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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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I'm thinking it's not a big reach either. What exactly do the police have to do with the protest? Other than enforcing the law and making sure the place doesn't turn in to central London or Tahrir Square madness with looting, thuggery, and property destroyed.
March this protest over to the white house where it truly belongs and I'm on board. Couple other questions. How does this end? Does the winter chill send the protestors for the exits? Or is there a political party and an agenda that results? Because I'm still not sure what the demands are. Is it ending capitalism? Wall St. has benenfited but there is at least equal blame in Washington DC.
Your statements mark you as a very naive person. I am all for protesting the banks and what they have done, ending the Federal Reserve.
Perhaps you are for what many of them have expressed, I am not.
Who do you know who can spend days and nights sleeping in a park? Students would fail their classes. Workers would lose their jobs. Who are these people?
We knew who most of the tea party was, retired people and their kids and grandkids, workers & students after work and on vacation or personal day off.
They couldn't protest for weeks, they have lives. I think you should go down there and meet some people, see if they are who you think they are.
I have read enough interviews, seen enough videos. For every decent person, there seem to be 20 losers.
Yes, I am afraid, afraid of what a mob of people with nothing to lose can do to the movement for sound money. They can bring down martial law.
I am embarrassed that you were an Infantryman but can't see what is going on.
Or are you working for DoD right now as a government poster?
Now that starts to make sense.
You know, Moe, I was once niaeve and idealistic....long, long ago.
I heard the same garbage from ignorant, fearful, petty, little men when I marched for freedom & civil rights during my college years. The same mentality of hate and bile spewed forth against us "dirty, godless hippies" when we marched against the war. Never mind that I worked my way - all the way - throught college....and wore a coat & tie while doing it. Never mind that my first 2 years were spent with thoughts of the ministry. And nevermind that I hated the war. When called, I went and I did my job well.
The haters and name callers did not know what they were talking about then, and you don't know now. None of us knows yet where this will end, but I think it is important to be on the right side of history. We are undergoing a paradigm shift. The scale of the looting of the treasury is unprecidented. The degree that the government has been hijacked is glaring. The way the table is stacked against the common man is obvious to anyone who is awake. The Internet has changed everything, too, and our ability to discover what's going on has increased dramatically. Systemic change is coming with this new tide, but to pick out single instances of common disgust and then try to demean the entire movement is the work of either a hater or a propagndist.
....and lastly, the thought of me posing as a govt poster is pretty funny. This niaeve old man has been running a smalll business for 35 years. Employing others. Paying taxes, health care, pension plans, and dealing with countless numbers of hazards and changes along the way.
But you are welcome to continue trying to educate me, Moe. After all, I fought for your right to do that, embarrassing as it may be to you.
"I have read enough interviews, seen enough videos. For every decent person, there seem to be 20 losers."
Un huh.
You either have no idea what you're talking about-- or are indeed, the worst kind of stooge with Nazi bile that has no interest in reality.
For those interested in knowing one of the main motivations of OWS, this Dylan Ratigan video says it all: http://www.youtube.com/watch?v=qI_P3pxze5w&feature=player_embedded
For the origins of the 99% movement initiated last year by AmpedStatus creator and frequent Max Keiser guest, David Degraw, unlike some, a true American patriot, see:
http://ampedstatus.org/a-report-from-the-frontlines-the-long-road-to-occ...
The young person Moe was talking about was taking a dump on a NYPD police car. Your hero, I suppose.
Even if OWS is not in Obama's back pocket yet (which I doubt), Soros, the Unions, Move On and the other Lefties have the money and manpower to make sure that happens.
Do you really think the White House is going to let a crisis go to waste?
The Tea Party was to Republicans what Occupy Wall Street is to ____.
I have no doubt attempts will be made by many politicos to run to the front of the crowd and pretend to be the leader ... so the real question is ... do OWS participants want a leader ... or do they want hangings and representation?
I think Democrats are losing control of their base and just before an election year. I would be thrilled to see an OWS movement put butts in congressional seats, team up with Tea Party candidates, and starting hanging these fucking scumbags (after a hasty trial of course). If we could net RP as a president for that show, then it would really be on ...
