Posts tagged Bailouts
The Monarchs of Money
The world’s central banks have printed unimaginable amounts of money in recent years. Neil Macdonald explores what this means for the global economy and for your financial well-being.
Republished with permission.
Few people realize that the debt ceiling is aligning right on track with the fiscal cliff. Total public outstanding debt is now at $16.369 trillion and is only $63 billion away from breaching the limit. Not a coincidence that the fiscal cliff is also on the horizon. In essence, we are addicted to debt. However US households have been on a multi-year long process of deleveraging yet this is not being asked from banks or governmental institutions. Of course we knew this was coming. Anyone that was honestly objective realized that we were on an unsustainable path. Yet the name of the game is now about kicking the can furiously down the road so it falls beyond or line of vision. Then we act surprised when we arrive at the can and it has only gotten heavier with debt. So as we are T-minus a few days from the fiscal cliff, let us examine the debt ceiling.
Debt ceiling being breached
We are fast approaching the debt ceiling:
As stated, we are $63 billion away from hitting this. This week another $26 billion will be added courtesy of a few auctions so we will hit this before the New Year. Debt has been expanding at a furious pace:
The ECB is facing similar issues and they are essentially rolling over debt like a giant snowball. The reality is, the only way out of these mountains of debt is through a slow methodical inflation. The Fed is not even shy about admitting this. Why else would they be digitally printing money with no fear? They realize the debt destruction of American households is enough to offset the trillions of extensions and side programs that are being offered to the banking system. But after years of this, we are now seeing spillover effects via housing bubbles, student loan bubbles, food price hikes, healthcare costs soaring, and other items of that nature all in line with stagnant incomes.
A true statesman and humanitarian, Dr. Ron Paul, simply states the road we are on verses the road we should be on, explaining both consequences and rewards. I feel no individual in office can fill his mighty shoes, but that is not necessary, as the time is now to advance the cause of Freedom and Personal Liberty and the person to carry that cause is you and I, as individuals uniting to create a critical mass, so often mentioned by Bob Schultz and others. The revolution is now in our hands and we each will decide how best to promote the battle for Liberty!
Transcript Location: http://www.campaignforliberty.org/national-blog/transcript-of-farewell-address/
Congressman Paul’s final speech on the House floor before leaving Congress
Below is the transcript of Ron Paul’s farewell address to Congress:
Farewell to Congress
This may well be the last time I speak on the House Floor. At the end of the year I’ll leave Congress after 23 years in office over a 36 year period. My goals in 1976 were the same as they are today: promote peace and prosperity by a strict adherence to the principles of individual liberty.
It was my opinion, that the course the U.S. embarked on in the latter part of the 20th Century would bring us a major financial crisis and engulf us in a foreign policy that would overextend us and undermine our national security.
To achieve the goals I sought, government would have had to shrink in size and scope, reduce spending, change the monetary system, and reject the unsustainable costs of policing the world and expanding the American Empire.
The problems seemed to be overwhelming and impossible to solve, yet from my view point, just following the constraints placed on the federal government by the Constitution would have been a good place to start.
How Much Did I Accomplish?
In many ways, according to conventional wisdom, my off-and-on career in Congress, from 1976 to 2012, accomplished very little. No named legislation, no named federal buildings or highways—thank goodness. In spite of my efforts, the government has grown exponentially, taxes remain excessive, and the prolific increase of incomprehensible regulations continues. Wars are constant and pursued without Congressional declaration, deficits rise to the sky, poverty is rampant and dependency on the federal government is now worse than any time in our history.
All this with minimal concerns for the deficits and unfunded liabilities that common sense tells us cannot go on much longer. A grand, but never mentioned, bipartisan agreement allows for the well-kept secret that keeps the spending going. One side doesn’t give up one penny on military spending, the other side doesn’t give up one penny on welfare spending, while both sides support the bailouts and subsidies for the banking and corporate elite. And the spending continues as the economy weakens and the downward spiral continues. As the government continues fiddling around, our liberties and our wealth burn in the flames of a foreign policy that makes us less safe.
