National Review, the putative voice of political conservatism, continues to flack for the Federal Reserve and Fed chief Ben Bernanke's latest round of money magic known as "quantitative easing," or QE2.
Writing in the Wall Street Journal, chairman emeritus of the Hoover Institution, Kurt Hauser, strongly disagreed with the Obama administration’s claim that by raising taxes on just the top two percent of all taxpayers there would be a significant increase in tax revenues to the government. He claimed that Hauser’s Law would limit any anticipated increase in revenues, and it might even reduce them.
White House deficit commission co-chairman Alan Simpson spoke at a Christian Science Monitor roundtable on Friday morning saying, “I can’t wait for the blood bath in April. It won’t matter whether two of us [on the commission] have signed this or 14 or 18. When debt limit time comes, they’re going to look around and say, ‘What … do we do now? We’ve got guys [House freshmen] who will not approve the debt limit increase unless we give 'em a piece of meat, real meat, off of this package.’ And boy the blood bath will be extraordinary.”
When Anthony Mason, CBS News' senior business correspondent, visited the Treasury Room, he called it the location of “essentially the American credit card machine.” It’s where traders buy and sell United States’ treasury bills, notes, and bonds in order to finance government operations. Mason’s revelation was profound: "I found that room kind of spooky. If we can’t [sell] those IOUs — which keep the government running on a day-to-day basis — then we can’t run the country anymore. We [won’t] have the money."
With all the commotion over the invasiveness of the naked-body scanners used by the United States Transportation Security Administration (TSA), one question that has been ignored is who is profiting from TSA’s use of the body scanners? Mark Hemingway and Tim Carney at The Examiner discovered the shameful answer: George Soros, Michael Chertoff, and a number of lobbyists.
William C. Dudley, president of the Federal Reserve Bank of New York, defended the Fed’s recent announcement to print more money (called Quantitative Easing) to stimulate the moribund economy. Dudley, who is also the vice chairman of the Fed’s FOMC (Federal Open Market Committee), and former chief United States economist for Goldman Sachs, said that the decision to increase the supply of money was only to reduce interest rates further and not to devalue the dollar. He said, “We have no goal of pushing the dollar up or down. Our goal is to ease financial conditions and to stimulate a stronger economic expansion and more rapid employment growth.”
California is drowning in public debt. The California Legislative Analyst’s office, which is nominally nonpartisan and objective, projects that for the fiscal year ending June 30, 2011, the state will have a deficit of $6.1 billion — over $150 for one year for every man, woman, and child in California.
New York University economics professor Nouriel Roubini made a name for himself back in 2005 by predicting the Great Recession long before others did. Fortune magazine wrote “In 2005 Roubini said home prices were riding a speculative wave that would soon sink the economy.” The New York Times said he predicted “homeowners defaulting on mortgages, trillions of dollars of mortgage-backed securities unraveling worldwide and the global financial system shuddering to a halt.” In September, 2006 Roubini warned that “the United States was likely to face a once-in-a-lifetime housing bust, an oil shock, sharply declining consumer confidence, and, ultimately, a deep recession.”
Speaking on one of the political television shows before the election, Vice President Joe Biden proposed to make a deal with Republicans on tax increases. Democrats, who just raised the Medicare tax by 0.9 percent on those earning over $200,000 ($250,000 for joint filers), want to increase their political capital by making the Bush tax cuts — due to expire this year — permanent. The sticking point is the $250,000 threshold at which Democrats want “the rich” to begin to pay higher tax rates. Biden said the Obama administration was willing to consider raising the threshold. “I don’t have any problem with wealthy people getting a tax cut. I mean, for real,” Biden explained. “I mean, these are good guys.”
Before the Internet, Robert Zoellick’s brief outline of suggested topics for the G20 meeting this week in Seoul, Korea, might have been considered just an interoffice memo. It appeared in London’s Financial Times, contained obscure references to arcane subjects that would be of interest only to international bankers determined to push their agenda for a world currency, and was written by a certified member of the internationalist “insider” cabal. But when Zoellick wrote that the “cooperative monetary system … should also consider employing gold as an international reference point…,” Internet bloggers picked up on it immediately, and the cover was blown.