Save the Fed

Doomed to repeat history? Of course we are, but the fate I fear isn't the sort of doom that descends upon us from above unless you consider the cesspit of "Conservative" rhetoric to be a higher plane of thought. No, I'm not talking about the market bubble of the late 1920's that was brought about by slashing the top marginal tax rate or the deregulation of the markets that gave us the 1929 crash; I'm talking about where we were fourscore years ago in 1931 when the European banks began to fail and nobody was able or willing to do anything about it. Then as now, we had "Conservative" rhetoric attempting to blame the mess on the usual suspects, like lazy American workers and in Europe: the Jews. We had calls around the world for even more austerity, as if the world could save itself by saving money.

" Instead of easing monetary policy by cutting interest rates and buying bonds, the Fed tightened. The result was a catastrophic chain reaction of bank failures, which caused the money supply to contract by approximately a third, and economic output with it"

writes Niall Ferguson at the Daily Beast, lamenting the gross lack of knowledge of bankers, investors, fund managers, regulators, policymakers, and economists. Ferguson cites Milton Friedman and Anna Schwartz’s Monetary History of the United States, which argues that

"the stock-market panic of 1929 turned into a depression because of avoidable errors by the Fed. Instead of easing monetary policy by cutting interest rates and buying bonds, the Fed tightened. The result was a catastrophic chain reaction of bank failures, which caused the money supply to contract by approximately a third, and economic output with it."

The Gold Standard, the massive debt from The Great War, the partisan inability to compromise brought on the disaster we know as the Great Depression and only those countries that dropped that standard and began hiring while gearing up for war, began to recover. Germany led the way and the US followed.

With some Republican spokesmen demanding the return of the gold standard, demanding an end to the Fed, demanding more austerity, demanding that more capital be tied up in the hands of a tiny minority, the money supply diminished and the demand for goods and services curtailed, the few who understand what needs to be done are being shouted down by politicians who insist that the only solution is a bigger cut in the marginal rate, and the angry mob they feed.

"We are indeed fortunate that at least the world’s leading central bankers have studied this history: not only Ben Bernanke but also the heads of the Bank of England, the Bank of Canada, and the European Central Bank. The bad news is that so few politicians and voters understand what they are trying to do, or why. The even worse news is that central bankers by themselves may not be able to stop our depression from turning great."

Worse news even than that, is the fact that people like Dr. Ferguson, a professor of history at Harvard University, a senior research fellow at Oxford University, and a senior fellow at the Hoover Institution, Stanford University do not inform the Cains, Bachmanns, Palins or Gingrichs or the rabble who support them, nor would the public trust any "elitist" "Libtard" "pinhead" over the kind of small minded moral abomination now stumbling toward Washington.

As They Like it

Wake up, little Susie, wake up
Wake up, little Susie, wake up
We’ve both been sound asleep, wake up, little Susie, and weep
The movie’s over, it’s four o’clock, and we’re in trouble deep
Wake up little Susie
Wake up little Susie, we gotta go home.

-Everly Brothers-

___________________________

I'm relatively sure that our new "save your way out of unemployment, no job needed" austerity program will stifle the economy and thwart any meaningful recovery and that a good share of the people who held the gun to our heads to push this sorry debt ceiling bill, not only know it too, but desperately want that outcome so as to help push the Tar Baby out of office and privatize the presidency in 2012.

The Tea Terrorist Great Leap Backward may not let 20 million people starve as Mao Zedong's Great Leap Forward did, but it's not only not going to put bread on the table, for many of us, that table may be a park bench.

Victory is so close they can almost taste it. Unemployment is so high so that millions don't have the money it takes to be heard, don't have the money it takes to buy the products that make the economy expand -- but corporate profits are up -- way up. Call your congressman? Write your Senators? Sorry Charlie, teabags come with strings attached and unless your letter is stapled to a million dollar check you might as well save the postage and stationery.

Corporate profits are up, and that's OK. We're selling overseas and manufacturing overseas and American workers are redundant -- and face it, America and what we used to think of as the American way of life, the American Dream, is a millstone around the corporate neck. It's a global economy now and global corporations owe no allegiance to the United States even if they're nominally American companies. They will use every strategy they can to avoid paying taxes in the US or benefiting workers who can be replaced and exploited cheaply in China and India. We're witnessing one of those strategies today. The only people not in danger of being outsourced or laid off or screwed out of benefits and pensions are the legislators and judges and corporate propagandists on the payroll and sorry, little Suzie Teabag, that ain't you. Wake up.

