Congress at the midnight hour has passed a deal to re-open the government and raise the debt ceiling, yet this deal is amazingly short lived. The political theater has been unbelievable and once again the problem with America's economy is completely irresponsible politics versus external events. Instead of focusing in on the responsible thing, which of course is to not destroy the United States and global economy, the press is now having a field day with who blinked first in this very dangerous game of political chicken.
In This Crisis It's Not Stupidity, It's the Money: Three Relevant Laws
There are three basic laws about discussion, especially political discussion, that are useful in the contentious government situation we have today. The third of these laws is especially relevant because it warns us that what is happening in Congress is not a passing aberration, but in fact a threat to democracy in our country.
When did it become OK to play political Calvin ball with the faith and good credit of the United States of America? Such are the hidden whispers that the debt ceiling will be used as yet another gun to the head of America, a hostage taking bargaining chip, in spite of the claims to the contrary.
Don't like the trade deficit, low GDP and the public outrage over the offshore outsourcing? Change the accounting method to make it go away! Such is the agenda of government statisticians it appears. How they are going to incorporate statistical lies into national accounts is shocking. Production location no longer matters, the thing that will count is ownership of the final product.
The opposition to Larry Summers as Federal Reserve Chair is growing. There is new petition demanding Obama not appoint Larry Summers and already has almost 100,000 signatures. Yet that doesn't seem to phase President Obama who some say seems bound and determined to nominate Summers to the post.
President Obama gave a speech on winding down Freddie Mac and Fannie Mae, the GSEs often blamed for the housing crisis and a darling of conservative ire. Government sponsored enterprises, or GSEs buy up mortgages from private lenders and the theory is to loosen up funds to stir additional lending.
Welcome to this week in economic outrage. Every day there are thousands of economic horror stories where one just shakes their head in disbelief at the incessant injustice. To combat the information overload, we give you a financial follies reader's digest and how those in power could care less about any of it.
In a speech last Wednesday President Obama said, "Over the past 40 months, our businesses have created 7.2 million new jobs. This year, we are off to our strongest private-sector job growth since 1999."
But is that really true? And one also has to wonder...just what kind of jobs have those businesses been creating over the past 40 months? It's not always about the quantity, but the quality as well.
Surprise, when tax revenues increase the deficit goes down. Such was the news of a new CBO update on the federal budget deficit.
If the current laws that govern federal taxes and spending do not change, the budget deficit will shrink this year to $642 billion, CBO estimates, the smallest shortfall since 2008.
As the jobs crisis continues industry and government collude together on policies and agendas which won't help the nation. Here are some of their latest outrageous activities.
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