March Madness: Obama Formerly Orders ‘Deeply Destructive’ Cuts
President Barack Obama formally ordered broad cuts in government spending on Friday night after he and congressional Republicans failed to reach a deal to avert automatic reductions that could dampen economic growth and curb military readiness.
As the United States staggered into another fiscal crisis, the White House predicted that the spending cuts triggered by the inability of Obama and lawmakers to forge a [...]
March 1st, 2013
Last month President Obama made it a point to outline the ever stronger state of our Union.
“Our housing market is healing, our stock market is rebounding, and consumers, patients, and homeowners enjoy stronger protections than ever before,” said Obama of a US economy that, according to the President’s numbers, has added six million new jobs over the last decade.
But as budget woes hit cities and states across America, and [...]
February 25th, 2013
They’d have us believe that happy days are here again. And, if your only source of information for economic news is the mainstream media and their talking heads, then in all likelihood you’ve bought into the hype about an economy on the rebound, consumers being more confident, housing prices in recovery and a government that’s soon to resolve America’s fiscal woes.
Nothing could be further from the truth. We are [...]
February 20, 2013
Last year was a year of pronounced economic uncertainty for many countries around the world and for most of them this trend will linger into 2013, according to the new report.
In Europe, a fiscal crisis continues to kindle doubt about the survival of the Euro, creating uncertainty that is casting a shadow on real economic performance in 2013, said the first-quarter edition of Deloitte’s Global Economic Outlook.
It also [...]
Top general of Delta force speaks on the planned economic collapse and martial law
Lt. General W.G. Boykin (ret.) warns about the Marxist insurgency in the US government:
KGB defector Yuri Bezmenov’s shockingly prophetic warning from 29 years ago, describing what’s happening in America today almost to the letter (A MUST WATCH):
DHS INSIDER: “There won’t be any meaningful deal about the fiscal crisis. This is planned … The coming collapse of the [...]
Washington’s gamesmanship over the fiscal cliff raises a critical question: Does the US have budget rules and processes that are adequate for the nation’s looming crisis?
It does not — but today’s 100th anniversary of the 16th amendment to the US Constitution offers a reminder that the republic was designed to adapt to such challenges. Read more
The nation’s long-term fiscal outlook hasn’t significantly improved following the recent agreement between Congress and the White House over tax and spending issues, according to a new analysis.
The “fiscal cliff” deal, combined with the debt-limit agreement of August 2011, only slightly delays the United States reaching debt-to-gross domestic product levels that would damage the economy and risk another fiscal crisis, according to a report from the Peter G. Peterson Foundation released on Tuesday.
The agreement [...]
By Dr. Constantin Gurdgiev
One theme I’ve been tracking over some time now is the longer-term state liabilities.
Here’s a note from Fitch on the matter:
“Without the implementation of mitigating reforms the median country analysed in our new report today is projected to see its budget worsen by 0.6% of GDP by 2020 and 4.9% of GDP by 2050. Consequently, many of these countries would experience escalating government debt-to-GDP ratios, with the [...]
Washington’s Democratic and Republican power brokers have sent the message to the nation that going over the fiscal cliff is a worst-case scenario. But they’re not acting that way, not at all.
Instead, many of them have calculated that it’s better to go over the cliff — at least temporarily — than swallow a raw deal.
For many Republicans, a cliff dive means blaming President Barack Obama for a big tax hike in [...]
Forget the fiscal crisis and the automatic budget cuts. Come Jan. 1, there is a threat that milk prices could rise to $6 to $8 a gallon if Congress does not pass a new farm bill that amends farm policy dating back to the Truman presidency.
Lost in the political standoff between the Obama administration and Congressional Republicans over the budget is a virtually forgotten impasse over a farm bill that covers billions [...]
WASHINGTON — President Obama delivered to Speaker John A. Boehner a new offer on Monday to resolve the pending fiscal crisis, a deal that would raise revenues by $1.2 trillion over the next decade but keep in place the Bush-era tax rates for any household with earnings below $400,000.
The offer is close to a plan proposed by the speaker on Friday, and both sides expressed confidence that they were closing in [...]
December 4th, 2012
Amid a worsening fiscal crisis, a crumbling economy, and the destruction of over 40% of America’s wealth in just the last few years, it should be quite clear that this is no ordinary recession. In fact, with progressively dwindling job opportunities, a long-term downward trend in real estate prices, and the near doubling of participation in emergency benefits programs like food stamps and disability, one could make the argument that the United States is [...]
New York Rep. Peter King and Sen. Lindsey Graham said Sunday they would break the pledge and accept tax changes to generate more revenue to curb the trillion-dollar federal deficit.
Their statements followed a similar one Thursday by Georgia Republican Sen. Saxby Chambliss.
“I agree entirely with Saxby Chambliss,” King said on NBC’s “Meet the Press.” “A pledge you signed 20 years ago, 18 years ago, is for that Congress. … The [...]
A top Republican senator is casting aside an anti-tax pledge he signed, saying that solving the country’s looming fiscal crisis is more important than honoring the decades-old pact.
Sen. Saxby Chambliss, R-Ga., broke ranks with other conservatives Wednesday when he made the remarks to a local television station. Chambliss is a member of the Gang of Six, a bipartisan group of senators tasked with finding a solution to the country’s fiscal [...]
November 13th, 2012
Do you think the government will be there for you in the middle of a crisis?
If they can’t handle the emergency response after a Category 1 hurricane, what will this country look like when the economic and fiscal crisis comes to a head?