Now all that Social Security money and that Medicare money go right back into the economy, purchasing goods and services immediately. Minimum wage workers spend every dime they make. Nobody hoards food stamps. They don't want that. They don't want money in your hands, since it's money that might give you some political power, since it's money they could sit on and hoard and invest abroad with no taxes paid. Think it will go to creating American jobs? Are you stupid?

Your taxes aren't going down, theirs is. They're not creating any jobs you're eligible for or would accept, and your cost of living will be going up as the Dollar shrivels like Limbaugh's penis and your freedom and your rights and your privacy and your political voice and your retirement plans are dissolving in the rapidly rising water.

And they like it that way.

Pickin' on Paul, or Kentucky windage

Face it, it's become traditional for Republicans to declare that a Democratic election winner is a failure before he takes office, and in Obama's case, even before he was elected. Reality is no longer a prerequisite, if indeed, it ever was.

So why shouldn't I take this opportunity to declare that Rand Paul is a failure as the Senator from Kentucky and why not start off with a nasty, childish nickname like Runt Paul, to reflect his father's superior claim, in my opinion, to be respected for his views. Oh, come on, it's an American tradition and I'm not even claiming he was born in Nepal -- nee-Paul, get it? Of course we don't know for sure, do we? He's ignored my request for a birth certificate. By the way, isn't is suspicious that he want to an expensive, elitist Ophthalmology school? Who paid for it and why can't he produce board certification? Where is Orly Taitz when you need a nutjob attorney?

And look, I've even got a plausible story. Remember how cutting earmarks was the important part of reducing the cost of government both in Runt's rhetoric and that of the GOP in general? Well, that was then and now that we've put away the Punch and Judy puppets, he's now just fine with earmarks as long as they are earmarked for Kentucky. But of course he's still not going to let Washington - or reality - change him as he explained to the Wall Street Journal. I mean he still hasn't let the end of segregation change him. He still thinks it's a violation of property rights - kinda like freeing the slaves.

Of course the federal porkbarrel is not all that large when held up against the Supertanker of Federal spending, even though that spending as a percentage of the GNP isn't quite as huge as it appears when spoken of in dollars, but that sort of relativity sounds socialist or at least overly obscure to the public and we don't need to go into it. Besides, and to his credit, Runt accepts that we're going to have to look at the Massive Military Budget too. Good for him! but maybe that's just a Liberal Conservative ploy and if Kentucky is chosen to build some trillion dollar superbomber to win the cold war that ended before he started to wear a hairpiece, things will be different, so let's just assume, in the fine American tradition, that he's already gone back on his word - on all his words, actually. I mean, he might, so he already did. All's fair, right? If Obama raised taxes by lowering them, Rand Paul has already increased military spending - or maybe cut it. It doesn't really matter. It's all really about whose side you are on anyway so let's not get picky.

So did you hear that Rand Paul wants to make our country weak and is soft on Terrorism?

Kill the cuts

There seems to be a difference between the ultra right as represented by Ayn Rand disciple and 'free markets cure all ills' cult leader Alan Greenspan, and the ultra right as personified by the rabble rousing opportunists who feed the vernacular conservatives of America. Dilatory though he may be in admitting that free markets are no more free or self steering than a car without a driver, he's none the less not as retarded as people who claim to see Russia over the horizon, staple tea bags to their hats and shriek about tax increases they didn't get. He does, albeit slowly, question the ad hoc axioms upon which he bases his theories and thus, through doubt, he thinks, he learns, he changes.

Amidst the tumult of irate e-mails calling President Obama a liar for personally having raised the cigarette tax ( a tax is a tax, after all ) and a communist for unleashing THE BIGGEST TAX INCREASE OF ALL TIME, which actually is nothing of the sort, it's refreshing to hear Greenspan utter:

"I am very much in favor of tax cuts but not with borrowed money."

What he's dismissing is the lifeblood of Republican economic policy and has been at least since the Reagan administration: tax cuts pay for themselves. It's policy that along with a huge increase in government agencies, military spending and a war now having cost more that World War 2 was supposed to be paid for by tax cuts, but failed. It was paid for by borrowing from foreign sources with our independence as collateral. A rational person must have noticed by now that it doesn't work and never has worked and virtually always precipitates a recession. An irrational man, a Fox man, a Conservative man, even a Libertarian man, chants liberaliberaliberal, constructs straw stuffed scapegoats and tries to distract us with fairy tales about the President's religion and parentage.

