• comment on a post Frameshop: Five Toxic Right Wing Lies over 2 years ago

    Here's another example of how confused Americans are:  

    Thanks to Decades of Conservative Spin, Americans Are Hopelessly Confused About Taxes, Spending and the Deficit

  • Operator Error I'm sure. There's some damned glitch in my cursor that I can't fix. It keeps jumping back and forth between single click and double click. Sorry about the double post.
  • Few Americans are aware of how serious the threat to the global economy is that The Boner and the Republican party are playing brinkmanship with. I admit that I only had a fuzzy idea of just how critical refusing to raise the debt ceiling was until i ran across this article at Counterpunch: Is This the End of the Road?: Countdown to Default.

      This is the big fuzzy picture:

    If negotiations break-down and policymakers aren't able to reconcile their differences by early August, then the big steel door on the Treasury vault will slam shut, government payments will stop, and the United States of America will default.

    No one expects that to happen. The US has never defaulted on its debt and it's not going to now. But, guess what, it really doesn't matter, because by the time congress agrees to a deal, the damage will have already been done. You see, foreign banks and financial institutions don't base their investment decisions on what actually happens, but what they "think" will happen. So, if the political stalemate continues, investors will get increasingly nervous and move their money out of US Treasuries and into something else. And, that WILL happen because, every day that goes by, the uncertainty builds and investors grow more apprehensive.

    The author, Mike Whitney, quotes some serious questions and specific consequences that either individually, let alone collectively, threaten not only America's economic recovery, but global economic chaos as well:

    "Even a brief default on Treasury debt would be unprecedented, with widespread systemic ramifications. Would banks around the world have to classify Treasury holdings as non-performing? Would money-market mutual funds break the buck? Would all federal entities lose their AAA-credit rating? Would the Federal Deposit Insurance Corporation's ability to backstop the nation's banks come into question? Would foreign central banks start to shift out of dollars?....

    The consequences of defaulting on other obligations should not be minimized, either. The federal government now has to borrow about 40 cents of every dollar it spends. A prolonged inability to meet 40% of its obligations would sow economic disarray, trigger litigation, and eventually raise doubts about its ability to meet any obligations." ("The debt ceiling and default", The Economist)

    Here's a warning from a managing director at JP Morgan Chase:

    "First, foreign investors, who hold nearly half of outstanding Treasury debt, could reduce their purchases of Treasuries on a permanent basis, and potentially even sell some of their existing holdings.....

    Second, a default by the U.S. Treasury, or even an extended delay in raising the debt ceiling, could lead to a downgrade of the U.S. sovereign credit rating......

    Third, the financial crisis.... could trigger a run on money market funds, as was the case in September 2008 after the Lehman failure....

    Fourth, a Treasury default could severely disrupt the $4 trillion Treasury financing market, which could sharply raise borrowing rates for some market participants and possibly lead to another acute deleveraging event....

    Fifth, the rise in borrowing costs and contraction of credit that would occur as a result of this deleveraging event would have damaging consequences for the still-fragile recovery of our economy....."

    Wall Street hyperbole?  It sounds like some pretty realistic economic analysis to me. Follow the link for one of the clearest, plain English explanations of the dire consequences that could result even from continued delay, let alone actual default. 

     

     

     

  • Few Americans are aware of how serious the threat to the global economy is that The Boner and the Republican party are playing brinkmanship with. I admit that I only had a fuzzy idea of just how critical refusing to raise the debt ceiling was until i ran across this article at Counterpunch: Is This the End of the Road?: Countdown to Default.

      This is the big fuzzy picture:

    If negotiations break-down and policymakers aren't able to reconcile their differences by early August, then the big steel door on the Treasury vault will slam shut, government payments will stop, and the United States of America will default.

    No one expects that to happen. The US has never defaulted on its debt and it's not going to now. But, guess what, it really doesn't matter, because by the time congress agrees to a deal, the damage will have already been done. You see, foreign banks and financial institutions don't base their investment decisions on what actually happens, but what they "think" will happen. So, if the political stalemate continues, investors will get increasingly nervous and move their money out of US Treasuries and into something else. And, that WILL happen because, every day that goes by, the uncertainty builds and investors grow more apprehensive.

    The author, Mike Whitney, quotes some serious questions and specific consequences that either individually, let alone collectively, threaten not only America's economic recovery, but global economic chaos as well:

    "Even a brief default on Treasury debt would be unprecedented, with widespread systemic ramifications. Would banks around the world have to classify Treasury holdings as non-performing? Would money-market mutual funds break the buck? Would all federal entities lose their AAA-credit rating? Would the Federal Deposit Insurance Corporation's ability to backstop the nation's banks come into question? Would foreign central banks start to shift out of dollars?....

