“Top Democrats and Republicans in Congress prepared new proposals to avert a government debt default and a potential global financial crisis.”
That’s the lead paragraph from a story in today’s paper. What should scare you is when Democrats and Republicans agree on something the public generally gets screwed. I believe that both sides realized that they set up this “battle” and now that the public is watching they are not sure how to get out from all of the rhetoric that they have been spreading. What both sides agree on is that they both want desperately to get re-elected and regain power. Even a little power is better than none and they are more than willing to squander our money, our children’s money, and our grandchildrens’ money to maintain their power. Here are few facts as I see them:
Many times as I read an article I find a few sentences that capture the essence of the piece. In “Phrase-e-ology” I’ll post some thought followed by key phrases. As always I’ll have a link (in blue) to the original article.
The latest episode of Phrase-e-ology is from the business section and was startling in that it seems to be making the case for the sluggish recovery as the “new normal” rather than the direct result of bad economic policy from the Obama White House. As if this is now how we should expect recoveries to unfold. Even as Obama’s economic advisers abandon his ship for academia (they’re much better at theory than reality) the “new normal” may actually be some sub-standard level that he can actually achieve…as long as he can fool the electorate that they are doing better…
No this is not a post about the American peoples’ rejection of Obama/Pelosi/Reid/Washington politics. Many others are having fun welcoming the Republican wave that swept away many notable Democrats…though not nearly enough. Jerry Brown as governor? California you have got to be kidding me. I am holding in a wait-and-see position having been sorely disappointed by Republicans far too many times.
Unbeknownst to many Americans the Federal Reserve (The Fed) had scheduled a meeting today to decide future monetary policy. I find it interesting that they chose the day after a hotly contest mid-term election to meet and announce their policies. The centerpiece of their plan is Quantitative Easing 2 (“QE2”). The Wall Street Journal describes QE2 as:
So why does the average American accept economic policies that are bound to bankrupt this country? Logic tells us in our personal lives tells us that if we spend way more than we make we incur debt. Anyone who has ever had a loan or a credit card balance knows that there are interest charges on that debt which must be paid on a monthly basis. When we still keep spending beyond our means our debt increases and so does our monthly payments which a greater percentage of goes to pay the interest on the debt.
For those of you who don’t play or watch poker, a tell is something a player does that tips off his opponents to the quality of his hand. A twitch of the eye, becoming too chatty, different breathing, or even becoming quiet all of a sudden can give your hand away. In head to head competition allowing your opponent to know your hand will ensure an eminent loss of chips.
I think that Americans can only hope that President Obama is one heck of a bluffer as he doesn’t seem to be holding his hand close to his vest: