Author: lemkin

[Rather than a double dip recession] we may be looking at 2 years or more where the growth could be in the range of 2.0 percent or even less. When we have 9.1 percent unemployment, this is an outrage. If we get people applauding because at least we are not seeing a double dip, then we have to calmly escort these ignorant beings to somewhere far away from economic policy discussions. They clearly do not have a clue and need to try a different line of work.

Finally, it is 100 percent nonsense to say that the government is out of policy options. We can do more stimulus. The financial markets are yelling at the government at the top of their lungs saying “borrow more money.” That’s what 2.6 percent interest rate on 10-year Treasury bonds means. There are balanced-budget worshipping politicians who say that the government can’t do anything, but this is not true and the NYT has no business repeating it.

The Fed could also do more. […] Ben Bernanke has himself suggested: targeting a long-term interest rate (e.g. a 1.0 percent 5-year Treasury rate) or a higher rate of inflation (e.g. 3-4 percent). […]

The government could also try to create jobs by taking steps to lower the value of the dollar. The Chinese government has been making threats that it will stop buying up U.S. government debt if we don’t take their advice. The Obama administration could ask what they most want and then do the exact opposite. If the Chinese government stops buying U.S. assets then the dollar will fall against the yuan. This is equivalent to imposing a tariff on Chinese imports and giving a subsidy to U.S. exports. In other words, it should lead to a burst in net exports which will lift the economy and create jobs.

Dean Baker is either giving great analysis of the nation’s near term economic outlook and policy options –or– reciting a litany of facts, large and small, that you will never, ever hear on any MSM outlet. Even by accident.
I’m not sure which, though.
Source: cepr.net

Who’s To Blame?

Jay Bookman wants to know a few things:

Who rejected “the comprehensive fiscal consolidation program,” with cuts to entitlements accompanied by higher revenues, producing a debt reduction of $4 trillion, proposed by President Obama? That would have produced twice the debt reduction promised in the deal that was finally accepted.

Who rejected the very notion of compromise, making “the differences between political parties … extraordinarily difficult to bridge,” with one side announcing that only total capitulation by the other side would be accepted?

Who embraced the policy of political brinksmanship that pushed the country so perilously close to default? Who publicly embraced the threat of default as “a hostage that’s worth ransoming,” announcing that the tactic would be used every time the debt-ceiling issue arises from now on?

To hear any of these questions, much less any of their answers, one would be well advised not to even bother with the MSM. They are in full on “pox on both houses” mode. This is an entirely self-inflicted, politically motivated wound. Why won’t anyone ask the GOP why they thought it best to bring ‘em on?

Who’s To Blame?

This Is Why

Standard and Poors to downgrade US credit rating:

A source says Republicans [steadfast refusal] to accept any tax increases as part of a larger [deficit] deal will be part of the reason cited [for the historic downgrade].

How do you imagine the radical Socialist Obama administration plans to respond on behalf of The Democrat?

[An administration] official says that S&P made a “serious mistake” in its analysis, “based on flawed math and assumptions,” so the Obama administration is pushing back.

This is why they fail.

This Is Why

The first [thing Michael Jordan’s oddly vindictive Hall of Fame induction speech makes clear] is that this induction was a formality that Jordan couldn’t enjoy the way a normal man might, since he’d lived almost half his life certain this moment was inevitable (it was like finally receiving a plaque for something he’d done in 1994). The second is that this speech was the last time anyone would think about Jordan as a living basketball player, and he knew it. Obviously, we’ll never stop talking about Jordan’s career, but — from now on — it will almost always be in reference to someone else.

Chuck Klosterman, writing for Grantland. One of the more perceptive paragraphs about sports (in general) and people like Jordan (in particular) that I’ve read.

Capital Gains Taxes make Baby Jesus Cry

Just a few details on the beliefs of those involved in Rick Perry’s Prayer Rally:

Oprah is a sign of the Apocalypse: In his channel on GOD TV, Mike Bickle
called Oprah a “forerunner to the harlot movement.”

Blackbirds are dying because of gay soldiers: Dr. Cindy Jacobs recorded a
video declaring a connection between the repeal of Don’t Ask, Don’t Tell and
the sudden death of blackbirds in Beebee, Arkansas as a divine punishment.
She also called “girl-on-girl kissing” a “plague on society” and asked
divine forgiveness for the violation of a woman’s “natural use.”

The Statue of Liberty is a “demonic idol” : In various sermons, John
Benefiel called the Statue of Liberty a “demonic idol.” He also expressed a
belief that homosexuality is a plot contrived by the Illuminati “to limit
the world population.”

Hurricane Katrina was divine retribution for the city’s “sin”: John Hagee

Gay rights movement from the “pit of hell”: Dwight McKissic denounced
comparisons between the civil rights movement and the gay rights movement
because the latter is a “satanic anointment…inspired by the anti-Christ”
that comes from the “pit of hell.”

Jesus actually opposed the minimum wage: Influential pastor David Barton
has made a name for himself by distorting Biblical text to support his claim
that Jesus opposed the minimum wage and the capital gains tax.

Frankly, I don’t see how anyone could have a problem with any of this. All perfectly reasonable stances for any and all putative nationwide candidates whom Serious People are begging to get into 2012.

Capital Gains Taxes make Baby Jesus Cry

Number Two

LA Times: “Investors are looking past the budget situation and realizing this is an austerity plan,” said Jack Ablin, chief investment officer at Harris Private Bank in Chicago. “We have an economy that’s struggling to stay afloat and we don’t have the ammunition to keep prodding it forward.”
Kevin Drum: Oh really? Now you tell us? There are really only two options here. (1) The Times is wrong. (2) The Times is right and America has the stupidest goddamn investors on the planet. For months they sat around cheering on the tea partiers and declaring solemnly that the federal budget was just like a household budget and we needed “real action” on the debt in order to build confidence in the economy. Then, suddenly, when they got it, they realized that what they really wanted wasn’t dumb slogans but actual policies that would help spur the recovery. And that means looser monetary policy and fiscal stimulus.
Lemkin: I’ll take #2 for $1000, Alex. Tea Klan nonsense works because it feels good. It’s fun to rage away and tilt at grand conspiratorial windmills. Never you mind that actions have consequences, many of which will have direct and painful consequences in your lives. FOXnews and its political wing, the GOP, have a President to defeat. Nothing else matters. Pure electoral nihilism.

Here’s an idea: Democrats demand $100 billion in new tax revenue for every Democratic vote Boehner needs to pass this thing or we kill the hostage (e.g. ‘Merica).

Oh, and did we seem to have concluded an agreement just then? Sorry. We also want a Progressive Taxation amendment to the Constitution.