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Roubini Says Obama Must Talk To Americans As Adults Even As He Advocates Treating Them As Children
In an interview on Tom Keene's Bloomberg radioshow today, Nouriel Roubini said Obama has to stop treating Americans as spoiled children and to finally be truthful about the state of the American economy. “We have to recognize that Americans are adults. Then we have
to speak to them straightforward about the risks and challenges that we
have, rather than kicking the can down the road.” While we wholeheartedly agree that Obama needs to stop not only with his daily teleprompter appearances, but for once to be frank and to strip away the perpetual layer of green shoot propaganda (Americans realize how bad it is - they merely grow to loathe the president even more when they hear and see him lie day after day about the "improvements" in the economy), we are puzzled by what Roubini says next, which is that Obama has to continue with precisely the same type of stimulus spending policies, be they fiscal or monetary, that got the US to the current unsustainable level. Roubini says Obama should stop kicking the can down the road, when he advocates doing just that - in essence he is saying don't talk to Americans like children, but certainly treat them as such. As for the weening them off the massive Keynesian teat - well, that can wait... indefinitely.
Why is it so difficult for our leading economists to realize that the problem with the economy is not the stimulus, it duration, size, nor how it's used, but that US and global debt levels are far, far beyond the fair value of world assets, and that a global debt restructuring simply has to occur, (and yes, one which would involve wiping out of broad swaths of artificial and mark-to-unicorn equity), if we are to have any chance of avoiding an all out free-fall bankruptcy in which everyone stops paying their contractual obligations at precisely the same time. This is also known as Chapter 11 101, and has worked in the corporate world for many decades without a glitch. Alas, as this kind of action would require the richest 5% of the world to lose the bulk of their wealth (and yes, this includes various Ph.D's), this will never happen voluntarily. Which is why the financial oligarchy is currently being busy little bees stowing away as many hard assets as they can, knowing full well the day of reckoning is inevitable.
More on Roubini's conflicted statement:
The government must maintain fiscal stimulus in the near term before gradually reducing spending and raising revenue to rebound from the longest U.S. economic slump since the Great Depression, said Roubini, 52. A value-added sales tax is probably “the best idea on the table” to contain the federal deficit once the recovery gains momentum, according to Roubini.
Making a commitment to a fiscal plan will prevent markets from “getting spooked,” said Roubini, who in August 2006 predicted a “painful” U.S. recession that came to fruition in December 2007.
And here is the primary contradiction:
In the short run, Roubini said, the economy needs to maintain federal
fiscal stimulus to rescue indebted households and state and local
governments from bankruptcy. Failure to provide debt relief will reduce
consumption and force essential cuts on spending in areas such as
education and public safety, according to Roubini.
In other words: here kids, have some more money as reward for your idiotic and corrupt actions. You will get some more tomorrow as reward for being even more idiotic and more corrupt, but at some point we may take it away. And in the meantime, continue levering more and more - we will keep on bailing you out for as long as it takes to learn your lesson.
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"Making a commitment to a fiscal plan will prevent markets from “getting spooked,” said Roubini, who in August 2006 predicted a “painful” U.S. recession that came to fruition in December 2007."
Too late, I think somebody already said "boo."
Another hard pivot.
Laser like focu.......
Teleprompter probl.....
oh great. he will take this to mean spike lee talk and some a$$ kickin
roubini wants tv face time
I agree but for different reasons. Pour more gasoline on the fire, let's get it over with. Nothing short of full currency collapse will force the ouster of the maggots.
let the mutherf...s burn!! Johnny Bravo, where are you, you little weasel?
I can't wait for these bankster bastards to be brought to justice. I know, most will flee with all that slurped gold and sucked silver ( www.ft.com/cms/s/0/d9c3df36-7195-11df-8eec-00144feabdc0.html ) but nothing short of taking away their ability to control monetary policy will do.
It took me awhile to find this (because the "stolen" versions are wack)...
http://www.youtube.com/watch?v=LISSzNInGws&feature=PlayList&p=6F182F5FF7...
Personally... I'm kind of disappointed in Dr. Roubini... He used to be "visionary"... Now he's just trying to keep his 15 minutes of fame and get PAID... (kind of like the USERS of this song)...
Sweet. Thanks for this FS, just the way to kick it in the morning.
You have something to say to me homo?
Say it then.
BTW, who IS this zaknick guy trying to call me?