Once the house has been cleaned, Americans could finally get back to raising our families, working, and arguing about social issues like the good ol' days.
Regards,
Cooter
The problem with Tea Partiers (I used to consider myself one) is that they generally don't emphasize ending the FED, and are predominantly behind the "war on terrorism"....they have been co-opted by the neocon elites, or are just to naive and ignorant to understand the nuanced REAL reasons for the wars and 9/11. Most tea partiers I know think Ron Paul is crazy and would rather sit home than vote for him if they had no other choice. I just can't see them uniting with OWS. Different breed....
O Amerika you are royally fucked . No Vaseline. Of course sheeples will always be ignorant in the USA watching stupid TV shows.
As I've posted before and elsewhere, Adbusters is very sophisticated and have a lot of the right answers to the big questions. They know exactly what they are doing. You will start hearing demands for a new type of economics soon. Anyone can see what's coming by reading almost any back issue of Adbusters so this is no mystery, it's just that mainstream journalists and most bloggers are too lazy actually read the magazine and report on it.
And yet...
Adbusters is not even American!
It's Canadian - based in Vancouver, British Columbia!
And funded by who...... of course, Geo. Soros, the JooNazi.
Good stuff Bruce. We expect a full report on your return from the OWS rally.
Thanks for going downtown and doing some ZH sleuthing.
"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."
Are the the OWSers organized enough or coherent enough to turn that information into a rallying point? If they can, it will show to what degree they have "gelled" as a movement. It will also give an indication of momentum and direction.
Looking forward to your next posts.
8 days until Black Monday II
The Occupy protesters are pawns to justify the coming controls that will be placed on everyone. It's for your own good, don't cha know.
Bon chance, Bruce.
And Mr.Silver leaves Washington to go to work for a think tank called Third Way...to navel gaze on subsidized solar and what not.
Beware the thugs in purple shirts, and stay safe. Libs go wild far too often.
The thugs are wearing white this year...
yes, she is.
"There is nobody in this country who got rich on his own. Nobody." ... Harvard Professor and U.S. Senate candidate
http://www.youtube.com/watch?v=htX2usfqMEs#t=0m48s
Just like Al Jazeera has often had its imprisoned journalists, ZH may soon have a front page box devoted to 'Release Bruce Krasting! ...'
If you get arrested, remember economist Martin Armstrong and his many years in jail with no trial or conviction, the bogus US fascist 'contempt of court' ... people in the US held as long as 14 years for such ... you are an increasingly worthy target, Bruce, given your ZH journalism ...
Though you still are I think a little naive in having too much faith in US 'elections', the fake Democratic - Republican split that is really, as Gore Vidal said long ago, a one-party system ... these things, like the budget-ceiling impasse, are really just a game.
The plan there with the 2012 stimulus is more short-term thinking, the oligarchs basically trying to buy just one more year or two ... plus another item to serve the pretence the US elections are real. The US Presidential 'winner' in 2012 will be whoever the oligarchs want to win.
And don't worry about your home continent Europe, we're all fine, everyone here bought default protection from Dexia Bank as part of their nearly 1 trillion derivative book ... er ...
Fake elections with contrived results.
Computer expert testifies Florida elections fixed
http://www.iwilltryit.com/fixed1.htm
Kasting is perfectly safe. He says we can't walk away from the IMF, he's clearly concerned with finding a way to prop up the debt system - at least until.....? The ones who need to watch their backs are the likes of Rockwell and Casey, who advocate repudiating all sovereign debt. That is the final solution and the only way to prevent endless generations of debt slaves.
'contempt of court' - And here of late the 'court' has worked overtime to be contemptible, so what do they expect?
"The Republicans and the Democrats. It's Tweedle Dee and Tweedle Dumb...There's not a dime's worth of difference between the two."
–George Wallace, c. 1967-68.
Old George and his wife, Mizz Lurleen, were wrong about a lot, but he had it right on this one. Way back then.
Don't forget his pal Curtis.
Al Jazeera's BBC origins
Don't forget to pack your helmet and gas mask.
Remember, its NY, only the gestapo gets to carry guns.
There is a reason it's called the Empire State.