If you understand the relative superiority of the free market, none of our government's recent business bailouts will find favor with you. Yet, while Uncle Sam's involvement in the auto and banking sectors is bad enough, nothing is more bone-chilling than proposals to bail out media.
Sen. Judd Gregg, R-NH, knocked the spending plans of the Obama administration Tuesday, one day after the Treasury Department announced the deficit reached the $1 trillion mark at the end of June, just three-quarters of the way through the current fiscal year.
The economy isn’t out of the woods yet, not by a long shot. That, at least, is the conclusion drawn by none other than U.S. News & World Report’s eminence grise Mortimer Zuckerman, in a July 14 article in the Wall Street Journal.
With plunging advertising revenue across the industry, McGraw-Hill is reportedly putting BusinessWeek up for sale. The company said only that it is exploring “strategic options” for the magazine so far, but according to sources cited in Bloomberg, The New York Times and The Wall Street Journal, investment bank Evercore Partners Inc., has been hired to facilitate the sale.
“Consumer prices shot up in June by the largest amount in 11 months,” the Washington Post reported June 15, “reflecting the biggest jump in gasoline prices in nearly five years.” The 0.7 percent June increase in the Consumer Price Index represents an annual rate of more than eight percent as well as the first consumer symptom of the hyper-inflation the Federal Reserve created over the past year.
President Obama’s Auto Task Force Chairman Steven Rattner resigned suddenly earlier this week after reports that the New York Attorney General’s office was investigating Rattner’s role in a New York State pension bribery scandal.
Weeks before it was supposed to happen, a bankruptcy judge has approved the restructuring of large portions of once-mighty GM and the liquidation of the automaker’s remaining assets. Under the plan, announced last Sunday, the “new GM” being created will be under 60-percent control by the federal government.
The Ludwig von Mises Institute’s Howard S. Katz has revealed that the Federal Reserve Bank has inflated the U.S. currency to unprecedented levels since September 2008 and that it is hiding the fact. Katz cited a Federal Reserve letter he received in response to an inquiry where the Fed admitted that its Open Market Committee stated it “has increased the Fed balance sheet to levels never before seen.”
Asked by This Week’s George Stephanopoulos about the Obama Administration’s terrible economic prognostications in advance of passage of the $787 billion “stimulus” spending bill back in February, Vice President Joe Biden regurgitated a familiar talking point:
Just days after Vice President Joe Biden told George Stephanopoulos that it was “premature” to push for another “stimulus” spending bill, Obama economic adviser Laura D’Andrea Tyson told a seminar in Singapore on July 7, "We should be planning on a contingency basis for a second round of stimulus." Though Tyson is a member of Obama’s Economic Recovery Advisory Board, she said in the speech she was speaking for herself and not for the administration.