I've never seen him before, and now he's got something to say. Interesting.
...
you can say what you want about bravo but junk an ellipsis?
Roubini is desperately trying to stay relevant after having basked in the spotlight as the one who predicted the economic crisis. Trouble is that more than a year ago he, like many one trick ponies, lost his way.
Until then I prescribe heavy doses of pharmaceuticals for the sheeple.
an ayahuasca apertif madame?
Heavy doses? Every pharmacy around my parts has a sign on the entry door: "Limited supply of Oxycontin". Is everybody on Oxycontin except me?
Oxycontin, blood pressure medicine, you name it.
Half the country is taking antidepressants. If they'd balance their personal books they probably wouldn't need them imo.
now you know why the United State of Antidepression has been in afghanistan for the last 9 years. it's all about the papaver baby.
that seems to beg the question: how serious can you be in a WAR when you concede your enemy the chance to profit from contraband narcotics as you enforce a law dating from the 1920's to forbid opiates even while importing alcohol for you and your camp followers, a substance forbidden to the locals by their prophet well over a thousand years ago.
MFGD you have brilliant ability to combine words into sentences that = the truth. Maybe after the fall people like you will be considered as conkrites? I'm way more political than financial (broke,but with good internet). I see you hitting truth over, over, and over. My amateur but passionate take is that in a world way overloaded with info, TRUTH, ACCURACY,RELEVENCY, will be a gold standard for the masses, not just an elite privledge.
Thank you for what you do.
roubini advocates continued funding and pumping of education - one of the most corrupt, wasteful, destructive pigs at the trough. teaching kids obama praise songs, tolerance, condom usage, abortion for kids and barely literate students all while filing coffers of corrupt unions
So what do you suggest ? Kids stay illiterate .... ?
Kids don't go to school anticipating obama songs, abortion and condom techniques.
Funding for education is the only future ahead. The subset of crap that comes with it is tolerable as kids grow up and become educated more to see good from bad.
How about math science and language. You can keep your condom and cucumber to yourself.
"Funding for education is the only future ahead."
Gosh darned it, considering what we have at the top, it's all workin out swell ;-)
Continues sucking thumb.
The elites must really be excited about Nanotech. All that nanoparticle "goodness" in every food and cosmetic product. Induced cancers yeehaa. TPTB need most of us kicking the bucket before 65 like the good ol days.
Funding for education is the only future ahead.
Yeah, the metric fuckton of FRNs we currently spend on public primary and secondary education is working wonders, what?
Good Lord, how did we ever manage all those years without a union-hack dominated government monopoly for primary and secondary education in these United States?
WTF? Sounds like you've OD'd on your anti-depressents. Here's a link you may find supportive of your O'B praise song/condoms-for-kids BS: http://www.foxnews.com/
teenagers need sex education from teachers otherwise they get ALL their information from their friends and pr0n, which is a lot worse if you think about it.
the idea that you can shield teenagers from sex in today society is completely ridiculous.
here is a link to sunday times about puberty creeping down in ages.
http://www.timesonline.co.uk/tol/news/uk/health/article7148975.ece
i don´t know if this is related to all the hormones in the watersupply curtesy of flushed down birthcontrol pills. makes a pretty good case for comdoms if it is...
now a ten year old hitting puberty needs a grown up to explain wtf is going on with his/her body.
leaving teenagers to figure it out by themselfs is not the way to go.
also teaching kids tolerace is not a bad thing...
TD - well said. That 'credible plan' to return to fiscal sanity will forever be pushed off, and therefore will never be viewed as credible - "we don't have the will to do it now, but we promise we will later". We also won't ever get to that magical point of sustainable recovery that will trigger this point until we deal with the debt overhang. It's a classic Catch-22.
And I think they have a lot less time to do it on their own terms than they think they do.
American Middle-Class is a herd of cattle, and the Media including the Clown Roubini is a kennel of cattle-herd dogs; herd dogs agitate and distract and delude the herd into the slaughterhouse owned by the American Ruling Class and its corporations.
NOTHING NEW
And she'll have fun fun fun 'til daddy takes her T-bird away. Fun Fun now.
That AUD/JPY action is awsome tonight.
A keynsian ebubblegnomist recommending MO' BETTA' keynsian pogroms, shocking! He's probably been reading some of dear leader F**king Dictator Roosevelts horse poop and thinking Obumble could benefit from some proper lying.
GAH! Someone needs to stick a fork into this ponzi ebubblemy...
