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There are two choices before us:

One, we tax the top 1% and live the quality of life we deserve…..

Two, we continue the tax cuts, allowing the top 1% to not pay their fair share in taxes, and continue the quality of life we’ve suffered since 2001..

Simple microcosmic view: find a pothole in today’s state road system… You can’t, it’s covered up with stimulus funded new pavement… Nice, crisp, sharply painted blacktop, as far as the eye can see….

Compare that to the Bush Era… Potholes galore and getting them fixed was like pulling teeth…

Now pull back and look at your entire lifestyle with all it’s moving parts…. first see one where everything outside your control is operating smoothly like clockwork ( a Visa commercial comes to mind), and the other where it is all cacophonous and catastrophic…..

So, in which type of lifestyle do you prefer to live?

Decide and vote.

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I’m printing this article in full: tell me, where in America can you find journalism this “fair and balanced”?

Another crisis in the horizon?

A | A | A |
Winarno Zain, Jakarta | Tue, 07/19/2011 7:00 AM A | A | A |

It seems the world economy has faced endless threats preventing it from sailing smoothly into a strong recovery this year.

First there was the Greek debt crisis that jolted several major banks, and then a political uprising in the Middle East that pushed up oil prices, and then a tsunami in Japan that disrupted manufacturing activities in many countries.

The world economy has not fully dusted off the adverse impacts of these three events. Yet another headwind is looming large on the horizon. This time it is the possible default of the US government of its debt on Aug. 2, if the US Congress fails to approve an increase to its debt ceiling as requested by President Barack Obama. By that date, the US government debt would have reached its maximum allocated limit of US$14.3 trillion.

The current negotiation between representatives of Democratic and Republican parties on the US budget deficit has run into a deadlock, and so the possibility is real that there won’t be any substantial agreements reached, since the dateline is nearing. Major rating agencies such as Standard and Poor, and Moody’s have warned they are ready to downgrade the US government debt rating from top grade AAA.

This would be the first time in 90 years that the US government debt has been downgraded.

It is not hard to imagine what will happen if by Aug. 2 the US government has exhausted its credit ceiling and can not get additional debt to pay for its spending needs.

The US government would have to curb its spending, and because some of these relate to payments to government employees, pensioners and other social benefits, this would strike a severe blow to the consumer spending that is so essential to the US economic recovery.

With debt default and credit rating downgrades, it would be difficult for the US government to get loans. Faced with increasing risk, investors would ask for higher returns for US government bonds. This would push interest rate higher, further depressing the economic recovery.

The US dollar would plunge, triggering a surge in commodity prices and another round of inflation around the world. A deadly combination of inflation and economic stagnation could spin the world economy into a tailspin as happened in the early 1970’s.

How would this worst case scenario affect the Indonesian economy? As capital flows out of the US, investors have tended to seek safe havens elsewhere. Commodities, especially gold and oil, would be their first targets. Emerging markets could be the next destination of this capital flight, depending on the assessment of investors on the strength of its economy and their vulnerability and exposure to the US economic fallout.

But financial crises always result in a loss of confidence and produce negative sentiments in the financial markets. They put financial markets into disarray, and as investors panic, capital starts flowing out of emerging economies.

During the global financial crisis in 2008-2009, capital moved out from emerging economies back to the advanced economies. At that time, the US government bonds and commodities like gold were considered safe havens.

If the US government defaults on its debt payment this time, the question is will the situation change? Will the US government bonds still be considered a safe haven for investors? If not, then where else will they put their money? Or maybe they would prefer to keep their money in the same place and not move it anywhere. If so, the Indonesian economy could get some benefit and may not have to face another shock.

In the longer term, however, the situation may change. No country is immune to the negative ripples of a US economic crisis. As US imports plunge from weakening domestic demand, exports from emerging countries will also suffer. The extent to which these negative impacts affect each country will depend on their trading and banking exposure to the US economy.

What is disturbing about this debt talk is the use of this debate as a political game. This is especially apparent in the Republican stance.

Economist, market analyst and CEOs of financial institutions and even the IMF itself have warned that if Congress fails to raise the ceiling of the US government debt, the world economy would slip into deep recession.

The Republicans did not fully accept Obama’s proposal to raise the debt ceiling. They only agree on a smaller number, but even it was given with some conditions. The Republicans asked Obama not to raise taxes, especially for the wealthy, and Obama should cut social spending, a sacred cow for the Democrats.

By using tit for tat tactics in the negotiation and by seemingly ignoring the impending consequences and dangers, the Republicans were trying to push Obama into an intricate political dilemma.

If the US economy slip into another crisis, economic contraction would be inevitable. Corporate bankruptcies would spread, and jobless rate would surge.

A presidential election is still slightly more than one year away, and Obama’s reelection prospects are solid. But his popularity rating is highly dependent on the unemployment rate. That is why the Republicans think the only way for them to erode Obama’s popularity now is by pushing the US economy into crisis.

As the stakes are high, the two political parties should temporarily set aside their ideologies and adopt a pragmatic stance for the interests of saving the world economy from another catastrophe.

President Obama demonstrated his willingness to compromise his political ideology during the global financial crisis of 2008-2009. Being a Democrat, Obama’s political inclination is generally anti-big business.

Obama realized that it was reckless lending by some big banks on Wall Street that triggered the financial crisis. But he also realized that saving these banks from bankruptcy was key to saving the world economy from further disaster.

His decision to pour $800 billion of taxpayer’s money to bail out these banks was hard to swallow by his fellow party members, but it worked. Now it is expected that the Republicans will be willing to do likewise.

The writer is an economist.

I really didn’t know..

What happens when Republicans can’t get their act together, and close our government because women won’t let them into their uterus?

“Uh, … can I go into your Uterus?”

“No…”

“Damn it, bitch! I’m shutting down the government!…”

Here is the list going out of those who stop getting paychecks just because the Republicans retaliated for not being able to go up into a woman’s uterus….

There is no total at the bottom so I added them all up… 350,564… All human beings. most supporting families including children.

Ok, so what’s the average wage? The average wage of Federal Employees is $81,258….

Now, I’ve got a problem with average wages, ever since I learned that the average net worth of a bar’s patrons, jumps up by $3 billion every time Bill Gates walks into a bar…

So I will take for calculative properties only, a lesser figure, $50,000 to judge the impact. (I know when I was starting out, Federal wages weren’t $81,258!, how I wish they were!)

350,564 human beings… On a map you would have to block out the two lower counties of Delaware to show the impact of how many people would be without paychecks… (157,741 {Kent} + 192,747 {Sussex}…. Imagine, just driving down to Fenwick Island next time if all those people didn’t have jobs!… Of course we could accept that if it were due to an atomic bomb that had caused damage…

But to be caused simply because some Republicans couldn’t go up a woman’s uterus?

All those people without jobs, for a uterus? The immediate loss to our economy of $17,528,550,564 a year…. Hmm, per day, that would be…$47,990,556… 3 times the entire daily economic activity of Dover, Delaware, the 235th largest metropolitan center in the United States…. {$6,052,000,000 divided by 365.25}

This ladies and gentlemen, is the current state of our country, and will be, as long as no one dares challenge conservative values for what they are.


Courtesy of AmericanRhetoric

“They remind us that where free unions and collective bargain are forbidden, freedom is lost… they remind us that freedom is never more than one generation away from extinction… You and I, must protect and preserve that freedom here, otherwise it will not be passed on to our children, and will disappear everywhere in the world. ….. How high is that price of freedom?…..”

Ronald Reagan