The major stumbling block to real change in Washington is the total resistance to admitting that the country is broke. This has made compromising, just to agree to increase spending, inevitable since neither side has any intention of cutting spending.
The country and the Congress will remain divisive since there’s no “loot left to divvy up.”
Without this recognition the spenders in Washington will continue the march toward a fiscal cliff much bigger than the one anticipated this coming January.
I have thought a lot about why those of us who believe in liberty, as a solution, have done so poorly in convincing others of its benefits. If liberty is what we claim it is- the principle that protects all personal, social and economic decisions necessary for maximum prosperity and the best chance for peace- it should be an easy sell. Yet, history has shown that the masses have been quite receptive to the promises of authoritarians which are rarely if ever fulfilled.
US President Barack Obama demanded from Congress immediate action to prevent America from falling of a so-called fiscal cliff, but Rep. Ron Paul (R-Texas) says it might be too late to keep the country afloat.
Speaking with Bloomberg Television on Thursday, the lawmaker who ran against Pres. Obama during the last two elections said he expects that America’s financial woes are beyond repair.
“We’re so far gone,” said the congressman, who will retire from the Hill this year after serving 12 terms in the House. “We’re over the cliff. We cannot get enough people in Congress in the next 5 to 10 years who will do the wise things. We have to prepare for having already fallen off the fiscal cliff.”
On the campaign trail leading up to the Nov. 6, 2012 election, Rep. Paul proposed an array of ideas he said would save the country from economic disaster, including returning to a gold standard and abolishing the Federal Reserve, America’s central bank. On his part, Pres. Obama vowed to keep the company in tact if elected to a second term, and Friday told reporters at the White House that he expects Congress to come to his side and do what’s right to prevent what Rep. Paul says is inevitable now.
By Robert Taylor
Texas Congressman Ron Paul is urging GOP presidential candidate Mitt Romney to release more of his tax returns, claiming it is what the American people want.
Paul told Politico in a candid interview that he isn’t sure why Romney hasn’t released his tax returns yet but says that it would be good for Romney if he did so, peppering in his usual lamenting about the bipartisan nature of both parties.
“It’s a shame. The important issue is [what] the two candidates seem to agree on,” Paul said. “They don’t really disagree with militarism overseas, they don’t disagree with the Federal Reserve system and the bailouts, and they don’t disagree on basically whether the role of federal government is wealth redistribution through welfare. So instead, they’re talking about tax returns and that to me is so disappointing.”
“It’s all a charade, I think it’s all contrived to not have a debate,” Paul said.
As stated so many times before, the Romney vs. Obama charade is yet another hoax, a false sense of choice for the US citizens. The same controllers own both of them, so you pick the puppet behind the podium, that is the only choice if you believe the mainstream media hoax. I for one will not choose the lessor of two evils! I will use intellect, common sense and love of country to guide my vote for Ron Paul.
Related post: Romney Obama the Same?
By Agence France-Presse
Greeks fed up with stories of austerity and gloom can now turn to a new website aptly named Everything is OK (ola kala, OK in Greek) which aims to bring only happy news stories to the population.
Describing itself as an “online health wellbeing portal”, the site www.olakala.gr tells users: “If you want to change your life, come with us.”
Weary Greeks can now seek solace online to learn how to meditate, find out how Germany has made the most of austerity measures and search for jobs and the “solutions to (your) problems” that the site proposes.
Amid the European debt crisis, Greece has been saturated with coverage of spiralling public debt and a possible exit from the eurozone.
Greeks are living under a tough series of austerity measures imposed in return for hefty EU-IMF bailouts in 2010 and 2011.
German Constitutional Court takes Power away from Merkel, says Parliament is Superior
Wow the courts around the world sure have been busy this week and the past one. First Egypt’s court dissolved the parliament there and then Pakistan’s Supreme Court kicked out it’s Prime Minister.