"The problem that we've gotten into in recent years is that spending programs with borrowed money, tax cuts with borrowed money, and at the end of the day that proves disastrous."

said the Former Federal Reserve Chairman on NBC yesterday. It's axiomatic in our new propaganda soaked world that fixing a problem is far less effective and more expensive than hiding it under foamy lipped hysteria, and so the tax cuts that were designed to expire this year by the Republicans who wrote them into law, become a surprise betrayal by Obama. Those liberals are betraying us by following the law we wrote!

The tax cuts, that if renewed will cost us $2.2 trillion to $3.8 trillion over the next decade and put us that much further in debt, since no, they will not pay for themselves as has been demonstrated but will further impoverish the nation but to the benefit of a handful of people and corporations. But that debt must be thought of differently than any debt incurred in extending unemployment benefits and the glaring hypocrisy must never be acknowledged. For are we not conservative?

"You don't agree with Republican leaders who say tax cuts pay for themselves?"

asked David Gregory on Meet the Press.

"They do not."

was the emphatic reply.

I hope he fails!

Limbaugh said it and the Republicans echo it. It's more important that the Democrats fail -- that even if successful, Little Black Obama must be seen to fail in any attempt to fix anything, much less to end the recession. To be the party of business they claim to be isn't important, because the public is illiterate and it's cheaper to buy belief than to generate it through doing what you say you'll do. Wave flags and buy pins - that's all the patriotism one needs - the real purpose of politics is winning.

Forget that supply side economics never has and never will work: anything that does work in helping small business survive and thrive and create new jobs must be sabotaged along with anything that helps families stay together long enough to benefit from those new jobs.

That's right, the Republicans who just finished up trying to extend unemployment benefits are trying to sink a bill to help: not Exxon or BP or Halliburton or Goldman Sachs, but to offer credit to small business. Why? because it might just work. The same party that offered apologies to BP for making them pay for their criminal negligence intends to block a small business relief bill because it offers 30 billion in credit. The same party that requested three trillion no questions asked with Secretary Paulson to have exclusive and secret stimulus spending discretion. The same party that would still rather have starvation and poverty and disease rather than give a nickel to anyone who lost their job. After all, non-Republicans are just lazy, illegal immigrant bums without the gumption to be white. No, if it creates the millions of jobs that only small business can do, it might help the Democrats in November. Better to let it all go down and blame it on Obama.

No, making loans to stable small businesses is wasteful government spending, you see -- not like waging useless and unnecessary wars and building useless weapons systems and giving tax breaks to BP.

No, it's the same old GOP, the same party that was willing and eager to let millions of Americans starve during the last Depression they brought on, rather than get a dime they hadn't worked for and couldn't have if they had wanted to. Let it fail - desperate workers are cheaper labor and slave labor is cheapest and just think how well they could live with no middle class and all the burden on the serfs.

Another new black

My local Tea Party is gearing up for another froth and drool session on tax day although at least half of them know by now they won't be paying Federal Income Taxes this time or at least less than they paid the year before. You can be damned sure there won't be any of the local Billionaires (there are quite a few) amongst the cracker crumbs.

The Dow is over 11,000 as I write this, investor optimism boosted by earnings reports and economic data. Inflation remains contained at one tenth of one percent, despite the solemn assurances of Weimar style runaway. Retail sales continue to climb more than expected as the economic expansion continues.

"The amount of diesel fuel bought using credit cards at U.S. truck stops increased in March to the highest level in more than a year, indicating the recovery is broadening beyond manufacturing "

says Bloomberg and truck tonnage, which accounts for 68 percent of freight transported in the U.S., increased on a year-over-year basis in February for a third straight month, as truckers benefit from inventory rebuilding, increased exports and stronger sales.

It's getting harder not to call this a recovery, but it would certainly be hard to associate the news with the kind of implosion into economic chaos, a Marxist economy and tyrannical Pol Pot killing fields some of the more extreme viewpoints have been forecasting.

"Bleak is the New Black"

writes Newsweek, but it's in the context of the increasing disparity between the sound and fury and the tale told by economic data.