    The consequences of defaulting on other obligations should not be minimized, either. The federal government now has to borrow about 40 cents of every dollar it spends. A prolonged inability to meet 40% of its obligations would sow economic disarray, trigger litigation, and eventually raise doubts about its ability to meet any obligations." ("The debt ceiling and default", The Economist)

    Here's a warning from a managing director at JP Morgan Chase:

    "First, foreign investors, who hold nearly half of outstanding Treasury debt, could reduce their purchases of Treasuries on a permanent basis, and potentially even sell some of their existing holdings.....

    Second, a default by the U.S. Treasury, or even an extended delay in raising the debt ceiling, could lead to a downgrade of the U.S. sovereign credit rating......

    Third, the financial crisis.... could trigger a run on money market funds, as was the case in September 2008 after the Lehman failure....

    Fourth, a Treasury default could severely disrupt the $4 trillion Treasury financing market, which could sharply raise borrowing rates for some market participants and possibly lead to another acute deleveraging event....

    Fifth, the rise in borrowing costs and contraction of credit that would occur as a result of this deleveraging event would have damaging consequences for the still-fragile recovery of our economy....."

    Wall Street hyperbole?  It sounds like some pretty realistic economic analysis to me. Follow the link for one of the clearest, plain English explanations of the dire consequences that could result even from continued delay, let alone actual default. 

     

     

     

  • comment on a post Dirty Money for Dirty Laws over 2 years ago

    Here's more, as if it were even necessary, from Common Dreams:  How Does Big Oil Gouge Us? Let Us Count The Ways

    2.  They use American research, infrastructure, and national security to make record profits. ExxonMobil, BP, Shell, Chevron, and ConocoPhillips realized a combined 42% increase in profits in the first quarter of 2011. Together, the five biggest oil companies made almost $1 trillion in profits over the past decade.  

    3. Goldman Sachs noted that speculation on oil prices is causing the price at the pump to go up. But according to the Huffington Post, the resulting oil company profits "are not finding their way back into the communities from which they came; are not being used to create more jobs; and are not being invested in new equipment and exploration." Instead, the money is going to dividends and stock buybacks. "They're basically enriching themselves.

    That's just for starters. Of course, Big Oil Republicans and Dems are going to continue having huge warchests and the DLC will continue to assist corporate Dems against progressive Dems in primaries.

      Any idea how we stem the tide? Beats the hell out of me.

     

  • comment on a post The Chronicles of Barak over 2 years ago

    Either way, the Daleys so loved Obama that they dipped the child in the Kelly green waters of the Chicago River on St. Patrick's Day, hoping to make him immortal The Chicago Way.

     

  • comment on a post Obama Wan Kenobi over 2 years ago

    Wish I could remember where the comment was that I stole  this title from

  • Pat Buchanan and The Donald stole this B.S. from Jesse Helms.

     

  • Mickey Kause stole this B.S. from Pat Buchanan

  • comment on a post Obama: Politically Astute or Big Wienie?? over 2 years ago

    Yeah. Right. We've heard that before: 

    Obama's birth certificate: Final Chapter

    This time they really, really mean it!

     

     

  • comment on a post Obama's Stealth Political Operative over 2 years ago

    <p>The infinitesimal number of Americans who have heard of Mickey Kaus conclusively proves that Mick is a deep cover operative for the VLWC.</p>
    Balloon Juice steals the story from Matt Y.

    Cost doesn't go into why Obama managed to get to the top of politics  without being all that good at it. The answer is distressingly obvious:  Obama is the biggest affirmative action baby in history.

    Only 329 comments so far.

    Balloon Juice asks: Why is Kausfiles still a TPM approved site?

     

     


     

    Only 329 comments so far

  • comment on a post Obama's Stealth Political Operative over 2 years ago

    The Best of the Birthers

  • comment on a post Obama's Stealth Political Operative over 2 years ago

    Meet Orly Taitz, Queen Bee of People Obsessed With Barack Obama's Birth Certificate (courtesy of Orly's home town OC Weekly)

  • Very strange nanobot. How did you do that

  • comment on a post Obama: Politically Astute or Big Wienie?? over 2 years ago

    <p>Online Time article dated for the June 12th issue:</p>
    <p><a href="http://www.time.com/time/politics/article/0,8599,1813663,00.html">Will Obama's Anti-Rumor Plan Work?</a></p>
    <p>Obama had to know about this article. Does anyone know when this issue hits the news stands?</p>
    <p>Is Obama as smart as everyone used to wish he was?</p>
    <p>&nbsp;</p>

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