Despite warnings from various members of the Fed that Student Loans are becoming troublesome, we suspect President Obama's address this afternoon on expanding opportunities to go to college will be nothing but more pumping free money into a hyper-inflating (and increasingly worthless) higher education system...
A week after Obama held his first crisis photo op holding a phone while supposedly talking to Putin, he has followed up with another, hour-long conversation. Below is the official White House statement on what was said.
It would appear the Norwegian Nobel Institute is starting to lose it. Just a few years after President Obama won the Peace Prize (while mired in overseas wars), the director of the prestigious entity announced today that Russian President Vladimir Putin, accused of invading Ukraine - suspiciously un-peaceful action - has been nominated for the Peace Prize. Putin joins NSA whistleblower Edward Snowden and Pakistani schoolgirl Malala Yousafzai as a nominee for the award to be announced in October.
President Obama released his 2015 budget proposal this week...and as expected, it contained even more language about his MyRA initiative. As we’ve discussed so many times in the past, IRAs are an irresistible kitty for such a bankrupt government. The US government itself estimates that over $5 trillion is tucked away in American retirement accounts. They need that money. Your money. The US government is struggling to come up with new funding sources… and retirement accounts are by far the easiest target. Why? Because the majority of retirement accounts at trapped at big Wall Street banks, which are all de facto agents of the government. All the Treasury Department has to do is make a phone call. Yesterday’s budget announcement constitutes the next phase: automatic enrollment.
With Western condemnations rife, bailouts ready to flow, US F-16s on the ground in Poland, Crimea voting to join Russia, and allies pulling back from sanctions, we anxiously await President Obama to explain his next steps and just what will trigger them...
Below is the photo that reveals why US and EU bankers despise Russian President Putin so much
"Hello there citizen! I hope you are enjoying your day. I also hope you are enjoying your freedom from oppression that our kind, benevolent government provides. As a former lead bureaucrat in the Obama Administration, let me assure you, Washington is working around the clock to protect you and add fulfillment to your life..."
In what is becoming an epic embarrassment, the WSJ reports that the Obama administration announced today that consumers can keep insurance plans that don't comply with the federal health law for another two years, pushing a potential firestorm over cancellations and broken promises that "you can keep your health plan". As The Hill adds, the unprecedented move will protect vulnerable Democrats in the midterm elections by staving off a wave of cancellation notices and for some consumers, rather stunningly, Obamacare will not be in place for all Americans when President Obama leaves office. Sickeningly, the administration explicitly gave cover to 13 vulnerable Democratic lawmakers by saying the extension was developed in “close consultation” with those members.
With even Warren Buffett saying it's a bad idea, we can't wait to hear how President Obama will explain how his move to raise the minimum wage will create jobs and save the middle class....
“Maybe the American people or the government or whoever raises their eyebrows can say how could the Europeans be so moderate on the debate over sanctions.
Guess what? You don’t want to sanction anyone you depend on,”
It’s history in the making, sitting on the sidelines, watching the scuffle happen and roll before your very eyes. But, it’s not worth a great deal when you know what the end of the match is going to be.
For all the chest-thumping from policymakers about the declining unemployment rate and increase in GDP growth in the second half of last year, these statistics are easily misread. More telling indicators, such as private domestic demand, haven’t picked up at all. Nor would you expect a robust recovery as long as employers create mostly lousy jobs. In the horse race between the real economy and the risk of financial instability, the real economy seems to be falling behind. Financial risks are growing steadily, as we discussed in “Tracking ‘Bubble Finance’ Risks in a Single Chart.” The real economy, on the other hand, is held back by weak income growth.
With the world still on edge over developments in the Ukraine, overnight newsflow was far less dramatic than yesterday, with no "bombshell" uttered at today's Putin press conferences in which he said nothing new and simply reiterated the party line and yet the market saw it as a full abdication, he did have some soundbites saying Russia should keep economic issues separate from politics, and that Russia should cooperate with all partners on Ukraine. Elsewhere Gazprom kept the heat on, or rather off, saying Ukraine recently paid $10 million of its nat gas debt, but that for February alone Ukraine owes $440 million for gas, which Ukraine has informed Gazprom it can't pay in full. Adding the overdue amounts for prior months, means Ukraine's current payable on gas is nearly $2 billion. Which is why almost concurrently Barosso announced that Europe would offer €1.6 billion in loans as part of EU package, which however is condition on striking a deal with the IMF (thank you US taxpayers), and that total aid could be as large as $15 billion, once again offloading the bulk of the obligations to the IMF. And so one more country joins the Troika bailout routine, and this one isn't even in the Eurozone, or the EU.
What Hagel proposes is not cuts, but instead a shift in spending away from personnel and toward new high-tech weapons which are favored by and profitable to the military-industrial complex. Welfare spending is bankrupting the country. But military spending is also welfare: it is welfare for the well-connected military-industrial complex, which enriches itself manufacturing useless boondoggles like the F-35 fighter. A proper foreign policy would mean a strong national defense, but a huge reduction in interventions and commitments overseas. Why are we stirring up trouble in Ukraine? In Syria? In Africa? Why are we defending South Korea and Japan when they are wealthy enough to defend themselves? A proper sized foreign policy would defend the United States instead of provoking the rest of the world.
The magical thinking highlighted in two charts, as WaPo reports; in his budget request, Obama projects public debt as a percentage of gross domestic project falling to 69% by 2024, while the CBO has it rising to 79% - a difference of 10 percentage points, or roughly $2.7 trillion. As WaPo notes, the likelihood of this scenario unfolding... zero.