It says the Parliament is superior in rulings than Merkel. It looks like the ruling has possibly put the ESM at risk of being ratified in Germany too.
This is going to throw Europe into chaos, in my opinion. There will be no more free flowing money from Germany which has been the country that has provided the bailout money. Considering Spain and Italy are just going into crisis mode and needing money fast, there are going to be some wild rides coming up.
D is eutlich the judgment of the Constitutional Court on the political voice of the Bundestag. A unanimous slap for the Chancellor , which is known to prefer the quiet reigns, bug-proof closet out. And like the MPs considered Kopfnicker like that should approve without opposition in the Bundestag and uninformed, what in the Chancellery of her and her main power brokers Ronald Pofalla was once again concocted.The imperative for future policy operations has consistently expressed the judgment: Saying what’s wrong and what is just is, as soon as possible. . And this is especially important for international agreements such as the euro rescue ESM . For its cash, the citizens must pay this year alone, 8.7 billion euros of taxpayers’ money. What could be justified in view of these sums, let Parliament and the people in the dark?
Anti-democratic argumentsThe opponents of transparency has often used anti-democratic arguments First, it is more efficient when political decisions are sometimes waved through in small bodies. Second, it would be even more difficult to achieve international agreement, if any should be informed and the secrecy is no longer guaranteed. But what kind of cynicism! Only the stupid MPs is a good deputy? And only the stupid people is a good citizen?. Since the judgment of our constitutional judge does really well. The Bundestag may a say again, apply the established democratic rules of our Constitution.. The future it could also again be clear who we need to assign responsibility for various “bailout” that are being set almost every week somewhere.
Only the Parliament, then the Chancellor’s Office
. As such, it was high time that the specific form of caricature of government has met with opposition from the Constitutional Court. The Basic Law does not exist for arbitrary disregard of the political sphere. A Chancellor would actually follow it more carefully than any other participating political institutions, because it finally puts her oath of office on it. And we do not want to be governed by and on peaks that operate infinitely far away from our daily lives. . Considered democratic, the chancellor’s office is subordinate to the parliament clearly. The Chancellor should also be in support money finally take note of.. We do not want to be governed by Gutsfrauenart. The state authority emanates from the people. Again remember, Mrs. Merkel?
I do believe things have just gotten more interesting in Europe now. I don’t believe this will go over well with those countries that are needing money desperately.
Filmed and Edited by Ray Anderson http://dobsonimages.smugmug.com
Lifestyles by Erwin Steijlen
Ron Paul Revolution Theme Song by Aimee Allen
4th of July by The Brightwings
On May 3rd, 2012 at the University of California at Davis Ron Paul spoke to thousands of cheering, sign waving supporters. Wherever he goes Ron Paul is supported by The Many.
A range of topics were covered included tolerance in society, non-violence, compassion towards others, the free speech issues of today, and a peace through trade foreign policy citing historic and present day examples.
Touching on the cornerstone of his monetary policy, Dr. Paul explained how current economic policies hurt the purchasing power of the middle class, how to solve the inflation issues of today, and how freedom can bring people together to create prosperity.
Rep. Ron Paul (R-Texas) is the last man standing in the Republican presidential race besides presumptive victor Mitt Romney, even after a strategy statement misunderstood by many as “dropping out.” Since that announcement, Paul has won his second state, Minnesota (Maine was the first), and is on target to end up controlling presidential voting delegations in such states asIowa, Louisiana, and Missouri. Far from fading as a cultural force, Paul continues to draw huge crowds, sometimes over five thousand students, on campuses as well.
As the presidential field has shaped up to a certain Obama vs. Romney in the major parties, the desire for a challenger championing either the serious right or serious progressive left grows. And Ron Paul—though he continues to deny any third party plans and his political machine has clearly hitched itself to the GOP for now—is strangely a viable candidate for either role, should he choose to accept it.