"America is coming back stronger, better, and faster than nearly anyone expected—and faster than most of its international rivals."

and at present, the Dow is up over 70% in the last year. As to whether we would have turned around earlier if there had been no bailout, no stimulus package and a program of austerity and continued deregulation as the Republicans demanded after 1929 -- it seems harder still to believe that we would be talking about recovery as anything but a cruel joke just now. Even so, despair, panic, and even hysteria are the stock in trade of the Fox News doomers and gloomers - the same folks who blamed pessimist Liberals for "talking down" the solid economy of the Bush years. No, certainly a continued, uninterrupted recovery is hardly a sure thing, but more balanced Republican observers may be beginning to wish the fear mongering Murdoch would reign in his dogs a bit tighter before American voters realize that the last thing the Republicans seem to want is what they want: a recovery.

Bombs or Buicks?

My hypocrisy detector burned out on overload ages ago, so I can't really tell whether the idea that preserving jobs at GM and Chrysler is an outrageous example of Democratic overspending while eliminating a smaller number of jobs producing weapons systems designed for all-out war with the Soviet Union is an equal and opposite outrage -- even though the overall military budget will increase by $20 billion and even though the plan to halt production of the F-22 super fighter and the C-17 cargo carrier come from George Bush's former secretary of Defense.

It's getting harder to be partisan when the perceived difference between spending and cutting, big and small government no longer relates to the actual budget -- unless, of course, you just cover your eyes and ears and pick a side.

Of course there's a difference between pouring money into consumer products, the use and maintenance of which creates further jobs and into products that create shock and awe and a lot of debris, but if there's any discussion of that, the noise of the turf wars between the military and private sectors may be drowning it out.

The defense industry is trying to hang on to its share of the gravy train, says The Washington Post today.

"Why, they ask, would President Obama push hundreds of billions in stimulus spending to create jobs only to propose weapons cuts that would eliminate tens of thousands of them?"

Maybe because building more jets not only takes money away from systems we need more of, like armored vehicles and armored soldiers, but because every Chevy built supports not manufacturers of the car; of tires and batteries and spark plugs and glass and paint and steel : it supports not only dealers, mechanics, salesmen, gas stations and all the businesses drivers patronize, but it supports every business that needs to transport people and goods and that means virtually all of them. More money travels more places, through more hands and at a higher velocity and that's exactly what we need to save our sabotaged economy.

But that's just my opinion which hardly counts because I can only vote and I only have one voice to complain with and I don't have the $175 million or so the defense industry spends on contributions and lobbying. I don't have Rupert Murdoch's billions behind me or a huge, underground staff of spammers and swift-boaters and seditious talk radio gasbags hoping to profit from further chaos and collapse.

Am I wrong to expect nothing but the worst?

Words and pictures

I generally try to find things to rant write about on my own, but the latest post at The Swash Zone is too good not to pass along -- with permission. We've had a week of demented and dishonest raving about government spending and even some astonishing rhetoric about our current administration being worse than George III of England, about revolution and secession because of the strange inability of hysterical Republicans to distinguish between a tax cut and a tax increase. Words don't work, so maybe graphics will.

Of course it's best to read the entire post, but these two pictures are worth thousands of words. Click to enlarge:

Fortune 21 - who's the dumbest of us all?

What were the "dumbest moments in business" during the newly departed annus horribilis, asks Fortune Magazine, which lists their choice for the top 21 feats of stupidity in 2008. Was it the beggars from Detroit arriving in Washington in private Jets or the Man from Chrysler arriving the second time around in a bloated SUV hybrid scheduled to be cancelled? Can any of that compete with investing money with Bernie Madoff, ( number 17) or be more laughable than John McCain telling us the "the fundamentals of this economy are strong."only hours before the Dow fell 500 points on news of the Lehman bankruptcy? (number 13) Maybe number 21; Phil Gramm's calling non-optimists a "nation of whiners" and his condescending dismissal of a troubled economy as a "mental recession" deserved to be on top.

It's hard to rank blunders so gross on any kind of scale. It's hard even to count them when the road to Black Monday was so long and so well paved with politics and patriotism and of course, funny as such pratfalls usually are, nobody can afford to laugh.

January may be a rough month "There's going to be a massive sea change in the retail landscape," said Nina Kampler, executive vice president of Hilco Real Estate, which advises retailers on their property management. and the likelihood is severe enough that even the mixed metaphor won't draw many giggles. All in all, this is not a good time to ask the mirror who's the dumbest of them all. It reflects us all equally.

