Roger Jinkinson is a British writer, and he lives in a remote Greek village on the island of Karpathos (left). Although the village is not immune to the meltdown of the Greek economy caused by a huge problem with sovereign debt creditworthiness, simmering most furiously in the ancient capital of Athens, 400 kilometers away, the small village has found its own way to survive the crisis.
With the raising of the debt ceiling, the “official” federal debt immediately surged past a new and unwelcome benchmark: The national debt now exceeds 100 percent of the gross domestic product for the first time since the Second World War era. With the debt now at $14.58 trillion and climbing vertiginously every day even as the economy continues to stagnate, it will not be very long before the national debt reaches 200 percent and higher. In fact, with over $45 trillion owed to Social Security, Medicare, and Medicaid recipients both present and future, the actual size of the national debt is already more than four times the GDP.
Since its inception almost a century ago, the Federal Reserve has enjoyed a cloak of secrecy that has grown more opaque over the years. When the economy imploded in 2008, Bernanke’s Fed swung into action behind the scenes, handing out immense sums in bailouts to a host of ailing financials, through direct loans to the very biggest banks — what Robert Litan, a former Justice Department official, called “the aristocracy of American finance.” The exact figures, however, have been a closely guarded secret, until now.
The state of Nevada was the fortunate recipient of a $490,000 federal grant to grow trees and plants — and of course, to "stimulate" the state’s economy. The only problem is the stimulus spawned a whopping 1.72 permanent jobs. In 2009, the U.S. Forest Service awarded the federal money to Nevada’s Clark County Urban Forestry Revitalization Project with the intent of enlivening urban areas of the county with trees and plants, and of providing green-industry training.
Wall Street professionals' expectations are modest over Federal Reserve Chairman Ben Bernanke’s highly anticipated remarks at the Jackson Hole symposium this Friday. Unlike last year when the chairman announced the start of his program to purchase government securities in order to keep the economy from slipping into a recession and possibly deflation, known as Quantitative Easing II (QE2), his options now are much more limited. The anticipated bounce in the economy has fizzled, inflation is increasing, the banks are stuffed full of reserves but few are borrowing, and interest rates are already at zero and are expected to remain there well into 2013.