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Politics, Money and OWS
The head of the IMF, Christine Legarde dropped a big bill on Tim Geithner’s desk after the market closed on Friday.
From the WSJ article:
The IMF could offer short-term lines valued at roughly $50 billion combined to Italy and Spain.
The credit lines for those two countries could double to roughly $100 billion combined once their IMF contributions increase next year.
It’s clear that Lagarde is after the ever-elusive leverage factor. In this case “creative” and “firewall” means SPV.
"We have really tried to be creative about our facilities and instruments."
The lines could be offered to a group of countries, which could "Install a firewall around the core of the system to prevent or mitigate the propagation of virulent shocks."
The new credit lines could be used cooperatively with regional financing programs such as the European bailout program.
Really? The IMF is going to be doing some leveraged lending? Bailout money? For Spain and Italy?
The USA share of any IMF bailout is 25%. So Christine thinks she can get Geithner to step up for 25 large. And that would be just for Italy and Spain. Forget all the other troubled EU countries that would be able to borrow under this facility. The USA share of the IMF bailouts could easily exceed $100 billion.
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I never thought Obama’s “Jobs Plan” had much of a chance of passing. After reviewing the report by the CBO on S. 1549, The American Jobs Act of 2011, I’m convinced this legislation will never see the light of day.
This legislation is being sold as a jobs creator. It’s being sold as an economic stimulus. When you look at it, it’s obvious that this is an attempt to swing an election. It has nothing to do with good economic or fiscal policy.
The folks at the CBO look at things on a fiscal year basis. As a result, their analysis suggests that some of the “benefits” of the Bill will extend into 2013. I looked at it on a calendar year basis. This chart shows where the deficits (stimulus) and increased taxes (contraction) take place.
Clearly, this is a one trick pony. There is only one reason why the President proposed this “jobs” bill. He wants to get reelected. He thinks this will help. If the law is passed, it might just do that. The average family would get about $1,500 in their pocket. There would be signs on roads and schools that are being repaired that the work was being done on account of Obama.
That’s precisely the reason why the Bill is D.O.A.
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I’m not at all sure what should be done with the US economy, nor am I sure what the right path in Europe should be. I am, however, certain that if some very dramatic steps are not taken over the next two weeks, the financial system in Europe is going to implode. I’m equally convinced that if the US does not get a meaningful stimulus in 2012 there will be a hell of recession next year.
Obama and Geithner have pushed publicly for “Bold Action” by the EU. That means they have to deliver on the US cost of this. America can’t walk on its obligations to the IMF. If it did, Europe would crumble. At the same time, O & G will fail in their effort to get a spending bill from Congress. So I see a scenario where The US is forced to participate in a EU bailout, while the US economy gets no support, and therefore withers.
I’m off to see the Wall Street protesters today. I expect there will be a big crowd. The press has been maligning these protests. The suggestion has been that there is no central theme or objectives of the OWS movement.
The OWS protest has legs at this point in history. The failed debate on the stimulus and a USA blank check for the IMF is exactly what the protesters need. A rallying point. I think they will get what they need/want to take this to the next level. It will happen over the next two weeks. As a result, the OWS movement will go nuclear.
I wouldn’t be at all surprised if it ends with violence. There are too many cops and way too many angry people. Soon they will have something to be really angry about.
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What are you talking about? Someone posted the bankers never should have made the loans. CRA/ACORN/Community organizer lawsuits in Chicago by you know who years ago forced banks by law and lawsuit to make loans to people who could never repay. Doing a credit analysis on the borrower became "racist."
Why did the owner of the park get a $168 million loan from Obama's DOE? This is all ACORN/SEIU/Marxists/Ayres/etc. Obama is looting the Treasury and this is all smoke and mirrors to distract you. PS: I loathe the Fed and the banksters. All the banks plus GM and cities and states should go through bankruptcy court. The trillions looted when to his cronies and lib states to keep govt union "employees" on the gravy train. Wake up.
I had a thought today:
I know of the law to force lending. No debate there.
But since the FED makes money from loaning, and they definitely use politicians as their puppets, wouldn't it behoove their bottom line to "encourage" the govt. to force lending, giving the banksters a perfect excuse to create all sorts of exotic products to pass on down the line?