No prospect for recovery

The New York Times humor section asks you to come up with a caption for this picture. I don't find anything funny about it, other than the fact that Americans have so long sneered at the idea of small, fuel sipping American cars while complaining that Detroit isn't technically adept enough to produce them. The little Nash Metropolitan was one of many failures in the era of "bigger is better" and that's an era with no signs of ending. In fact nobody makes cars big enough for us, or clumsy, or unstable enough, so we drive trucks and vans and pretend, like Governor Schwarzenegger said on 60 minutes last night, that magic technology will allow us to keep driving them and keep making them bigger.

I was waiting at a light to turn on to old Dixie Highway yesterday, top down and shades on, when a venerable Porsche 356, followed by a TR-4, followed by an XK120 rolled past in convoy making a joyful noise; tops down in the fragrant, 75 degree Florida sunshine. I had hoped to catch up with them and share the country road and the joy of life for a moment, but of course by the time the light changed, there was an SUV and then another and a van and a huge jacked up pick-up lumbering along, their timid occupants sealed in bank vault vehicles, breathing canned air and peering through their tinted windows darkly.

But of course Americans are always victims, so it's the manufacturers' fault that we hate and fear small cars and American's hate being American so it's Detroit's fault that it isn't located in Japan. Funny though, that Toyota, who also makes the same kind of misbegotten vehicles Americans crave is suffering too and so is Honda and so, it seems, is everyone else. Toyota announced after Monday's close that it expected to lose more than a billion and a half dollars in 2009 and Japan's exports are already down 26%. Spokesmen for Honda say they see no prospect for recovery. But when it does come, if it does come, won't we go back to our same old trucks with renewed lust?

So how do we convince the mothers of America that they don't need 4 ton trucks to go to the beauty parlor and that safety has a much to do with putting down the Evian and the cell phone and learning how to pick a line through a corner as it does with Gross Vehicle Weight? Does it even matter if we will have to resort to buying cars we can actually afford because we can't get credit or are out of a job? Whatever happens, the open road and the spirit of adventure and freedom are gone and those "On The Road" Dean Moriarty moments won't ever happen again if Mom and her Hummer can help it.

Just Print it

“The Fed is sending a message that it will print money to an unlimited extent until it starts to see the economy expanding,”

says William Poole, former president of the St. Louis Federal Reserve Bank and now a senior fellow at the Cato Institute. The Fed today cut the Fed fund rate, or the overnight borrowing rate, to 0.25% today.

It's an appealing strategy because of course, it's been tried in Japan and didn't do much of anything but provide enough liquidity for people outside that country to make a lot of money on their misfortune. It's a good way to pay off massive debts though - just print it. The idea of a 0% main interest rate prevailed in Japan from 2001 to 2006, in order to pump up a sinking economy and stimulate lending. The hope of stimulating commercial banks to lend failed for them, but of course the idea of the US as a separate universe with different laws has been part of our policies for a long time and we still have a month to go before George leaves the building. Gentlemen -- start the presses.

So you say you could use some of that 0% financing yourself? Don't count on it. We're not banks, you know: we just bail them out.

Stupid Republicans

If we think the very rich are indeed different from you and me, it may not be much of a complement to them.

The talk around the Yacht Club these days involves a lot of snickering about Barak Obama and what "that man" will do to the economy. No, I'm not joking, but then neither are they. Perhaps Malcom Gladwell is right that material success has as much or more to do with circumstances than with talent or intelligence. Take the fellow with a yacht worth far, far more than than Joe the Plumber will make in his lifetime; a fellow who thinks that we're seeing a "slowdown" that will "bounce back" shortly and a slowdown that has nothing to do with George Bush, a Republican congress, deregulation or the idea that debt has no consequences if you cut taxes and pour money down a hole. I have as much faith in his genius as he has in the notion that America's success has been the result of its Christian piety.

Obama of course will raise taxes. That's axiomatic because he's a Democrat. Raising taxes will harm the economy, they say, even though it would be as fair to say that a bullet will harm a dead horse and the economy has done better under Democrats since WW II. Supply side economics will work eventually and even if it doesn't, even if the "slowdown" becomes a full blown depression, we have to keep making it easy for the Great Gatsby to keep the twin Diesels fed. Did I mention that Obama is going to ruin the economy by raising my taxes?

Bye bye Miss American Pie

Indications are that a majority of Americans still oppose anything like a bailout for financial institutions. An unscientific CNN poll today has 59% answering "let risk-taking financial institutions fail." A Time Magazine article says much the same thing.

