New York Times
Nobelist Paul Krugman has a propensity to spin and conceal. This allows for deception – the type of thing that hoodwinks some readers of his New York Times column. While deception doesn’t qualify as lying, it also fails to qualify as truth-telling. Prof. Krugman’s New York Times column, “Hot Money Blues” (25 March 2013) is a case in point. Prof. Krugman sprinkles holy water on the capital controls that will be imposed in Cyprus. He further praises to the sky the post-1980 capital controls that were introduced in a number of other countries.
Bernanke Entirely Fails to Answer Question
Fukushima Still Pumping Out Massive Amounts of Radiation
- Cypriot Bank Levy Is ‘Ominous’ for Bondholders, Barclays Says (BBG)
- Euro, Stocks Drops; Gold, German Bonds Rally on Cyprus (BBG)
- Total chaos:Cyprus tries to rework divisive bank tax (Reuters)
- More total chaos: Cyprus Prepares New Deposit-Tax Proposal (WSJ)
- Euro Slides Most in 14 Months on Cyprus Turmoil; Yen Strengthens (BBG)
- Osborne to admit fresh blow to debt target (FT)
- Even the Finns are giving up: Finnish Government May Relinquish Deficit Target to Boost Growth (BBG)
- Moody’s Sees Defaults as PBOC Warns on Local Risks (BBG)
- Australia Faces ‘Massive Hit’ to Government Revenue, Swan Says (BBG)
- Inside a Warier Fed, Watch the New Guy (Hilsenrath)
- Obama to Tap Perez for Labor Secretary (WSJ) - and with that the "minorities" quota is full
- Finally, this should be good: BuzzFeed to Launch Business Section (WSJ)
The 9/11 Commission Report Has Crumbled Like a Ponzi Scheme ...
Surprise, surprise... the 'most transparent administration ever' is, well, the least transparent. Not that any of you are shocked by this revelation, but a new report by the Associated Press demonstrates just how secret our government and intelligence agencies have become. Not only did they claim “national security” over and over like a bunch of drunk parrots, they also claimed the need to protect “internal deliberations.” Specifically, the number of times the government withheld or censored reports in 2012 was 479,000 times, up 22% from 2011. The CIA denied 60% of requests, up from 49% in 2011. "In some ways, the Obama administration is actually even more aggressive on secrecy than the Bush administration."
They didn't see it coming last time either. Back in 2007, President Bush, Federal Reserve Chairman Ben Bernanke and just about every prominent voice in the financial world were all predicting that we would experience tremendous economic prosperity well into the future. In fact, as late as January 2008 Bernanke boldly declared that "the Federal Reserve is not currently forecasting a recession." At the time, only the "doom and gloomers" were warning that everything was about to fall apart. And of course we all know what happened. But just a few short years later, history seems to be repeating itself. All of our "leaders" swear that everything is going to be okay. You can believe them if you want, but denial is not just a river in Egypt, and another crash is inevitably coming.
The Biggest Welfare Queens of All ...
Yo Liz: Subsidies for the zombie banks total more than $3 annually for every dollar in income reported by the industry...
The Dow is at a record high and so are corporate profits - so why does it feel like most of the country is deeply suffering right now? Real household income is the lowest that it has been in a decade, poverty is absolutely soaring, 47 million Americans are on food stamps and the middle class is being systematically destroyed. How can big corporations be doing so well while most American families are having such a hard time? Isn't their wealth supposed to "trickle down" to the rest of us? Unfortunately, that is not how the real world works. But now we have replaced capitalism with something that we like to call "corporatism". In many ways, it shares a lot of characteristics with communism, and that is why nations such as communist China have embraced it so readily. Today, most big corporations are trying to minimize the number of "expensive" American workers on their payrolls as much as they can. Right now, the system is designed to continually funnel more money and more power to the very top of the pyramid. The global elite are becoming more dominant with each passing day. The idea of a very tiny elite completely dominating all the rest of us goes against everything that America is supposed to stand for. In the end, it will result in absolute tyranny if it is not stopped.
Much virtual ink has been spilled over the decline of the mainstream media, measured by circulation, advertising revenue, or a general sense of irrelevance. Furthermore, news consumers increasingly recognize that the mainstream media outlets are basically public relations services for government agencies, large companies, and other influential organizations. Journalists do very little actual journalism — independent investigation, analysis, reporting. A news outlet that deviates from the Narrative by doing its own investigation or offering its own interpretation risks being cut off from the flow of anonymous briefings which means a loss of prestige and a lower status. In exchange for sticking to the Narrative, they get access to official sources. Give up one, you lose the other. Readers are beginning to recognize this, and they don’t want to pay. Nowhere is this situation more apparent than the mainstream reporting on budget sequestration.
Kitchen-table reality polluted the scene
Grillo refers to Berlusconi as “the psycho dwarf.” Grillo’s vision of Bersani is a “dead man walking.” In an interview that Grillo had with the New York Times over the weekend he said he would support neither side and that doing so “would be like Napoleon making a deal with Wellington.” He went on to say that, “We can change everything in the hands of respectable people, but the existing political class must be expelled immediately.” He has called for a nationwide referendum on Italy’s participation in the European Union and indicated that while Italy will pay its debts; it might be done in Lira. Do not underestimate this man. Do not assume that Italy will go on as usual and that this is just a split between the Left and the Right because this is not the case. Grillo’s call is for a new order, a new way of doing business and a new spirit for the Italians.
If we can't even cut federal spending by 2.4 percent without much of the country throwing an absolute hissy fit, then what hope does America have? All of this whining and crying about the sequester is absolutely disgraceful. The truth is that even if the sequester goes into effect, the U.S. government will still take in more money than ever before in 2013 and it will still spend more money than ever before in 2013. So it is a bit disingenuous to call what is about to happen "a spending cut", but for the sake of argument let's concede that point. If this is how bad things are now, how bad will they be when a day of reckoning for our economy arrives? And a day of reckoning is coming. Our politicians can try to keep kicking the can down the road for as long as they can, but eventually time will run out. We can borrow our way to prosperity for a while, but in the end there is always a very bitter price to pay for doing so. I would love to tell you that there is a chance that all of this will be turned around, but the truth is that all of this whining and crying about the sequester shows that America is doomed.
Since the Fed is doing all it can to relieve the big banks and all legacy debtors of their debt obligations, it is only fair that those incumbered with student debt - impacting those who can least afford it - and which is at least on the surface nondischargeable, are afforded the same opportunity. So here is a primer for the rest of us - those who don't have $1.8 trillion in very fungible reserves holed up with the Federal Reserve. As Christopher Glazek and Sean Monahan note, discharging student debt is a black-box dilemma. While bankruptcy protocols are always complex, student debt is loaded with its own special brand of illegibility. Debtors are misled by the media into thinking that discharging student loans is impossible and shamed into treating the mere notion of relief as a form of extravagant welfare-queenism - however, there is a way (or 12 ways) to show your future life prospects are characterized by a “certainty of hopelessness.”