China wants a world currency

Much like they have with the euro. And as bad of an idea as it was in Europe it will be even worse if there is only one currency through out the world. But of course the Worlds Smartest Treasury Secretary, Tim Geithner, is open to this ridiculous idea.

Geithner, at the Council on Foreign Relations, said the U.S. is "open" to a headline-grabbing proposal by the governor of the China's central bank, which was widely reported as being a call for a new global currency to replace the dollar, but which Geithner described as more modest and "evolutionary."

"I haven’t read the governor’s proposal. He’s a very thoughtful, very careful distinguished central banker. I generally find him sensible on every issue," Geithner said, saying that however his interpretation of the proposal was to increase the use of International Monetary Fund's special drawing rights -- shares in the body held by its members -- not creating a new currency in the literal sense.

"We’re actually quite open to that suggestion – you should see it as rather evolutionary rather building on the current architecture rather than moving us to global monetary union," he said.

"The only thing concrete I saw was expanding the use of the [special drawing rights]," Geithner said. "Anything he’s thinking about deserves some consideration."

The continued use of the dollar as a reserve currency, he added, "depends..on how effective we are in the United States...at getting our fiscal system back to the point where people judge it as sustainable over time."

And they say the Neo Cons were the ones who wanted the New World Order? Either that or it is Obama's plan to bankrupt the country and start fresh with a world government.

And of course everytime Geithner opens his mouth the dollar drops.

He said increased use of SDRs should be thought of as an “evolutionary” step rather than a step towards “global monetary union”.

The dollar fell 1.3 per cent against the euro as headlines saying “Geithner open to SDR currency” flashed across traders’ screens. With the currency falling, Mr Geithner’s interviewer – Roger Altman, a deputy Treasury secretary in the Clinton administration – gave Mr Geithner the chance to clarify.

Hopefully we can survive these next 4 years until we can vote in a Conservative to fix the messes these big government liberals have created.

Even the bank of England gets it

They are imploring England to stop spending as they can't afford it anymore.

The Governor of the Bank of England stunned Downing Street yesterday by warning against a giveaway Budget next month.

Mervyn King said public finance deficits were too high for big tax cuts or bumper spending increases on April 22.

The extraordinary warning to Gordon Brown not to blow billions on a second 'fiscal stimulus' came perilously close to breaching the convention that the head of the Bank does not question Government policy.

Tories said it blew a hole in Mr Brown's plans for next week's G20 summit in London.

At least someone gets it in England too. Hopefully more people here and around the world start to get it to. The more we spend and print money the more our currencies are going to be devalued and that will just lead to more inflation. I know this has been a common theme here lately, but I just can't help it. We need to start up to these tax and spend politicians and tell them to stop devaluing our money.

Hello Socialism here we come.

Now Obama wants the right take control of any financial firm. This is the problem with our economy now. The government shouldn't be bailing out any company that is failing and they definitely shouldn't be taking control and running any such firm. That is called socialism when the government runs business.

The Obama administration is considering asking Congress to give the Treasury secretary unprecedented powers to initiate the seizure of non-bank financial companies, such as large insurers, investment firms and hedge funds, whose collapse would damage the broader economy, according to an administration document.

The government at present has the authority to seize only banks.

Giving the Treasury secretary authority over a broader range of companies would mark a significant shift from the existing model of financial regulation, which relies on independent agencies that are shielded from the political process. The Treasury secretary, a member of the president's Cabinet, would exercise the new powers in consultation with the White House, the Federal Reserve and other regulators, according to the document.

The administration plans to send legislation to Capitol Hill this week. Sources cautioned that the details, including the Treasury's role, are still in flux.

And the government just can't keep printing money to take over companies. Enough is enough. Our dollar is going to be so under valued soon and we are going to get hyper inflation.

Obama will bankrupt our country

That according to Senator Gregg will happen if Obama gets his budget passed.

But Sen. Judd Gregg of New Hampshire also says President Barack Obama's massive budget proposal will bankrupt the country.

Gregg says he has no regrets in withdrawing his nomination to become commerce secretary. He pulled out after deciding he could not fully back the administration's economic policies.

The senator said Obama's spending plan in the midst of a prolonged recession would leave the next generation with a country too expensive to live in.

While this might be a little over exaggerated I don't think he is far off. If Obama keeps on spending like Ted Kennedy after a drunken all night and continues to print money like it is Monopoly we will face an even worse financial mess. What he is doing now will lead to double digit inflation and unemployment. I'm not sure if Obama just doesn't understand economics but at some point the market will have to correct itself and when it does we will be in a world of hurt.

Inflation here we come

If the Government keeps on printing money and putting it into the economy that is the only thing that can happen. The more Obama prints the more inflation we will have to suffer. So when the Feds decide to put in $1 trillion into the economy by buying Treasury bonds where do you think that money comes from?

The Federal Reserve sharply stepped up its efforts to bolster the economy on Wednesday, announcing that it would pump an extra $1 trillion into the financial system by purchasing Treasury bonds and mortgage securities.

