Sen. Jim DeMint on the credit downgrade by S&P yesterday including his views of the debt deal, the ‘Super Congress’, Secretary Geithner, the $2 Trillion mistake, and the possibility this was a calculated move by the Obama administration in order to raise taxes. (more…)
I may have mentioned last week that we have gone over the proverbially cliff and have not yet hit the rocks below, and that the ground is coming up fast and that it is really gonna suck when we hit.
The ground is closer:
From the Washington Times:
Government debt to exceed U.S. economy
and this from Bloomberg:
Barack Obama may lose the advantage of low borrowing costs as the U.S. Treasury Department says what it pays to service the national debt is poised to triple amid record budget deficits.
Interest expense will rise to 3.1 percent of gross domestic product by 2016, from 1.3 percent in 2010 with the government forecast to run cumulative deficits of more than $4 trillion through the end of 2015, according to page 23 of a 24-page presentation made to a 13-member committee of bond dealers and investors that meet quarterly with Treasury officials.
The amount of marketable U.S. government debt outstanding has risen to $8.96 trillion from $5.8 trillion at the end of 2008, according to the Treasury Department. Debt-service costs will climb to 82 percent of the $757 billion shortfall projected for 2016 from about 12 percent in last year’s deficit, according to the budget projections.
Forecasts of higher interest expenses raises the pressure on Obama to plan for trimming the deficit. The President, who has called for a five-year freeze on discretionary spending other than national security, is scheduled to release his proposed fiscal 2012 budget today as his administration and Congress negotiate boosting the $14.3 trillion debt ceiling.
What is currently happening with the devaluation of the dollar and what you need to know to survive the crash starting with the United States government being the biggest debtor in the world, US dollars (Federal Reserve Notes) being the world’s reserve currency and what happens when other countries stop accepting those dollars (hint: oil skyrockets), how the entire world is moving away from the dollar as the world’s reserve currency – and what that means exactly for us poor slobs. Mr. Stansberry also lays out what you need to do to protect what little wealth you may have left. (Disclaimer: this video is actually an advertisement for a subscription newsletter – sign up at your own risk. I am posting it for educational purposes as information contained is pertinent. Do your own due diligence on Mr. Stansberry’s company.)
Many of my readers have watched this one hour and sixteen minute video, but the newly minted awakees have not. I urge everyone to find the time to watch this video in it’s entirety! You will learn economic history that you may not have known and useful (unreported tidbits) like many new currencies being traded inside the United States like the Berkshares being traded in the Berkshire region of Massachusetts.
Porter Stansberry – The End Of America:
A small excerpt:
Let me back up, and show you in the simplest terms possible, what is going on, why I am so concerned, and what I believe will happen in the next twelve months.
In short, I believe that we as Americans are about to see a major, major collapse in our national monetary system, and our normal way of life.
Basically, for many years now, our government has been borrowing so much money (very often using short-term loans), that very soon, we will no longer be able to afford even the interest on these loans.
I say these things as an expert in accounting and financial research.
You may not think things are THAT BAD in the US economy, but consider this simple fact from the National Inflation Association:
Even if all US citizens were taxed at 100% of their incomes, it would still not be enough to balance the federal budget. We’d still have to borrow money just to maintain the status quo.
Ron Paul’s ‘Straight Talk’, 2.14.2011
The Fed Has Failed: Money Printing Can’t Create Actual Jobs
Neil Barofsky isn’t making any friends over at Treasury right now, considering he is slamming their changing methodology (without telling the American public) that make the losses at AIG looks significantly less than what they were 6 months ago.
Is anybody surprised? No; didn’t think so. I know I will have died and gone to heaven when the Federal Reserve no longer exists and the big wall street banks aren’t telling our government how it’s going to be anymore.
Treasury Hid A.I.G. Loss, Report Says
The United States Treasury concealed $40 billion in likely taxpayer losses on the bailout of the American International Group earlier this month, when it abandoned its usual method for valuing investments, according to a report by the special inspector general for the Troubled Asset Relief Program.
“In our view, this is a significant failure in their transparency,” said Neil M. Barofsky, the inspector general, in an interview on Monday.
In early October, the Treasury issued a report predicting that the taxpayers would ultimately lose just $5 billion on their investment in A.I.G., a remarkable outcome, since the insurance company was extended $182 billion in taxpayer money in the early months of its rescue. The prediction of a modest loss, widely reported as A.I.G., the Federal Reserve and the Treasury rushed to complete an exit plan, contrasted with an earlier prediction by the Treasury that the taxpayers would lose $45 billion.