I think many people underestimate the risk of doing nothing. I think the smug, Reagan era idea that Government is essentially bad, can't fix anything and can only make things worse, plays a role and I think it's only human nature to distrust a plan drafted by the people who not only told us only days ago that it was foolish to think ( or to whine ) that we are experiencing recession; the people who have been preaching deregulation and advocating "anything goes" markets for decades, the people who refer only to dogma and ignore reality.

I have to admit that a part of me wishes it would all fall down and plunge us into depression simply to punish the slight majority who have been mocking reality and the people who recognize it, and mocking anything to do with government participation in anything but warfare. Of course I know that even bread lines and 30% unemployment wouldn't change such minds; they would simply blame it on Liberals with the same instinct that causes a land crab to run for the darkest place when you're trying to chase it out of your garage. Conservatives blamed the Great Depression on lazy shiftless workers. Not much has changed.

So seeing the intransigent stupidity and self-delusion of America, I have to believe we're in need of some kind of rescue; some kind of government intervention. Judging from events elsewhere however, I think the Post-bailout America would be only marginally different from the post "let them fail" America and either way, we're in for 5 years to a decade of high unemployment, inflation and increased marginalization of our position in the world. We're in for a long period of blaming, scapegoating and scurrilous propagandizing. Faced with a stalemate in Iraq, a rapidly declining position in Afghanistan and a Pakistan that cannot control its borders or prevent itself from being a haven for al Qaeda, it's hard to be optimistic no matter what is done, who wins the presidential election or which party controls the Congress.

I would like to believe that we will eventually see a leaner, more fiscally fit and saner America, but I don't believe in our ability to learn from mistakes, to recognize that we have made them or to see beyond the rhetoric and dogma and slogans when looking for solutions. Instead, I see more excuses for cute and perky incompetence, more praise of folly and more of our eternal hunger for fast food, fast solutions and the comfort of false certainty.

America - I wish to hell I could quit you.

I don't know anything

Nobody knows anything. I've heard the quote attributed to Samuel Goldwyn, but I don't know. I don't know anything.

I don't know how the economy can go straight to hell in a supersonic hand basket and yet the dollar can gain strength against stronger currencies.

I don't know how John McCain can bellow about Obama's lack of leadership when he can't rally his own party to fix his own party's disaster and I don't know how he can mock Obama for being aloof regarding the deliberations when McCain continued his campaign after his "putting it on hold" play to the grandstand, and he and Lieberman went out to dinner at an expensive restaurant while it was going on.

I don't know why it's a good thing to be a maverick who can't get along with his party or the other one when leadership is required and I don't know why it isn't a bad thing when a senator or congressman votes against the wishes of over 80% of his constituents.

I don't even know why McCain, who despite his hyperbloviations has reversed 26 years of experience in backing this bailout can blame Obama for being more fiscally conservative and a big spender at the same time. I don't know why McCain bellows about lowering taxes when the Democrats' tax plan lowers them for more people and I don't know why his party doesn't simply fall down and die of shame after telling us we need an immediate, no questions asked bailout only days after insisting that the economy was sound and debt didn't matter and in fact we needed more of it. I don't know how leadership consists only of blaming others while weaseling out of responsibility for having been part of the collapse that I and many others predicted would come of borrow and spend economics. I don't know how leadership involves lying repeatedly, consistently and thoroughly and I don't know how one gets points for snickering and grimacing in a debate.

I don't know why this flyblown, disease ridden, dishonest old crank has more than a dozen supporters, but he does. I don't know anything and that's an understatement.

The quiet American

It is better to keep one's mouth shut and be thought a fool than to open it and resolve all doubt. ~Abraham Lincoln

We haven't been hearing a lot of words from either Republican candidate recently and of course that brings Honest Abe's quote to mind. It's obvious that the handlers are terrified of some monstrous gaffe from Sarah - something that would dwarf the Iraq-Afghanistan border groaner or confusing the Spanish Prime Minister with some South American insurgent. Hence the retreat to the safety of silence.

It's harder for McCain to justify his Cheney-like seclusion, but it now seems he's found a way to counter the public impression that he has no interest in fixing the economic crisis, no ability to understand it and is too close to the people who made it happen. Here he comes to save the day; Mighty Mouse McCain goes to Washington and he can't be troubled with pettiness like debates.