Having already reduced the key interest rate it controls nearly to zero, the central bank has increasingly turned to alternatives like buying securities as a way of getting more dollars into the economy, a tactic that amounts to creating vast new sums of money out of thin air. But the moves on Wednesday were its biggest yet, almost doubling all of the Fed's measures in the last year.

The action makes the Fed a buyer of long-term government bonds rather than the short-term debt that it typically buys and sells to help control the money supply.

The idea was to encourage more economic activity by lowering interest rates, including those on home loans, and to help the financial system as it struggles under the crushing weight of bad loans and poor investments.

This will have an initial positive reaction in the economy but will only lead to inflation in the end when the market starts correcting itself. We are already starting to see some of the negative effects of this too.

Oil rose to $50 a barrel for the first time since January on Thursday after a move by the Federal Reserve to buy government bonds hit the dollar and revived hopes the U.S. economy could soon begin its recovery.

The Fed announced on Wednesday it would pump another $1 trillion into the U.S. economy by buying long-term government debt for the first time since the 1960s and by expanding purchases of mortgage bonds.

"It's a combination of a drop in the U.S. dollar and the Fed's move that has pushed up oil prices," said David Moore, a commodity strategist at the Commonwealth Bank of Australia.

Add this with Obama raising taxes and we are really screwed this summer.

Us Mass residents have it even worse. Gas is going to start going up and Deval is still going to try and raise our gas tax. Although I haven't heard much news about it lately.

Trickle-down economics rebuttal

Stolen from Right Wing News.

Well, below I have outlined a guaranteed way to destroy any Democrat in a debate on this issue.

Step #1) When your Democratic friend tells you that "Trickle-Down" economics failed, ask your friend to quote one Republican politician in history who ran on "Trickle-Down" economics, or argued for an economic policy where wealth "Trickled-Down" from the rich to the poor;

Step #2) When your friend responds with "Ronald Reagan," ask again for a quote where Reagan ran on "Trickle-Down" economics. When your friend concedes that Reagan supported supply-side tax cuts and no Republican ever advocated "Trickle-Down" economics, proceed to Step #3;

Step #3) Your friend will now claim that supply-side tax cuts are the equivalent to "Trickle-Down" economics. Proceed by asking him to cite one business in the history of Capitalism where the owner takes his or her profits before the employee. Explain to your friend that all employees are a business expense, and therefore get paid before the owner makes a single penny. Moreover, this does not even guarantee that the owner makes a profit at all;

Step #4) Explain to your friend that all profits trickle up from the employees to the owner, and therefore large profits are simply evidence that all workers have received their agreed upon paycheck. The absence of, or decrease in, profits means that some workers are likely to get laid off;

Step #5) Then explain to your friend that since the bottom 40% of Americans pay zero income taxes because they get all their deductions back, it is impossible to give anyone other than "the rich" an income tax cut;

Step #6) Your friend at this point will argue that the bottom 40% pay payroll taxes, to which you respond that the Republican Party advocated a payroll tax holiday to get out of this economic crisis and the Democrats rejected that idea;

Step #7) After declaring victory, ask your friend why he supports the Party that is against profits and cutting payroll taxes?

Biden really is an idiot

Sure we might be in a recession right now. But things are no where near as bad as the Great Depression. Things aren't even as bad as the late 70's early 80's under Carter. Biden is just trying to make excuse why Obama's policies aren't working and won't work.

Vice President Joe Biden’s discussed the economy in stark terms at a Democratic National Committee fundraiser Monday night, in contrast with the upbeat tone coming from the White House over the past few days.

In a 20-minute speech in the lobby of the Corcoran Gallery of Art, Biden said President Obama "has inherited the most difficult first 100 days of any president, I would argue, including Franklin Roosevelt."

“Let me explain what I mean by that," he added. "It was clear the problem Roosevelt inherited. This is a more complicated economic [problem]. We’ve never ever been here before – here or in the world. Never ever been here before."

Turning to the budget, Biden said the White House is willing to bargain with Congress on the specifics of the president's grand programs.

But just like FDR, Obama's solutions to get us out of this mess won't work and will just make things worse. Government spending does not create prosperity. If that were the case Russia and eastern Europe would be the super powers today.

There is a proven track record to getting us out of these financial messes. It's called tax cuts. Tax cuts and less regulation. These bail outs didn't work and won't work. The government should have just let business's like AIG fail. Then I wouldn't have to hear about their bonus's anymore on the radio.

When left alone the market will correct itself and roar back stronger than before.

Like all things liberal

We should just take what they say as gospel and not debate global warming in the Senate.

Eight Senate Democrats are opposing speedy action on President Barack Obama's bill to combat global warming, complicating prospects for the legislation and creating problems for their party's leaders.

The eight Democrats disapprove of using the annual budget debate to pass Obama's "cap and trade" bill to fight greenhouse gas emissions, a measure that divides lawmakers, environmentalists and businesses. The lawmakers' opposition makes it more difficult for Democratic leaders to move the bill without a threat of a Republican filibuster.

The budget debate is the only way to circumvent Senate rules that allow a unified GOP to stop a bill through filibusters.

