpose), but this whole concept that governments need to intervene in failing markets has proved a colossal dud these last 10 months.

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Even though Massachusetts' near-universal health coverage is bankrupting the state by the second, liberal types are making the rounds saying that government-run health programs (like the VA) are actually swell. I guess veterans-related scandals were only the meme of the day when Bush was president. You can take a look at Joe's comment if you want to see what a pain in the ass it is to deal with the VA, and you can read this IBD editorial on how much this monstrous Obamacare is going to cost:

Few of the plans now coming out of Congress will save anything, says the CBO's current chief, Douglas Elmendorf. In fact, he says, they'll lead to substantially higher costs in the future — costs that will be "unsustainable."

As it is, estimates for reforming health care range from $1 trillion to $3.6 trillion. Much will be spent on subsidies to make a so-called public option more attractive to consumers than private plans.

To pay for it, the president has suggested about $600 billion in new taxes, meaning that $500 billion to $2.1 trillion in new health care spending over the next decade will be unfunded. This could push up the nation's already soaring deficit, expected to reach $10 trillion through 2019 without health care reform. Massive new tax hikes will probably be needed to close the gap.

If the Obama administration is going to throw taxpayer money around, you'd think they would wait at least a year to blow another trillion dollars. After a while, these trillions really start adding up.

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Might as well yuck it up before the Chinese pull the plug on us and turn America into Barter Town because the dollar ain't worth a shit. From Sun-Sentinel:

The Treasury Department said Monday that the deficit in June totaled $94.3 billion, pushing the total since the budget year started in October to nearly $1.1 trillion.

The deficit has been propelled by the huge sum the government has spent to combat the recession and financial crisis, combined with a sharp decline in tax revenues. Paying for wars in Iraq and Afghanistan also is a major factor.

The country's soaring deficits are making Chinese and other foreign buyers of U.S. debt nervous, which could make them reluctant lenders down the road. It could force the Treasury Department to pay higher interest rates to make U.S. debt attractive longer-term.

"These are mind boggling numbers," said Sung Won Sohn, an economist at the Smith School of Business at California State University. "Our foreign investors from China and elsewhere are starting to have concerns about not only the value of the dollar but how safe their investments will be in the long run."

It seems Obama's team had too many rosy predictions about an excessively shitty economy. Well, at least bailed-out Goldman Sachs is having a good fiscal year.

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Only in the twilight zone of Obamanomics is the ghastly size of the stimulus not a lot of cash, which has to-date been about as successful as T. Boone Pickens' plan to conquer the Texas Panhandle with wind turbines. Paul Krugman thinks there's a conspiracy to sabotage plans for more money being shoveled at special interest groups, and HuffPo thinks limiting federal spending is akin to incest. A simple meme of the frightening red ink the CBO predicts has been a mainstay for bloggers in the days of Obama, but I think Leskoization video from Reason needs some more air time:

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Woohoo, Less Traffic

Even though we'll probably be resorting to cannibalism by the end of Obama's first term, at least the freeways remain empty as people sit at home unemployed eating pork and beans. From AP:

The Los Angeles metropolitan area, with its car pool lanes and emerging mass transit, shed two hours of wait-time in rush-hour traffic. Still, its sprawling freeway system remained the nation's worst for congestion, with drivers wasting an average of 70 hours in 2007.

Other large metro areas showing congestion declines were San Francisco, Atlanta, Chicago, Dallas-Fort Worth and Seattle.

In contrast, the Washington, D.C., area had more bumper-to-bumper traffic, surpassing Atlanta as the second worst in congestion. With the Washington regional economy faring relatively well, drivers heading to work in the nation's capital and surrounding suburbs wasted 62 hours in rush-hour traffic in 2007, up from 59 hours.

Of course DC traffic remains a mess of commuters which can be explained by John Dillinger's famous quote of "because that's where the money is!". Never accuse the sleazebags in our federal government of misunderstanding their priorities of lavishing themselves with taxpayer-funded goodies while everyone else is in the poor house.

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Due to your 401K going poof and a potential worldwide economic collapse, large banking conglomerates are rightfully concerned about that you don't feel enough sympathy for them. That's why they've hired a bunch of skeezy politico types to boost their public image. Bloomberg has the scoop:

The internal papers call for using regional securities firms, many of which have escaped notoriety in the financial crisis, to push the industry’s message with their local members of Congress. The plan notes that brokers across the country can also be used.

“The foot power of the private client group has proven to be effective in blunting populist messages in the past,” said board member Paul Purcell, chief executive officer of Milwaukee investment firm Robert W. Baird & Co., according to the minutes of one meeting.

Not sure why they feel like they have to lobby congress to be on their side, because both a Democrat and a Republican administration have printed enough money to make Mugabe blush in order to save these bumbling boneheads... and we just sat back and took it! Maybe they're trying for a more aggressive approach whereby anyone who speaks ill of the cronyism between DC and Wall Street gets put on some DHS watchlist.

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One Pack of Marlboros, Please

More great economic news: The Chinese are refusing to buy US bonds like they were old VHS tapes of Night Court. From Breitbart:

A decision by China to reduce its US Treasury holdings suggests concern about the US attitude towards its economic woes, Chinese economists were quoted as saying in state media Wednesday.

The remarks, coming after US data showed a modest decline in Chinese investments in US government bonds, were in contrast to an earlier statement in Beijing which had said the recent sell-off was a routine transaction.