According to an ongoing CNN poll, 71% of the respondents at this point see it as a political gimmick and only 24% as an honest attempt to deal with the economy. I agree. Will it backfire? It might, as public sentiment seems overwhelmingly against the proposed bailout and being identified with it may be politically dangerous.

Good times

Any time you meet a payment. - Good Times.
Any time you need a friend. - Good Times.
Any time you’re out from under.
Not getting hassled, not getting hustled.
Keepin’ your head above water,
Making a wave when you can.

"And I know that many of you here are watching how the United States government will address the problems in our financial system."

George W. Bush said in his last speech before the United Nations as President of the United States Tuesday. Having been buffeted by questions from all corners as to what he was going to do about the disaster he and his party had so assiduously worked for all these years, he reassured the world:

"I am confident we will act in the urgent time frame required.''

Did anyone ask why the hell he didn't do something 8 years ago; why did his party continue the easy credit rip off; the supply side shell game; the deficit spending, the deregulation, the tax cuts in time of the most expensive war in 63 years? Did anyone need to?

Temporary lay offs. - Good Times.
Easy credit rip offs. - Good Times.
Scratchin’ and surviving. - Good Times.
Hangin in a chow line - Good Times.
Ain’t we lucky we got ‘em - Good Times.

George is on the job.

This morning's brief "rebound" has fizzled, Morgan Stanly is in trouble, talking about selling a bigger stake to China or merging with Wachovia. US commercial paper has suffered the the biggest percentage-point decline in at least 26 years. The August leading indicators fell more than expected and world confidence in the US Dollar and US treasury securities is evaporating; for good reason. There hasn't been such a great need for economic leadership since the Great Depression and the likelihood of our idiocracy electing anyone on the basis of intelligence and education seems "iffy" at best.

George W. Bush ( doesn't he look good in a flight suit?) reassures us that he's regularly conferring with the same economic advisers who have been preaching the deregulation dogma that produced this mess. He's even cancelled more days off - after all he owns the world record.

Sarah Palin, who believes in witches and believes that all this happened because rich people pay too much taxes, assures us that we need to keep regulation from stifling growth: what growth?

Is this only the beginning; the first ripples of the storm surge to come? Perhaps we will be bailed out by the rest of the world; unwilling to have an American albatross around their necks. Perhaps not. Michael Bloomberg (what does he know about money?) thinks the next wave may be worse. I see no sign that he's wrong.

Stupid Liberals

It's only been a few years since my prediction that we would find ourselves in recession if Bush's economic blundering continued, but the difference in how Americans see things has changed a bit. I get called an anti-American commiepinkoliberaltraitor far less today although the "stupid Liberal" trope still turns up now and then. Only a while back, people on Fox and elsewhere were insisting that we were on the verge of another boom based on the voodoo of lower taxes and that all negativity about unlimited deficit spending and massive waste was the work of satanic Liberals seeking to undermine the economy. The media is promoting nothing but negative economic news was the headline. It's a conspiracy and we have a study to prove it, said the Fox. The real indicators are all up - way up. One of the most angry exchanges on this blog was about the liklihood of a downturn. I haven't heard from that guy for a long time.

It's not too surprising that such optimism is as difficult to maintain today as was the optimism the Republicans were being so militant about in the first year after the Iraq invasion. Even though opponents have been vindicated, the vindictiveness remains. They're still burning straw liberals.

Those who remain optimistic that we can borrow and taxcut our way to the promised land have dwindled to a few percent, but they still think they are a majority and they're still looking to fix the blame on others. Gone, or at least quiet now are the people who viciously condemned the "liberal media" for telling us only the bad parts 7 years ago; the people who said the schools were back open, the streets were safer than in Washington and the elections proved the mission was accomplished and peace was just around the corner. Waiting for a retraction or an apology won't be productive, I'm sure.

Meanwhile, back in the present, Inflation, that infected camp follower of deficit spending campaigns is beginning to hound us, but the Fed is afraid to raise interest rates because of the stagnating economy. They must be Stupid Liberals too.

John McCain has the answer of course -- it's called more tax cuts and more borrowing and more railing and screaming about Liberals. Anything less would involve being a surrender monkey. Is McCain following in the footsteps of his Bush administration optimist forbears with his continued optimism?

"Iraq will not require sustained aid"

-Mitchell Daniels, director White House Office of Management and Budget. April 2003

"We are talking about a country that can really finance its own reconstruction and relatively soon."