Paul is in many ways the rightest of right wingers, with his desire to kill the income tax, end governmentinterference in medical care, and get to a balanced budget in three years with no tax hikes. A third party Paul, should he make such a radical choice, would provide a choice for right-wingers dissatisfied with Romney’s small-government bonafides.
Yet despite Paul’s impeccable Tea Party credentials on tax and spending issues, he would be an even more appealing choice to progressives dissatisfied with President Obama. Even while running for the GOP presidential nod, Ron Paul has presented a political vision in many respects to the left of the Democratic Party.
President Obama wants to continue and expand every aspect of the war on drugs, including the war onstate-legal medical marijuana operations. Paul thinks government attempts to arrest people for actions that harm only themselves are inherently illegitimate. Obama’s administration has set records in deportations. Paul mocks border walls as un-American in Republican candidate debates.
Obama approves of enormous bailouts to huge financial institutions, and his administration’s high-level economic planning is run almost entirely by insiders from such institutions. Ron Paul is opposed to what he (and leftists) calls “crony capitalism.” Paul’s free-market policies would leave corporations with no more power over the American people than the corporations get by selling people things, things people choose to buy. (Unlike the products of the hated health insurance companies, which ObamaCare mandates that we all purchase.)
The situation in Iceland is something those of us outside of the volcanic island nation hear about far too little, and when one examines the story of how Iceland triumphed over massive debts, it makes a lot of sense why this is the case.
Earlier this year, the Icelandic Financial Services Association published a report showing that since the end of 2008, Icelandic banks have forgiven the equivalent of 13 percent of the nation’s gross domestic product in loans.
This has directly lifted the crushing burden of debt form the shoulders of over one quarter of the Icelandic population, something which many people around the world – but especially in the United States, Greece, Spain, Italy and other nations struggling with massive debts – would likely appreciate greatly.
In 2008, Icelandic banks defaulted on a whopping $85 billion in loans, yet the nation has taken steps to recover and they are already proving to be effective.
“You could safely say that Iceland holds the world record in household debt relief,” Lars Christensen, the chief emerging markets economist at Danske Bank A/S in Copenhagen, explained.
“Iceland followed the textbook example of what is required in a crisis. Any economist would agree with that,” he added.
Then why wouldn’t other nations follow a similar model instead of pouring even more money into the black hole of debt, hoping that it will somehow fix itself?
That is a question which cannot be answered with any degree of certainty, but Iceland has proven that endless bailouts are not the only way we can turn countries around from the brink of collapse.
The Icelandic economy will outgrow the eurozone in 2012 and is set to outgrow the entire developed world on average, according to estimates from the Organization for Economic Cooperation and Development.
This growth is reflected in the fact that many polls are showing that the people of Iceland have no interest in joining the European Union, which continues to be wracked by a debt crisis the likes of which have never been seen.
The solution Iceland implemented involved an agreement between the banks and the government, which entailed forgiving debt exceeding 110 percent of home values.
This is commonly known as “under water” mortgages (or more technically “negative equity”), which have become far too common place, especially in the United States.
Indeed, a CNBC article from November of last year stated that one out of two U.S. mortgages is effectively underwater.
In addition to the debt forgiveness, the Icelandic Supreme Court ruled in June 2010 that loans indexed to foreign currencies were legal, which means that Icelandic households were no longer expected to cover krona (the Swedish currency) losses.
The most important factor of their approach, however, is that every step of the way they have put their own people before the markets. This is essentially the polar opposite of what we have seen so many other nations do in response to debt crises.
The Icelandic government basically left international creditors to deal with their failed loans on their own, removing all responsibility from their own people.
Now Iceland is proceeding to actually prosecute some of their formerly most powerful bankers and the Icelandic special prosecutor has stated that it very well may indict some 90 people.
Meanwhile, over 200 people, including the former chief executives of Iceland’s three biggest banks, face criminal charges for their activities.
Maybe some other nations should take a page out of Iceland’s book and think about their people before the banks that caused the crisis in the first place.