Category Archives: deficit

Backdoor Wall Street Bailout

131114-fed-yellen-easy-money-backdoor-bailout-wall-streetOur magic president has appointed a new Fed chief to make more magic money.

Janet Yellen’s Senate hearing for approval to succeed Ben Bernanke began yesterday.

Backdoor Wall Street Bailout

Andrew Huszar, a former bond buyer for the Fed, wrote an interesting apology in the WSJ this week for his role in “quantitative easing”.

He says that the Fed never bought a mortgage bond in its 100 year history until he was hired in 2009 to buy $1.25 trillion of the things! In a single year. According to Huszar Bernanke spun the scheme as a plan to help Main Street but it was really “the biggest backdoor Wall Street bailout of all time”.

Chairman Ben Bernanke made clear that the Fed’s central motivation was to “affect credit conditions for households and businesses”: to drive down the cost of credit so that more Americans hurting from the tanking economy could use it to weather the downturn.

QE may have been driving down the wholesale cost for banks to make loans, but Wall Street was pocketing most of the extra cash.

Easter Egg Roll

 

At The White House Easter Egg Roll, a boy tells another boy "I didn't know we were gonna get rolled (with debt)."As of today each individual’s share of the national debt is $53,276.81.

Deadbeat Nation

130114kick_can_road

In the final press conference of his first term, the president explained what he will and will not do. He might take executive action against guns and he won’t be negotiating the debt ceiling with a gun to the head of the American people .

We are not a deadbeat nation and the full faith and credit of the United States is not a bargaining chip. Except when it is.

Eat the Rich

130104tax_rich_congress

The tax hike on the rich to avoid the fiscal cliff will bring in 60 billion dollars. This year’s deficit is a trillion dollars. The president doesn’t want to cut spending. Stay tuned.

Budget Baseline Camp

121226baseline_budgeting_camp

Uncle Sam’s starting point for spending is a baseline of the previous year CBO projections for the coming year.

 “The most absurd current example is Mr. Obama’s claim that his “$4 trillion” plan reduces the deficit by about $800 billion over 10 years by ending the wars in Iraq and Afghanistan. But those “savings,” as he calls them, are measured against a White House budget office spending baseline that is fictional. Those wars are already being unwound and everyone knows the money will never be spent. But they are called “savings” to gull the public and make the deficit reduction add up to a large-sounding $4 trillion.”