No matter how country fares, the banksters (central ones) always come out rosy, one way or another!
Lastly, the banksters are globalists, and their end game is global collectivism and serfdom for the masses, and oligarchy for them and their buddies. They LOVE socialism for the masses, b/c it enslaves the masses, and necessitates more control for them!
What a beautiful world we are living in!
HEY FREDDIE!!!!
Got a question here: Why is your track ( http://www.zerohedge.com/users/freddie/track ) full of OWS ?
Do the other topics interest you so little?
:-)
What does it matter? The subject matter is near and dear to him and a lot of us that are trying to stop this country from going down the toilet. Read, investigate and learn.
Attn: BLOOMBERG CINEMA!
I said this upthread, but this is the Tea Party on the left. Michael Moore ain't running shit, no more than Palin runs the Tea Party. They are just showing up pretending it was their idea and thus their crowd.
It is up to the crowd to decide, and I think the jury is out on that one for a while.
Let's spend more time observing and less time fitting the movement in a nice, neat, idealogical box.
Regards,
Cooter
>> Michael Moore ain't running shit, no more than Palin runs the Tea Party. They are just showing up pretending it was their idea and thus their crowd.
Michael Moore showing up and Sara Palin being paid by the Tea pary gang, on more than one occaision, are very different matters. The Tea Party crew was allied with, and showed allegance to, Palin, Beck and all the rest of the right wing extremists. Certainly the OWS group has done nothing close to that.
You rock Bruce. Hope to see an article from you on your day at the OWS.
Too little, too late, Mr. La'Tard(e). Shove your stupid SDR's up your own ass.
The 99% OWS protesters have it right!
The BANKS are the PROBLEM!
The banks are only a problem because legal tender laws give them a monopoly on currency distribution and interest rates and because the government gives your hard earned money to problem banks when they should be allowed to fail.
GOVERNMENT REGULATION is the PROBLEM.
You are both right. It is the banks and government that are the problems. The government is a problem because it is just a puppet right now with banksters and corporate elite pulling the strings.
No matter who pulls the governmental strings the majority will suffer to support an entitled minority.
Government is the problem. Individual sovereignty is the only reasonable and effective demand.
Hello bipolar disorder. It's XOR! XOR! XORXORXORXORXORXORXORXORXORXORXOR Did i mention already XOR? XORXORXORXORXORXOR Hello, i'm a typical mentally retarded modern human, i can only think in 0 XOR 1! I'm the peak of evolution!!!!!!!! Weeeeeeeeeeeee!!!!!!
Now, where did i put that poleaxe....
Well you've convinced me.
Isn't this all going according to a plan or at least is expected by the elite?
This type of cause-effect behavior has been occurring for centuries, no?
The American People are Vitally Interested and Engaged in the Critical Problems Facing this, the Greatest Republic History has Ever Seen. Why, right now, I am sure that in Living Rooms all across this Great Country, Nuclear Families are preparing to go to their Respective and Respectable Houses of Worship, but first they are fixated on the Lively and Critical Discussions on Meet the Press or Fox News Sunday.
No, WAIT! IT'S A NEWS ALERT!! LOOK OVER THERE AMERICA! LOOK!! LOOK!! It's 100 cute adorable PUPPIES, right there on the STAGE of Dancing With the Stars!!! WHo else is there? It's Not Possible!! It's Amanda Knox dancing with, COULD THIS BE POSSIBLE(??), MICHAEL JACKSON, each of them sumptuously dressed in red, white , and blue, surrounded by the puppies!!! Don't touch that dial. This is an important moment, America!!!
Actually, they would learn more about our republic watching "Dancing" than they would MtP or FNS....
It is all such prescripted BS that I cannot bear to watch them THINK they are fooling me!
Plus, puppie are much cuter than those bastards!
We Are the 99%
http://wearethe99percent.tumblr.com/
"They have no goals"
Unfuck the world
"See, no goals! NO GOALS!"
Unfuck the world.
"Just a bunch of <shiftless filthy hippies | ignorant redneck teabaggers | perjorative meme of your choice> WITH NO GOALS!"
You have to remember, modern media is about rich corporations, foundations and organizations paying rich media moguls to train the middle class to loathe the poor.
