US Is in Even Worse Shape Financially Than Greece
13 Jun 2011 By: Jeff Cox
CNBC.com Staff Writer
When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries...
Pimco’s Bill Gross told CNBC Monday.
Much of the public focus is on the nation’s public debt, which is $14.3 trillion. But that doesn’t include money guaranteed for Medicare, Medicaid and Social Security, which comes to close to $50 trillion, according to government figures.
The government also is on the hook for other debts such as the programs related to the bailout of the financial system following the crisis of 2008 and 2009, government figures show.
Taken together, Gross puts the total at “nearly $100 trillion,” that while perhaps a bit on the high side, places the country in a highly unenviable fiscal pposition that he said won’t find a solution overnight.
“To think that we can reduce that within the space of a year or two is not a realistic assumption,” Gross said in a live interview. “That’s much more than Greece, that’s much more than almost any other developed country. We’ve got a problem and we have to get after it quickly.”
Gross spoke following a report that US banks were likely to scale back on their use of Treasurys as collateral against derivatives and other transactions. Bank heads say that move is likely to happen in August as Congress dithers over whether to raise the nation’s debt ceiling, according to a report in the Financial Times.
The move reflects increasing concern from the financial community over whether the US is capable of a political solution to its burgeoning debt and deficit problems.
“We’ve always wondered who will buy Treasurys” after the Federal Reserve purchases the last of its $600 billion to end the second leg of its quantitative easing program later this month, Gross said. “It’s certainly not Pimco and it’s probably not the bond funds of the world.”
Pimco, based in Newport Beach, Calif., manages more than $1.2 trillion in assets and runs the largest bond fund in the world.
Gross confirmed a report Friday that Pimco has marginally increased its Treasurys allotment—from 4 percent to 5 percent—but still has little interest in US debt and its low yields that are in place despite an ugly national balance sheet.
“Why wouldn’t an investor buy Canada with a better balance sheet or Australia with a better balance sheet with interest rates at 1 or 2 or 3 percent higher?” he said. “It simply doesn’t make any sense.”
Should the debt problem in Greece explode into a full-blown crisis—an International Monetary Fund bailout has prevented a full-scale meltdown so far—Gross predicted that German debt, not that of the US, would be the safe-haven of choice for global investors.
Publicado: 06-13-2011 07:42 PM
NUGENT: Obama couldn’t run a lemonade stand
Big-government solution to economic woes always backfires
By Ted Nugent
The Washington Times
June 15, 2011
The Obama administration has mindlessly flooded the country with hundreds and hundreds of billions of federal tax dollars. The government gurus claim the reason for opening the federal-money floodgates was to jump-start the sluggish economy, which was strangled to begin with by Fedzilla’s housing policies - or lack thereof.
Just as you would not pour gas on a fire in hopes of putting it out, infusing more than a trillion taxpayer dollars into the economy has not and will not work to put the economy on the path to prosperity. An artificial economy cannot be repaired with more artificiality. Who doesn’t know this?
President Obama’s economic and social engineering has been a flop, a disaster. The economy continues to sputter, gag and hemorrhage; unemployment and underemployment are getting worse, not better; housing prices continue to plummet; the dollar’s value is shrinking; and our debt is suffocating any hopes of a long-term economic recovery. Keep the Titanic on course, captain.
Dumping more than a trillion dollars into the market and claiming to want to stimulate the nation’s economy is analogous to intentionally allowing the Missouri River to flood towns and cities because the streets need cleaning.
Either the Obama administration does not know its history or it intentionally wants to kill off the nation’s private sector. It might be a little of both.
The Obama regime may be the least qualified when it comes to understanding how a free market operates, how jobs are created and how profits are made. I have yet to uncover any high-ranking Obama appointee with any free-market experience, including the secretary for the Department of Labor, which should be renamed under the Obama regime as the Department of Labor Unions.
The bottom line is that we have entrusted our economy to a group of people who would not know how to operate a child’s lemonade stand. What an inexcusable, tragic mistake.
We faced a similar economic problem back in the early 1980s. After soundly defeating President Carter, Ronald Reagan, a fan of the free market, took the opposite approach of what Mr. Obama is doing to turn the economy around.
What happened because of President Reagan’s approach of lowering taxes, reducing federal regulations and favoring the private sector over Fedzilla? Almost 40 million private-sector jobs were created and America experienced a 25-year economic boom.