"China is implying to the US, more or less, that it should adopt a more pragmatic and responsible attitude to maintain the stability of the dollar," He Maochun, a political scientist at Tsinghua University, told the Global Times.

According to US Treasury data issued Monday, Beijing owned 763.5 billion dollars in US securities in April, down from 767.9 billion dollars in March.

It was the first month since June 2008 that Beijing failed to purchase more US T-bills.

You really can't appreciate how much it sucks to have a crappy dollar until you're in a foreign country, where a coup could spring up at any time, and you see your dollars dropping more and more every goddamn day. But, hey, at least the President is "losing sleep" over this whole reckless spending thing.

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Because Children are the Future

You're doing a heckuva job, Obama. Recent unemployment figures show that we are turning into a nation of hobos, and the reasons behind the economic collapse are, I admit, not all the fault of President O. But we could at least demand that he stop blowing smoke up our asses with hokey numbers from his spendulus plan.

Innocent Bystanders has some analysis on how the figures originally predicted by the administration were way too optimistic. See graph below to further your anxiety:
Now, to silence any criticism that maybe this monstrous $787B program was a lousy idea, Obama says that 600,000 jobs are going to be created this summer. Unfortunately, that number factors in teenage gigs working at the DQ and goofing off behind the cash register at the local Goodwill. CNS explains:

The biggest of the youth jobs program is in Cleveland, where 7,000 teens will be employed to work summer jobs through a $6.4 million program funded by stimulus money. About $3 million went to support 2,500 summer teen jobs in Riverside County, Calif., according to the report. Another 200 California teens will get summer jobs as a result of a $465,000 stimulus grant to Yuba County.

The Desert Sun out of Palm Springs has some more specifics on what kind of jobs the stimulus money created: minimum-wage jobs at state-run buildings so teenagers aren't making trouble during their summer break. Not that teenage employment is a bad thing, but using it to factor into the narrative about economic recovery for the American middle class is a bit sheisty.

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Even though Obama has said we've "stepped back from the brink", unemployment statistics suggest that 1) there ain't gonna be a Christmas this year, and 2) we might be eating Soylent Green by next year. But there's one state in the union where people aren't living like a bunch of hobos (which unfortunately is home to less than 1% of the population). Despite a flood in Fargo earlier this year, North Dakota continues to do well. WSJ reports their secret:

High prices help North Dakota in myriad ways. State revenues rise thanks to taxes on oil production and extraction. Energy-industry workers and farmers pay more in income taxes and spend more, boosting sales-tax receipts.

Chiefly because of the commodities boom, North Dakota had the fastest-growing economy in the nation last year, as the state's gross domestic product increased 7.3%, the Commerce Department said Tuesday.

The state also missed much of the bubble in housing prices and dubious lending practices that bedeviled much of the nation, so it isn't struggling as much with foreclosures.

Republican Gov. John Hoeven likes to credit his administration's efforts to diversify the economy, including fostering "value-added" agriculture, such as food-processing plants, and alternative-energy production, from wind to ethanol and other biofuels. "Jobs and opportunities change, and we have to be developing these new industry areas," he said.

Wow! A state that actually supplies something people want to buy instead of cranking out legions of overpaid, grad-school, think-tank weenies writing about "Synergy Approaches to Social Capital". What a concept.

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You knew someone was going to make this video sooner or later. It's so accurate.

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Seeing how the state of Michigan is heavily invested both financially and emotionally with the auto industry, and the Governor had to go begging for cash from Obama like a schmuck to keep people employed, you'd think it couldn't get any lower for the Great Lakes state than having the former #1 company in the world go bust. Well, not unless the new person in charge of GM is some law-school dropout/pizzafaced-politico dweeb who has probably never worked a day in his life. From New York Times:

But that, in short, is the job description for Brian Deese, a not-quite graduate of Yale Law School who had never set foot in an automotive assembly plant until he took on his nearly unseen role in remaking the American automotive industry. Nor, for that matter, had he given much thought to what ailed an industry that had been in decline ever since he was born. A bit laconic and looking every bit the just-out-of-graduate-school student adjusting to life in the West Wing — “he’s got this beard that appears and disappears,” says Steven Rattner, one of the leaders of President Obama’s automotive task force — Mr. Deese was thrown into the auto industry’s maelstrom as soon the election-night parties ended.

Yeah! I'm sure the thousands of newly unemployed are breathing a sigh of relief that some no-experience hipster is taking charge. God bless our political system.

GM said that they have sold Hummer to an "undisclosed buyer". Maybe it's to this Deese guy so he can have his buddies chauffeured to some party in Brooklyn where none of us are invited.

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Well you can't really blame our Chinese slumlords for being a bit sketchy about giving us more money to live beyond our means. From BBC:

Ahead of meetings with President Hu Jintao and Premier Wen Jiabao, he said the US and China must work together to fix the global economic system.

Mr Geithner said the US would move swiftly to get its debt under control.

In a speech at Beijing University at the start of his two-day visit, Mr Geithner reassured his Chinese hosts that they need not worry about the estimated $770bn (£475bn) they have invested in US treasuries, a class of US government debt.

"Chinese financial assets are very safe," he said, drawing laughter from the audience.

Yup, with this and the GM bankruptcy, the economic good news just keeps on coming. On a totally related note, Paul Krugman has an article today about how Reagan caused massive consumer and government debt. Although, he seems totally cool with it when a Democrat runs up massive government debt. Go figure.

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