Well, the China GDP just disappointed and pointed to tightening credit and slower growth and the DOW futures jumped 70 points and 8 handles on the S&P.
Why stop treating them like children when they eat up all this bullshit candy? They love the gum drops and fluffing.
Amazing...literally...amazing.
I hear ya, Boiler.
Looks like we're on another 45-day, 0.5%/day bender just like February into March. Nothin stopping it.
Mr. Turd,
Now, you have to check out CNBC website.
No shit, the headline was "China GDP disappoints". Then went to "China GDP slows". Then went to "China GDP slows moderately". And now, I kid you fucking not, "China's economic growth slows, as Beijing intended".
Christ-all-mighty...what the fuck have we become?
An excellent observation on the subtle attempts at MOPE.
As I am fond of saying; there is no shortage of idiots. If you don't believe it, get on the freeway.
He's been spot on with his economic predictions of doom but is in hock to the status quo as part of the establishment. If there's more economic pain down the road (which there appears to be) there will be political repercussions, especially if there's true upheaval. That means a lot of sacred cows in Washington and their interests (e.g. Israel) may be the next ones on the chopping block.
Let it effing burn, mfs.
"Let it effing burn, mfs."
my current thoughts exactly.
'tis a shame really, but fuck it.
free the mind and the flames will follow.
A stopped clock is right twice a day.
Geeez, I thought Roubini was one of the few good ones.
-The VAT is the "best idea on the table" to contain the federal deficit? How about not spending so much fucking money on useless crap programs or not inserting the federal government deep into every last area of people's lives in the first place?
-Oh yes and the Feds must save those public service saints in bankrupt state and local governments - can't stop that gold-plated-benefits-for-life gravy train. And by all means Mr. Roubini, if the SFTH there lets gut public safety and education first because there simply isn't any fat to cut anywhere else. Municipal diversity counselors have boat payments too you know...
What about the war?
There's 454 million a day you can save right there.
Most Republicans would rather spend money building schools in Iraq than on American citizens. Are you such a person, or were you joking?
Of course, yes. Our two "wars" have been surreal, pointless endeavours for a long time now and the plugs should be pulled there even if the cost were negligible My bad.
This fucking Roubini is a fucking douchebag.
Just like Prechter or Joe Granville, the guy makes one good call and suddenly he's fucking Nostradamus. Then he tries to milk it for everything its worth until, eventually, the speaking and appearance fees dwindle down to nothing because everyone's figured you're actually just a fucking retarded moron. Nothing more than the proverbial "blind squirrel" personified.
+10^9500000
Roubini IS a douchebag.
Turd, you ever post on mtv back in the day, or on FFYR? I'm just curious.
DrBravo: Nope, this is first and only occurrence of a blogging Turd. However, Financial Turd should not be confused with some of the other Internet Turds out there on the web.
Btw, who'd you piss off that they junk all your comments?
I reject the premise that Obama knows what he is doing or what is really happening. Thus, he would be unaware of truth and consequently unable to articulate truth.
They see the world through their own lies to justify their happy existence and claim morality in doing so.
However, many do knowingly lie and claim it is what's best for society.
Perhaps Obama is only capable of talking to people like they are children. Maybe that's all he can handle.
After all... CHILDREN are mostly who voted for him...
Unfortunately... the "whiplash" effect will only be "DISAFFECTED CHILDREN" (and their converts), who will support "Pailn-esque" types next time around...
And the beat goes on... (until it can't anymore due to bankruptcy)...
I support THIS GUY for President...
http://perlasandluna.files.wordpress.com/2009/03/dsc_03352.jpg
My thinking is... Someone should, AT LEAST, have the resume (or job skills) of having run a DAIRY QUEEN before he/she is ever elected POTUS...
Obama - is a punishment for the paganistic Empire called USA. Obama is a mirror.
Roubini jumped the Shark in 2008.
Total blowhard.
The guy is an asshole. He always says the same thing. He's like David Rosenberg, but I actually kind of respect Rosenberg.
Not so much on Dr. Doom.
+10000 - Happy Days Reference a bonus - Roubini as Fonzie "Ayyyyy, Too Big Too Fail, is just too Big, right Arnold?! Turd Ferguson referenced Precther & Granville - Precther as Potsy, Granville as Mr. C - Turd you could definitely write this episode & do it justice - all I ask is that you cast Obama as Arnold, please.