What America needs is a vibrant, growing and strong economy that benefits everyone, especially the shrinking middle class. This will not happen with a guy in charge who believes Fedzilla knows best. It does not.
There has been no net increase in jobs created as a result of swamping the economy with federal dollars, and there will be none. When the free-market history books are written, this will be the central theme of surrendering the economy to central planners in Washington who have zero private-sector experience.
The Obama regime has given America a crystal-clear message that liberalism in big government is an economic wrecking ball. What America desperately needs is a much leaner, less bureaucratic federal government - the very kind of federal government our framers had in mind when they started this experiment in self-government more than 230 years ago.
Got the message, GOP? Can you deliver it?
Ted Nugent is an American rock ‘n’ roll, sporting and political activist icon.
Publicado: 06-16-2011 09:54 AM
The 3 men who pulled down Wall Street-- where are they now?
email received today | 10/22/2011
Posted on Saturday, October 22, 2011 2:06:28 PM by IbJensen
The three men who pulled down Wall Street:
Franklin Raines was a Chairman and Chief Executive Officer at Fannie Mae. Raines was forced to retire from his ppoisition with Fannie Mae when auditing discovered severe irregularities in Fannie Mae's accounting activities. At the time of his departure The Wall StreetJournal noted, " Raines, who long defended the company's accounting despite mounting evidence that it wasn't proper, issued a statement late Tuesday conceding that "mistakes were made" and saying he would assume responsibility as he had earlier promised. News reports indicate the company was under growing pressure from regulators to shake up its management in the wake of findings that the company's books ran afoul of generally accepted accounting principles for four years." Fannie Mae had to reduce its surplus by $9 billion.
Raines left with a "golden parachute valued at $240 Million in benefits. The Government filed suit against Raines when the depth of the accounting scandal became clear. The Government noted, "The 101 charges reveal how the individuals improperly manipulated earnings to maximize their bonuses, while knowingly neglecting accounting systems and internal controls, misapplying over twenty accounting principles and misleading the regulator and the public. The Notice explains how they submitted six years of misleading and inaccurate accounting statements and inaccurate capital reports that enabled them to grow Fannie Mae in an unsafe and unsound manner." These charges were made in 2006. The Court ordered Raines to return $50 Million Dollars he received in bonuses based on the miss-stated Fannie Mae profits.
Net windfall . . . $190 million!
Publicado: 10-23-2011 12:02 AM
Tim Howard - Was the Chief Financial Officer of Fannie Mae. Howard "was a strong internal proponent of using accounting strategies that would ensure a "stable pattern of earnings" at Fannie. In everyday English - he was cooking the books. The Government Investigation determined that, "Chief Financial Officer, Tim Howard, failed to provide adequate oversight to key control and reporting functions within Fannie Mae,"
On June 16, 2006, Rep. Richard Baker, R-La., asked the Justice Department to investigate his allegations that two former Fannie Mae executives lied to Congress in October 2004 when they denied manipulating the mortgage-finance giant's income statement to achieve management pay bonuses. Investigations by federal regulators and the company's board of directors since concluded that management did manipulate 1998 earnings to trigger bonuses. Raines and Howard resigned under pressure in late 2004.
Howard's Golden Parachute was estimated at $20 Million!
Jim Johnson - A former executive at Lehman Brothers and who was later forced from his pposition as Fannie Mae CEO. A look at the Office of Federal Housing Enterprise Oversight's May 2006 report on mismanagement and corruption inside Fannie Mae, and you'll see some interesting things about Johnson. Investigators found that Fannie Mae had hidden a substantial amount of Johnson's 1998 compensation from the public, reporting that it was between $6 million and $7 million when it fact it was $21 million." Johnson is currently under investigation for taking illegal loans from Countrywide while serving as CEO of Fannie Mae.
Johnson's Golden Parachute was estimated at $28 Million.
WHERE ARE THEY NOW?
FRANKLIN RAINES? Raines works for the Obama Campaign as his Chief Economic Advisor.
TIM HOWARD? Howard is a Chief Economic Advisor to Obama under Franklin Raines.
JIM JOHNSON? Johnson was hired as a Senior Obama Finance Advisor and was selected to run Obama's Vice Presidential Search Committee.
IF OBAMA PLANS ON CLEANING UP THE MESS - HIS ADVISORS CERTAINLY HAVE THE EXPERTISE - THEY MADE THE MESS IN THE FIRST PLACE.
