“I am thankful for laughter, except when milk comes out of my nose.”
Commentary & Analysis
Clueless Beyond Belief Awards
Note: Apologies if this screed sounds harsh. But this stuff isn’t rocket science, yet our politicos everywhere can’t seem to do the right thing, even when the right thing stares them in the face.
#1: It has to go to Timmy “Tax Cheat” Geithner. [And of course an honorable mention from the #1 spot goes to the Fed; but we’ve beaten that dead horse]. Mr. Geithner is the point man at the US Treasury who told us there is no way S&P would downgrade the US; yup, another great call. Knowing his past, should anyone be surprised? And why should it be a surprise S&P downgraded the US anyway? Thanks to politicos (on both sides of the isle) who buy votes, and payoff campaign contributors, and force-feed numerous other moochers who suck up to the teat of government, the US fiscal condition is a train wreck in the making. Will this shot across the bow lead to real change in the course of government? I am talking about lopping off all kinds of useless stuff, like the Transportation Department, the Energy Department, the Department of Commerce, and most of all, the most oxymoron-named of US departments, the Department of Education. I could go on into infinitum, but you know exactly what I mean. Or do we get the same demagogy, primarily from the left, who want to keep their moocher constituency intact? Good ideas continue to flow from the left: demonize producers who create real wealth and keep saying we need more taxes. This shows how brain dead these people really are. Sad!
Time to belly up to the bar boys, as S&P’s pencil is sharpened for the next downgrade. Mr. Obama, maybe you need to stop hip-hopping in the Whitehouse and start getting real! And getting real doesn’t come in the form of pulling an FDR and confiscating the only safe haven seemingly left–gold. Gold bugs have to love these guys. This is what you call parabolic! Congrats FIL, you nailed that one!
#2: Eurozone Leaders. Ladies and gentleman, there is a major structural flaw in your plans to centralize everything that moves across Europe so that you can tell everyone there exactly how to live their lives (and think of course); it’s called the single currency. Feel free to keep throwing good taxpayer money after bad. You have done nothing to solve the core problem which is: weaker periphery economies will never be able to compete with Germany (and some others in your so-called zone) as long as they are operating under the straight jacket of the single currency. And if they cannot compete, they cannot create wealth. And if they cannot create wealth, they cannot pay back the taxpayer money (from everywhere now that the vaunted IMF is on the case) you boys and girls keep throwing at the problem. Let each country operate on its own strength or weaknesses based on its own sovereignty; and tear down all those buildings in Brussels; and send your enormous staffs home to do some real work. Contagion may do the job for you.
#3: Chinese leadership. Seriously, these guys have to be kicking themselves in the butt. They have had plenty of time to make some real change to their economic model (the global rebalancing thing), but instead they remained glued to a model that requires huge dependence on the West in order to take all of those goods they so efficiently produce in huge quantity. A big thank you for not making changes has to go out to the powerful Princelings who are reaping billions from the existing model, evidenced by the incredible number of billionaires in the Commie Mecca. Though many inside the Chinese leadership are quite aware of the dangers of the current path, and have been aware for years, little has been done to transition to a more balanced approach because of the powerful political blowback to real change. And now, with external demand from the West about to evaporate a la the financial markets feedback to destroy real market collateral values, China’s danger meter is in the red zone. You can dream of decoupling all you want–it ain’t happening in this cycle.
Batten down the hatches! Our guys are about out of stimulus bullets and we already know that monetary stimulus, a la Quantitative Easing, has proved a total failure for those who live in the real world, not the financial one.