Roubini actually advocated anti-bankster actions into early 2009. Since then he has just advocated "stimulus" a la Krugman.
Johnny Bravo's last comment comparing Roubini to Rosenberg is comparing two very different economists. Roubini worked for Clinton's Treasury Department and is a big government guy. Rosenberg is much more libertarian, as he discussed a few weeks ago in one of his daily notes. So I respectfully disagree with JB. Up with Rosenberg, down with the recent Roubini.
Tell ya what folks, I'll gladly support a VAT -- PROVIDED that the Govt actually cuts most of the blubber off its miserable hide FIRST!
(sounds of crickets chirping...)
They will never, ever cut.
They will only respond to a crisis.
If a collapse, collapse forces the cuts.
Otherwise, constant upmovement.
No other way politically.
Squouriel Roubini.
Prepare for bad news only.
Now the problem is so big, we must be leveled with.
If we were told the whole story / truth to begin with a lot of the problems we face today would never existed.
Roubini lives in another universe if he thinks the american people are adults.
I mean, jeezus, man, where have you been?
Find me one adult in the United States.....I'll wait......
Our people over the age of 30 are children, adolescents with ear hair.
Proof is in the pudding.
They drive around in their fancy matchbox cars and live in their barbie houses.
You've hit the root of the problem. Americans refuse to grow the fuck up, and voting for Barack Obama is proof.
The left is stuck in the 1960s civil rights movement, and the right is stuck in the Reagan era.
the "hard assets" your recommend holding on to will also deflate in absolute terms in these conditions (with M3 aggregates & velocity going way down etc.)
that's why John Taylor is recommending USD cash as the way to go..
That and there's a starving beast who desires your wealth. If it sees an opportunity to feast on prey, it will. I expect gold wealth to be another source of nutrition for this scraggly looking thing.
Additionally, if gold represents a threat to this collective society we live in, they will tax the heck out of it. It will be much harder to deal in it without paying a high tax on it. Should be interesting.
Immense tail risk.
USSR and Argentina went through deflationary collapses.
The notes of bankrupt states do not suddenly become more worthful because the accounting ledger says they should be. Things just fall apart if those types of stresses appear. Remember, the gov't needs dollars too.
Cash is king- until the revaluation event/currency collapse.
Then- sproing (melt-up) to precious metals!!!!
It's all about the timing.
VAT? Fuck you Roubini. Just another tribe hack pimping for his plutocrat cousins.
How about cutting the perpetual state of war? The same thing destroyed the Spanish Empire when they ran out of reserve currency to fund their stupid conflicts.
"While we wholeheartedly agree that Obama needs to stop not only with his daily teleprompter appearances..."
Now, that's something I'd like to see, Obama Unplugged.
How crazy can both analysts & governments get? Analyst working for RGE says 'BoJ has lost the ability to create inflation'. (http://www.cnbc.com/id/38255206)
QE was (and will be) top-down stimulus. It didn't work. After WWII politicians considered Full Employment more important than inflation. Things have changed a bit since then. Now, Roubini thinks the US should continue fiscal stimulus, mostly to rescue households. He get points for recognizing there's more to economics than monetarism, but the problem is that he doesn't specify the fiscal stimulus. Either he doesn't know how to call it by its name, or is unwilling to: a Job Guarantee.
I know, it's a kind of spending, but.. it's a much easier way to create inflation. The buffer of jobs provided by the government can be reduced as soon as there are real signs of recovery (didn't recessions end after three consecutive quarters of growth?). Swing back the tide, put people to work and then we'll talk about the deficit.
Everytime some asshat recommends a VAT I want to breka something. I so hope I run into Nuriel in a dark alley of NY. Fuck the VAT. Dump the current income tax program and go to a straight consumption flat tax, or a FAIR tax.
As warned about for some time... EURUSD daily chart is bullish.
http://stockmarket618.wordpress.com/about
"We have to recognize that Americans are adults."
My experience differs...
Tyler, Chapter 11 ain't what it used to be. Just take a look at what happened with Chrysler and GM. § 363 sales are now the norm. The secured creditor just take back their collateral and sell it to the preferred buyer. It's happening everywhere in the country. Just flush the massive debts of Sucker A through the bankruptcy court, take back the assets, and then sell those assets to Sucker B, and begin B's overleveraging... Rinse, wash, repeat.
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I dont know any adults who would stand for being robbed, which is what I think he's advocating.