What happens if the US dollar comes under attack from foreign creditors who choose to no longer accept it in trade? How will we as [...]
Earlier today we casually wondered whether the US stands to lose more by supporting China or Japan in their escalating diplomatic spat, considering the threat of a US Treasury sell off is certainly not negligible, a dilemma complicated by the fact that as today’s TIC data indicated both nations own almost the same amount of US paper, just over $1.1 trillion. In a stunning turn of events, it appears that China has [...]
Like the country we have been privileged to serve, we remain fundamentally optimistic about the future. We have endured a financial collapse, a protracted recession, a fiscal crisis that threatens the creditworthiness of the U.S. government, and polarized politics that makes it ever more difficult to govern. Pundits regularly remind us how other great powers, from Rome to Great Britain, all fell into eclipse.
We reject such pessimism. The United States remains [...]
LONDON (MarketWatch) — The Bank of England has cut its forecasts for growth and inflation in the U.K. economy, giving investors a signal that the bank could inject further stimulus in the coming months.
The U.K.’s central bank said in its quarterly inflation report that the damaging economic effects of the financial crisis could persist longer than previously thought, while inflation is likely to fall below target from mid-2013, remaining [...]
By Howard Gold
NEW YORK (MarketWatch) — After a rocky spring, we’ve had two consecutive months of gains in the Standard & Poor’s 500 index.
And some pros are looking for a strong fall and are hoping the Federal Reserve rides to the rescue with more “quantitative easing” at its September meeting.
But just when you thought it was safe to get back into the market, here comes Gary [...]
SAN BERNARDINO (CBS/AP) – The consequences of the city’s fiscal crisis took a trashy turn during a hearing Monday night when San Bernardino officials noted garbage pick-up was among the obligations they might not be able to afford after turning their government into a cash-only operation.
The City Council voted Monday to delay the vote until Wednesday to avoid mediation and head straight to federal bankruptcy. The council previously had voted to file [...]
“The ability of the states to meet their obligations to public employees, to creditors and most critically to the education and well-being of their citizens is threatened,”
China’s Premier Wen Jiabao warned the momentum for a recovery in economic growth isn’t yet in place and that “difficulties” may persist for a while, the official Xinhua News Agency reported.
Even so, the current pace of economic expansion is within the targeted range and government measures to stabilize growth are “bearing fruit,” the premier said during an inspection tour in southwest Sichuan province, according to a Chinese- language report from [...]
TOKYO – Japan’s government could run out of money by the end of October, halting all state spending including salaries, pensions and unemployment benefits, because of a standoff in parliament that has blocked a bill to finance the deficit.
The deficit financing bill, which would allow the government to sell bonds needed to fund almost half of the budget, has languished in parliament as the ruling Democratic Party tussles with opposition [...]
Between ‘Twist+’, his belief that Germany will ‘blink’ leaving any eurozone breakup/exit unlikely this year, and confidence that the US (Fed) and China (fiscal and monetary) will attempt once again to pump things up, Bob Janjuah (of Nomura) expect to see a risk-on phase that lifts the S&P – possibly climbing the wall of worry back up to the 1400s by late July or early August. His stop-loss (which would be very [...]
Jun 7, 2012 4:46pm
Fed Chairman Ben Bernanke Warns Congress on ‘Taxmaggedon’: ‘If You All Go on Vacation, It’s Still Going to Happen’
The Federal Reserve Board Chairman had a stern warning today for Congress: “Taxmaggedon” is real, it’s coming and only lawmakers can save the nation from falling off this rapidly approaching “fiscal cliff.”
“What is particularly striking here is that this is all pre-programmed,” Fed Chairman Ben Bernanke said. “If you [...]
From Zero Hedge:
Three months ago, just when things looked like they were about to turn south, the Fed’s trusty mouthpiece, Jon Hilsenrath, made it clear that the market can stop falling as the Fed was “considering” sterilized QE, or more Twist, something we explained later would be impossible in the current format as the Fed would run out of sub-three-year paper by the end of August.
It did, however, halt the [...]
June 6, 2012
Three months ago, just when things looked like they were about to turn south, the Fed’s trusty mouthpiece, Jon Hilsenrath, made it clear that the market can stop falling as the Fed was “considering” sterilized QE, or more Twist, something we explained later would be impossiblein the current format as the Fed would run out of sub 3 Year paper by the end of August. It did however halt the [...]
The Washington Times
For Congress, the outlines of the pending fiscal crisis are clear: Don’t do a thing, and watch the economy slip into a double-dip recession early next year. Or cancel the looming tax increases and spending cuts, watch the deficit rise, and push the government ever closer to a European-style debt crisis.
That decision was put in stark terms Tuesday by the Congressional Budget Office, which in a new analysis said the [...]
Republican presidential candidate Mitt Romney returned to his economic message on Friday, highlighting a “bridge to nowhere” rebuilt by stimulus money and warning the U.S. economy could suffer a fiscal crisis like California’s if he is not elected in November.
Rising in the polls this week, Romney is eager to follow through by hammering at the White House’s handling of the weak economy.
He used the backdrop of a 1860s-era bridge in [...]
(CNSNews.com) – Federal Reserve Chairman Ben Bernanke said that the current trajectory of the federal budget – marked by large annual deficits – was “clearly unsustainable” and that “serious economic consequences” could result.
“Having a large and increasing level of government debt relative to national income runs the risk of serious economic consequences,” Bernanke told the Senate Budget Committee Tuesday.
“Even the prospect of unsustainable deficits has costs, including an increased possibility of a [...]