And as an added bonus, Neil Cavuto covers the story of the Treasury looking for employees that know their way around the Freedom Of Information Act specifics. How’s that for transparency…? The Judge weighs in.
Judge Napolitano – Treasury Dept. Secrets
Neil Cavuto interviews Donald Trump on ‘Your World’ about TurboTax Timmie’s trip to China in an attempt to ‘smooth over’ the currency problems that are occurring. Donald Trump has some strong words about our country’s representatives and what the leaders in China are doing when they see Timmie coming through the door. Mr. Trump also covers how we are stuck in a vise between China and OPEC.
“Castro doesn’t have those powers.”
The new financial reform bill coming through has arbitrary rules about the Treasury Secretary deciding who is ‘too big to fail’ and then seizing the company, firing the management, and tell the shareholders to take a hike. Dick Morris explains it well, and the possible fallout for Republicans’ political donations because of it.
WASHINGTON— Timothy Geithner’s role in calming the financial crisis landed him the coveted job of Treasury secretary last year. That same résumé is now dogging him.
In his next test, Mr. Geithner will find out this week how lawmakers are treating one of his main goals—revamping the nation’s financial regulations—when Senate Banking Committee Chairman Chris Dodd unveils his new bill. In Washington, where perception can take on the status of fact, the political woes facing Mr. Geithner are diminishing his authority.
To boost his image, Mr. Geithner is waging a charm offensive. On Friday, he toured a supermarket in Philadelphia with first lady Michelle Obama to showcase efforts to reduce childhood obesity, an unusual event for a Treasury secretary. He demonstrated how a Treasury program offering tax credits in low-income communities can bring in businesses selling more nutritious food.
I’m still thinking that maybe, just maybe, the Secretary of the Treasurer should have some banking experience. Remember this? (Like not being able to pay his taxes wasn’t bad enough.)
It hasn’t helped that many people incorrectly think Mr. Geithner used to work on Wall Street. Sen. John Kerry made the mistake at a hearing last year. And during an April 2009 hearing of a panel overseeing TARP, Damon Silvers, associate general counsel of the AFL-CIO, made reference to Mr. Geithner’s having “been in banking.”
Mr. Geithner cut him off: “Actually, I have never actually been in banking. I have only been in public service.”
That should have been anybody’s first clue that Geithner isn’t qualified for anything other than pushing papers around some lowly governmental desk, and NOT being in charge of the Treasury and IRS.
“Well, a long time ago. A long time.”
“Investment banking I meant.”
“Never investment banking. Spent my entire life in public service.”
“Well, all right,” Mr. Silvers conceded.
When asked about the exchange, Mr. Silvers says he simply made a mistake.
255 days to go…
Remember Paulson predicting an economic crash of biblical proportions if the government did not bail out the banks? TurboTax Timmie is warning that the markets aren’t going to like a Bernanke rejection by the Senate. I know you are sick to death of being threatened by government officials, and it is only adding to the anger and frustration in the country. Tim seems to think you are mad because of the “damage this crisis caused”. I would wager you are more upset with how the crisis has been handled since Paulson went to Bush’s WH with 3 pages and threats.
If you haven’t taken the time to read Karl Denninger’s take on warnings leveled by Robert Gibbs on FoxNews Sunday, you absolutely must see the info he has about ‘financial terrorism’.
And now, TurboTax Timmie laying the groundwork. (As if Obama’s new bank tax wasn’t hard enough on the markets last week.)
Treasury Secretary Timothy Geithner warned that the financial markets would view a Senate rejection of Ben Bernanke’s renomination as “very troubling” but said he’s sure the embattled Federal Reserve chairman will prevail.
“We’re very confident that the chairman will be reconfirmed by the Senate, and we think it’s very important he be reconfirmed by the Senate,” Geithner said Friday in an interview at the Treasury for POLITICO’s new video series, “Inside Obama’s Washington,” debuting Monday.
“He’s done a remarkable job of helping steer this economy out of the great recession. And I think he’ll play a very important role in helping in the success of our efforts to try to make sure we are bringing this economy back to durable growth.”
Asked about possible market reaction to a defeat, Geithner said: “I think the markets would view that as a very troubling thing to the economy as a whole. But, as I said, I don’t think they should be uncertain. I think they should be confident because we are very confident he will be reconfirmed.”
Bernanke is having such a rough time, Geithner suggested, because the country is “in a moment where people are incredibly angry and frustrated by the damage this crisis caused.”