My guess about the no goals thing is that they actually want much more than they can demand yet. If they demand too much too soon, they will wreck this. I suspect the no demands is all about that it is really a major revolt that will change everything, and people aren't ready for that yet. They must wait until many more are on their side before asking for the really country changing stuff.
To my surprise Barry Ritholtz has featured both Banzai and GW in recent days on the OWS theme
Monopoly: Occupy Wall Street edition!
SPREADING LIKE WILDFIREThat Monopoly board is frickin' awesome.
Paging William Banzai! Paging William Banzai! When are you going to start selling this game board?
Just make sure he is well regulated and taxed if he intends to make a profit.
"I’m equally convinced that if the US does not get a meaningful stimulus in 2012 there will be a hell of recession next year"
This line really peeves me. We've hidden one hell of a depression for 3 years with 1.6 trillion/year in borrowed spending by the US Gov't. Does anyone realize that $1.6 trillion adds about 12% to the reported GDP. I thought GDP measured the "productivity" of a nation. Borrowing money with zero added production is not productive and thus makes the reported GDP numbers BS!
What this country needs is to stop this suicidal borrowing and spending. This will expose the real state of the US economy to even the biggest Ostrich. This country is broke and we need to start living within our means as a nation or there is going to be one hell of a financial collapse that will bring untold misery to everyone(rich and poor). Kicking the can only makes the day of reckoning worse.
We need to educate the country to the situation, come up with a sound plan, and everyone must do their part.
As far as this OWS mob ending in violence? I guarantee that it will end in violence, all mobs do.
Crazy thing is Ron Paul said he wants to cut $1trillion in his first year in office. Sounds amazing, until I realized that if obama's reelection bill gets passd the deficit for next year will be $1.8 trillion.
While I'm a huge Ron Paul supporter I realize congress has made any change to current spending near impossible. We almost have to wait for the system to crash and let Ron Paul be the first president of the reset.
Another scary thought is that hitler got elected after Germany went through a financial crises. My gut feel is that Ron Paul will do what he says, but if any other candidate makes the white house, they now have the power, slowly gained from from Nixon through to Obama to run this country like a dictatorship via executive orders and congressional 'special' committees. Obama is creating a class warfare by speaking out against 'millionaires and billionaires' (while I might add he says $250k is also a millionaire), it is similar to hitler scapegoating Jews/ gypsies and gay people for Germany's economic and social issues of that day.
You need to look much further back than Nixon. Even before FDR. Look at Wilson for example. Got us into WWI and jailed anyone who spoke against it.
Not to mention the lovely year of 1913! FED and taxes....nice touch, wasn't it?
His closest advisor, Edward Mandel House, (aka "Colonel" House, was an uber-malthusian global government creep! And a con-artist, to boot. I read that he had the power of persuasion like no one else.
Abe Lincoln did the same... suspended Habeus Corpus, jailed dissenters, no trials, etc. Same shit different day.
BUT, that being said, does not in any fucking way justiify such.
Okay. You're right. In many respects and for many people there has been no recovery.
We get numbers thrown at us. GDP, this and that. I use those numbers as a benchmark. So does everyone else. The measuring system we use is a lousy yardstick.
Rather then say,
"We were in a weak recovery, and now the economy is losing ground".
I should say,
"Things have been bad, they're going to get worse."
b
Voted down for voluntarily using 'a lousy yardstick' as 'a benchmark'. And for justifying that with 'So does everyone else'.
I always enjoy and appreciate your articles, Bruce, but this stuck in my craw too. Using numbers that we know are propaganda without any qualifier to that effect should STOP being common practice.
Bruce, you are correct in thinking things will be bad, in fact worse, without a stimulus. However, that is the case when you remove government spending. There will be some hard times before the real economy can come back. All this kicking the can down the road has made it all much worse in the end. We need to cut government to the constitutional limits or we will be slaves for the next few generations, if not forever. They have nothing good planned for the people.
Best defense of the "no central theme" argument against OWS that I've seen: what is the central theme or objectives of U.S. economic policy, Congress, the administration? What is the central theme or objective of the European governments, the euro, the IMF, FED, ECB, etc.?
As someone pointed out earlier, silence seems to be working out pretty well.