Would you trust the men who tore Wall Street down to build theNew Wall Street back up? I don't think so!
"Be who you are and say what you feel... Because those that matter ... don't mind ... And those that mind ... don't matter."
Hear now this, O foolish people, and without understanding; which have eyes, and see not; which have ears, and hear not.~Jeremiah 5:21
WHEN FDR WAS CRITICIZED FOR PUTING JOSEPH KENNEDY, PATRIARC OF THE CLAN KENNEDY, IN CHARGE OF THE STOCK AND EXCHANGE COMMISSION HE SAID THAT IT WAS A WISE DECISION: " IT TAKES A CROOK TO CATCH A CROOK."
BUT, IN OBAMA'S CASE HE CHOSE THE CROOKS TO ENRICH HIS CHICAGO MAFIA
Publicado: 10-23-2011 12:03 AM
Obama now accused of destroying U.S. economy ... on purpose!
President, Dems accused of deliberately overloading
country's financial system
October 24, 2011
NEW YORK – A new book released today documents how President Obama and progressive Democrats are deliberately overloading the U.S. financial system, using socialist designs to remake the economy.
"Red Army: The Radical Network that must be defeated to save America" by Aaron Klein and Brenda J. Elliott unearths the radical origins of Obama's major economic legislation and policies, including the 2009 "stimulus" and health-care law.
The book, with nearly 1,500 endnotes, documents how these radicals aim to remake the American financial system with massive government control.
"Red Army" contains a number of other major scoops while exposing the radical socialist network that seized political power in Washington over decades, shaped Obama's presidential agenda and threatens the very future of the U.S.
Klein and Elliott trace Obama's economic policies to a number of progressive organizations, most prominently the Economic Policy Institute, which is funded by billionaire George Soros.
"Red Army" investigates recent legislation and initiatives, including the "stimulus" bill, "Making It In America," the Currency Reform for Fair Trade Act of 2010 and "Buy American."
It traces the policies to groups such as the Alliance for American Manufacturing, a union-manufacturer partnership; the Soros-funded Campaign for America's Future; and the Apollo Alliance, which is run by a who's who of radicals.
Publicado: 10-24-2011 11:44 PM
On Obamacare, the "Red Army" documents how the legislation – deliberately masked by moderate, populist rhetoric – was carefully crafted and perfected over the course of decades. The book shows how the law is a direct product of laborious work by a coalition of radical groups and activists with socialist designs who seek to "reform" the U.S. health care industries, which account for a significant portion of the U.S. capitalist enterprise.
"Red Army" reveals the principal author of Obamacare, as well as how the legislation had its origins in an initiative openly associated with a slew of radical activists and groups. One is a group funded by Soros. A second is a terrorist-supporting, communist-hailing extremist. To top it off, another is a socialist activist who is the father of the U.S. single-payer movement.
Klein and Elliott first exposed President Obama’s "extremist ties" in their 2010 New York Times best-seller "The Manchurian President."
Some other highlights from "Red Army":
- The existence of a powerful "Marxist-socialist" bloc in Congress (explicitly formed as an arm of the Democratic Socialists of America) and how it is behind legislation in areas that affect all Americans, including the complete socialization of health care and comprehensive immigration reform, which, the
book exposes, seeks to change the very nature of the American electorate.
- In two chapters that every American must read, entirely new information is laid bare on the left's unprecedented assault on America's already over-liberalized education system.
- The multipronged policy offensive aimed at disarming America by emboldening its enemies within and without, spurning traditional allies, subjecting the nation to the authority of foreign tribunals and systematically dismantling the U.S. military.
- How elements of the news media not only collude with these radical groups but are in some cases members of the very extremist organizations they ought to be investigating.
"Red Army" is published by Broadside Books, an imprint of Harper Collins.Klein is WND's senior reporter and Jerusalem bureau chief. He hosts Aaron Klein Investigative Radio on New York’s WABC Radio. He is a regular guest on the Fox News Channel and the Fox Business Network.
Elliott is a New York Times best-selling author, researcher and historian.
Publicado: 10-24-2011 11:45 PM
Solar: Fake Energy Provided by Fake President
By John Ransom
This is the year that the fake energy provided by our fake president finally collide and go boom.
So, get ready for a new round of green bankruptcies, as Europe trims back subsidies for solar companies and taxpayers lose their appetite for subsidizing green power.
Publicado: 04-14-2012 12:13 PM