-Paul Wolfowitz, testifying before the House Appropriations Committee 2003

". . . before we turn to the American Taxpayer, we will turn first to the resources of the Iraqi government and the international community"

-Donald Rumsfeld, 2003

"The costs of any intervention would be very small."

-Glenn Hubbard, White House Economic adviser, 2002

"They can finance, largely finance the reconstruction of their own country. And I have no doubt that they will."

-Richard Perle (who stands to make a personal fortune from selling Iraqi oil to foreign interests)
2002

"It is unimaginable that the United States would have to contribute hundreds of billions of dollars and highly unlikely that we would have to contribute even tens of billions of dollars."

-Kenneth Pollack, former director for Persian Gulf Affairs, National Security Council. 2002
(The cost has surpassed half a trillion so far, not including the half trillion annual interest on the debt and it's likely to run to three trillion in total.)

" Under every plausible scenario, the negative effect will be quite small relative to the economic benefits."

- Lawrence Lindsey, White House economic adviser. 2002 **

So how many used ideas would you like to buy from this party of geniuses, you stupid Liberal?

**Quotes, thanks to the Institute of Expertology

Bread lines in Paradise

"The numbers are going through the roof. We think we are only seeing the tip of the iceberg"

said the Salvation Army volunteer. It seems that all of a sudden middle class families aren't contributing to local food banks any more, they're showing up hungry because they have to choose between going to work, filling their prescriptions, paying bills and eating. Air conditioning is being switched off in the oppressive heat and humidity of a Florida summer. Bush's recent experiment in socialism and wealth redistribution seems to have had results as ephemeral as the prizes on Queen For a Day. The $600 was gobbled up and disappeared in a flash. Fewer and fewer economic prognosticators see any end in sight. Efforts to pretend we're not in a recession seem increasingly strained if not comical.

Donations to food pantries are down by 30% and the number of people showing up looking for food is up by 50% in some places. Layoffs, foreclosures, medical bills have to be weighed against fuel and food costs. It's a question of survival. The Florida Treasure Coast is home to some of the world's wealthiest people. Nearly all of them seem to be committed Republicans and Bush received heavy support here. There are no Democratic candidates for local offices. I can't get through a day without hearing angry remarks about liberals taking God off the money and out of the Pledge." You still see "W" and "Under God" stickers on cars.

Even more comical are the passionate screeds I receive by e-mail, warning about how Barak Obama is going to ruin the economy if elected. Higher taxes will make our economy collapse, they assert despite the lessons of history and despite this latest evidence of the idiocy of Bush's dumbed down and more crooked version of Reaganomics.

The letter I got last night had the audacity to blame our economic decline on Bill Clinton and his high taxes, Bill Clinton and his failure to attack bin Laden, Bill Clinton and his emasculation of our military. It blames Liberals for making it too hard to criticize a black candidate although it continually reminds us that Obama's father was black. It's hard to believe this is the work of a believer and not of a propaganda mill, but it was forwarded to me by someone who believes it all, hates Obama and inexplicably is a lifelong Democrat.

Election time is always slime time in America, but it's also a reminder that Americans aren't rid of racism, don't give a damn about freedom or prosperity or about their fellow citizens. We care about our taxes. We bitch about our taxes and we blame everything but the weather on the fact that we have to pay taxes to pay for what we think grows on trees. We still look for a president who is a chimera composed of pieces of a South American General and a South Georgia preacher who was born in a log cabin and shares our distaste for paying our bills and loves a big military parade with marching bands. McCain is a "military man" and Obama is not -- easy decision.

Democracy is for adults. We're not and I'm finding it harder and harder to give a damn about this country's future.

Leave them laughing

George has a habit of making an ass of himself when he's with the power elite he was born into and thinks the cameras and microphones are off. At a June 18th fundraiser, the Real George Bush stepped up to the mike thinking it would all be off the record, but somehow missed the fact that a camera was still on.

A video of Mr. Cocky joking about the privations of living on "government pay" for 8 years and about how housing prices haven't fallen enough to please him yet, begins with comments from the Harvard MBA about how Wall Street has to stop trying to do "all these fancy financial instruments." It first appeared on You Tube but it has now disappeared -- I wonder why -- but you can still see it for the moment on Raw Story. Enjoy watching him laugh it up with his cronies while they foreclose on your house and you're reading the classifieds looking for work you can still afford to commute to.

Still looking for a President you can have a beer with? Think John McCain the millionaire is going to come over to your house to watch the game and laugh at your jokes about rich people and liberal elitists?