"Enactment of a cap-and-trade regime is likely to influence nearly every feature of the U.S. economy," wrote the Democratic senators, mostly moderates. They were joined by 25 Republicans. "Legislation so far-reaching should be fully vetted and given appropriate time for debate."

It takes 60 votes to overcome a filibuster in the Senate, but Democrats and allied independents currently control 58 seats.

Under a cap and trade system, the government would auction off permits to emit greenhouse gases such as carbon dioxide. The auctions would raise almost $650 billion over the next decade, with the cost passed on to consumers as higher energy prices.

The cap and trade proposal is highly controversial, especially in heavily industrialized states and regions where people get their electricity from coal-fired power plants. Obama's promise to use most of the revenue to award $400 tax credits to most workers hasn't quelled the controversy since the increases in utility bills could easily exceed the amount of the tax cut.

I really don't think all these liberals even care or believe in global warming. I think they are just pushing it on us to get their agenda passed. No one in their right mind could support "cap and trade". They are just Hell bent on crippling our economy and moving even closer to socialism on the false premise than man is called global warming.

If we are causing global warming can someone please explain to me the ice ages. The Earth froze and melted with out an SUV ever polluting the Earth. Like everything in the world, the weather cycles. Depending on how close the sun is to the Earth basically depends if we are going through a warming or cooling cycle.

Economy is not as bad as we think

Always the great optimist as Obama is, this is the best he can say about the economy. Well of course it isn't that bad yet, we are only 50+ days into his administration.

Confronting misgivings, even in his own party, President Barack Obama mounted a stout defense of his blueprint to overhaul the economy Thursday, declaring the national crisis is "not as bad as we think" and his plans will speed recovery.

Challenged to provide encouragement as the nation's "confidence builder in chief," Obama said Americans shouldn't be whipsawed by bursts of either bad or good news and he was "highly optimistic" about the long term.

I wonder what Obama will be saying next year when we have double digit unemployment along with double digit inflation? Probably "well at least it isn't as bad as it was under Carter."

Democrats hate out sourcing

Yet they are the main cause for corporations leaving the United States for more tax friendly countries. Only makes common sense, why would corporations want to pay more taxes and make less profits? Which is why I've been saying the best way to get out of the recession is to cut taxes and promote growth than that raising taxes and making it harder to grow the economy.

The tidy towns and mountain vistas of Switzerland are an unlikely setting for an oil boom.

Yet a wave of energy companies has in the last few months announced plans to move to Switzerland -- mainly for its appeal as a low-tax corporate domicile that looks relatively likely to stay out of reach of Barack Obama's tax-seeking administration.

In a country with scant crude oil production of its own, the virtual energy boom has changed the canton or state of Zug, about 30 minutes' drive from Zurich, beyond all recognition. Its economy was based on farming until it slashed tax rates to attract commerce after World War Two.

This is what happens when you threaten to raise taxes...

Where all the pork goes in Mass

Ted Kennedy has his hands all over the pork money coming to Mass. More than 1 out of 5 dollars are going towards the Kennedy legacy. I'm sure this is the best way to stimulate our economy...

More than one out of every five dollars of the $126 million Massachusetts is receiving in earmarks from a $410 billion federal spending package is going toward helping to preserve the legacy of the Kennedys - including a multimillion dollar center focused in part on Sen. Edward M. Kennedy’s own legacy.

The bill includes $5.8 million for the planning and design of a building to house a new Edward M. Kennedy Institute for the Senate. The funding may also help support an endowment for the institute.

The spending bill also includes $22 million to expand facilities at the John F. Kennedy Presidential Library & Museum, and $5 million more for a new gateway to the Boston Harbor Islands on the Rose Kennedy Greenway, a park system in downtown Boston named after Kennedy’s mother, on land opened up by the Big Dig highway project.

Wall Street Journal hands out grades to Obama and Geithner

And as I figured they both got failing grades for how they have handled the economy.

U.S. President Barack Obama and Treasury Secretary Timothy Geithner received failing grades for their efforts to revive the world's largest economy, according to participants in the latest Wall Street Journal forecasting survey.

A majority of the 49 economists polled said they were dissatisfied with the administration's economic policies, according to the paper, a stark contrast to Obama's popularity ratings with the general public.

On average, the economists gave the president a grade of 59 out of 100, and although there was a broad range of marks, 42 percent of respondents rated Obama below 60, the paper said.

Geithner received an average grade of 51, while Federal Reserve Chairman Ben Bernanke scored better, with an average 71, the paper said.

On average, the economists now expect the economic downturn to end in October, according to the paper. In the previous survey, they had expected the bottom would arrive in August.

And I'm sure these economist are a lot smarter than I am but yet we all agree. Government spending is no way to get a country out of a recession. If it were communists countries would be the most prosperous in the world.

If Obama and the Democrats were serious about fixing the economy they would have followed the same history lessons that JFK and Reagan showed us, tax cuts. Cutting the capital gains tax should have been the first thing Obama did to spur more investment into our economy.