EXACTLY. These corrupt systems (You forgot the ESF) are necessarily complex. Asking someone to lay out ONE "demand" in the face of this web of bullshit is just plain ignorant. Just because the problem is huge doesn't mean people chipping away at the mountain of lies and educating others (in he street, face to face) isn't productive. If nothing else it will speed the inevitable collapse along.
The game is all about the 100s of trillions of derivatives. There's really no money left to pull another AIG rescue. IMO that it will be Dexia or a French bank that will start the domino tipping point, not Greece. OWS has been co-opted to be the eventual excuse for martial law. I'm sure that a Kent State moment has already been planned.
Obama scolds the banks out of one side of his mouth and says yes to whatever they demand out of the other. That is what the OWS crowd need to realize.
The OWS crowd does realize that.
You may think they're a bunch of left-wing Obama supporters. If so, you're wrong.
They may not support him now but they put him office in '08. They showed up at his rallies for "free" healthcare. They showed up at his rallies in support of corrupt unions. They showed up at his speeches for more government handouts to bankrupt municipalities. They cheered him on in his support for even more money for failed education.
They don't support him now because he hasn't moved fast enough in the progressive's march towards facsism and wealth redistribution.
These idiots are not going to support your darling, Ron Paul. They may like his foreign policy of capitulation but smaller government? Yeah...right.
"Capitulation"? Yah....right!
I don't know. I supported Obam in '08 just like you said because of healthcare. Health care is so broken in this country. It costs ridiculously more than it should. The profiteering in medicine is so extreme. I do realize their are other solutions to that than socializing medicine, but medicine is at a breaking point and needs some solution.
Now, however, there is no way I would vote for Obama again. Ron Paul is the only choice that seems viable, and even he is not good enough. He has taken plenty of pork back to his state. But, don't think the protesters won't vote for Paul. They just might.
Ya can't fix stupid. And you are stupid.
Broken health care points to a broken job market. Great paying jobs create great health care plans. If you trace the beginning problems with health care it began when salaries were no longer keeping up with the rise in health care costs. It is my belief that the globlist's have pushed so many jobs overseas that we no longer can afford to take care of our families and have become ever more dependant on government. End the free trade bs with China, India, and others and you will be surprised how much insurance you will be able to afford.
Trying to put labels on the demonstrators and lump them into one big "they" tells me you clearly just don't get it. Go find another fireplug to pee on, Dog.
Hey 11b0 Here are some of the 'theys' for you: George Soros, Move-on .org, leftist college profs, Micheal Moore, Keith Oberman, Sciu, govt fed zombie college losers. Dog gets it, you don't, fireplug.
Still caught up in the right/left thought process that gets us nowhere. Labels, labels everywhere...not a brain cell in sight.
You need to stop "believing" and start learning. This is just beginning....and no one is in control, no one knows the outcome.
The learning you are talking about won't start until your friends open up their re-education camps.
In this case the enemy of my enemy [the fed & tbtf] is not my friend. This is astroturf. There may be a few good people down there, but it was organized and supported by all the wrong folks. In DC they are paying illegals to march a picket line at the OWS, with a gringo boss. What more do you need to know? Does anyone HERE think the OWS is really against the TBTFs and the Fed if their employees, Obama, Pelosi, Reid, all give the OWS encouragement and a wink?
How are they "speaking truth to power" when their bosses ARE the power?
Van Jones and Fat ass Moore showing up should have been everyone's clue.
What summed it all up for me was some degenerate shitting on the side of a police car. Think he was tea party? Think he has ever had a job in his life? Think he's a veteran?
He's a spoiled bored rich kid serving as a useful idiot to TPTB.
Once the Tea Party was rocking along, didn't Palin and Perry (among others) pretend to be leaders?
Don't conflate a movement with politicos attempt to coopt it, at least not yet.
I don't care if they are left leading, I care that they want to hang bankers (legally in court of course). Let's all rally around something we can agree upon.
Regards,
Cooter
Excuse me, Moe. I had no idea you were omniscient. What great powers you have, to be able to look at some young person on TV & know he never had a job, never served his country, is a spoiled rich kid, and a useful idiot.
You can pass judgement on a movement in it's infancy. A movement involving tens of thousands and growing exponentially....taking on a life of it's own.
Or maybe it's you who is the useful idiot. Maybe it's you who feel threatened by the awakening of the 99%.