With the recent ruling by the Supreme Court pertaining to the Arizona immigration law, most pundits have focused on the subject of the “show me your papers” clause. However, for African Americans what is more interesting and significant is the dissenting opinion proffered by conservative Justice Antonin Scalia.
In his own words, Scalia wrote: “Today’s opinion, approving virtually all of the Ninth Circuit’s injunction against enforcement of the four challenged provisions of Arizona’s law, deprives States of what most would consider the defining characteristic of sovereignty: the power to exclude from the sovereign’s territory people who have no right to be there,” Scalia’s opinion said.
“In other words, the naturalization power was given to Congress not to abrogate States’ power to exclude those they did not want, but to vindicate it.”
What is interesting is that to support this, Scalia criticizes Obama's immigration policy by relying on pro-slavery laws excluding free persons of African descent from much of the south to justify allowing Arizona to target undocumented immigrants: “In the first 100 years of the Republic, the States enacted numerous laws restricting the immigration of certain classes of aliens, including convicted criminals, indigents, persons with contagious diseases, and (in Southern States) freed blacks. State laws not only provided for the removal of unwanted immigrants but also imposed penalties on unlawfully present aliens and those who aided their immigration.”
This means that Scalia believes that the passing of the 14th amendment to the US Constitution was ratified on July 9, 1868 during the Reconstruction era along with the 13th and 15th amendments, which are collectively known as the Reconstruction amendments, are unconstitutional. Four principles were asserted in the text of the 14th amendment which state that “State and federal citizenship for all persons regardless of race both born or naturalized in the United States was reaffirmed, No state would be allowed to abridge the "privileges and immunities" of citizens, No person was allowed to be deprived of life, liberty, or property without "due process of law, and No person could be denied "equal protection of the laws."
It is clear how Scalia perceives individuals that are not white and even worse, that he remains in a faltered world view in which the laws of pro-slavery America are in the best interest for the America of 2012.
------------“I freed a thousand slaves I could have freed a thousand more if only they knew they were slaves.” Harriet Tubman --------------- "everything in this world exudes crime" Baudelaire ------------------------------------------- king of the gramatically incorrect, last of the two finger typist------------------------the truth, uncut funk, da bomb..HOME OF THE SIX MINUTE BLOG POST STR8 FROM BRAINCELL TO CYBERVILLE
Saturday, June 30, 2012
Friday, June 29, 2012
Affordable Care Act May not be too Affordable for Many Blacks in the Long Run
The November Presidential election became a little bit more
exciting. Upon its 5 to 4 affirmation of
“the Affordable Care Act, the Supreme Court has set the stage for what will be
a dramatic political circus. With the
deciding vote, Chief Court Justice Robert’s wrote the opinion for the majority
and outlined the limitations of the court and the constitutionality of what is
called Obama care in a fifty-nine page opinion.
This is a major victory for the Obama administration and his historical legacy. The question remains however, it is yet to be determined if the Affordable Care Act will be affordable to lower income and minority populations, or the inability for many to pay fines for services they cannot afford, will result in prison terms as mandated by the law.
In simple terms, the government can mandate that people be
forced to buy health insurance from the small group of companies that
monopolize the market. The Court avoided
the issue of addressing the Commerce Clause by ruling that it was merely a tax
instead. The decision was split on party
lines. Conservative Justice Anthony
Kennedy asserted that in additional to the other three conservative jurists;
their preference would have been to strike down the entire law. This is the
first time in US history that the courts have supported a requirement for
American citizens to enter a contract with private corporations to purchase a
product or service. Many like Dr. Ron Paul fell that the law is a clear
violation of Article 1, Section 8 of the United States Constitution. He states that regulating “commerce cannot
include the power to compel commerce.”
In the long run, it is yet to be known how this decision may
impact African Americans. There will be
both good and bad. However, the law’s
requirement that some individuals will have to pay a financial penalty for not
obtaining health insurance as being a reasonable tax may be damaging to many,
in particular given the massive disparity in income, net worth and unemployment
among African Americans. As it currently
stands, ACA requires that all citizens must have health care coverage or face a
penalty of 2.5 percent of their income. In addition, the court limited the Medicaid
provision which would have expanded coverage to those under the age of 65 who
earn less than $30,000 a year for a family of four. This would have expanded coverage to an
additional 16 million Americans.
This is a major victory for the Obama administration and his historical legacy. The question remains however, it is yet to be determined if the Affordable Care Act will be affordable to lower income and minority populations, or the inability for many to pay fines for services they cannot afford, will result in prison terms as mandated by the law.
Thursday, June 14, 2012
Tuesday, June 12, 2012
Friday, June 08, 2012
Wednesday, June 06, 2012
Friday, June 01, 2012
Thursday, May 31, 2012
Israel: Like Apartheid and 1960s South, If You Black You called Nigger and Beat Too
Maybe it is me but it strikes me as strange that first, all we hear about with respect to civil and human rights being violated pertains to Syria and there is no mention of Sudan, and two that for some reason the Obama Administration, the Congress and mainstream media has been extremely hush hush about Israel. Whether it involves the $1 billion for Israeli missile projects the US House of Representatives allocated for the 2013 fiscal year for Israel’s missile systems via the House Appropriations Defense Subcommittee appropriated USD 947 million for the Iron Dome, “David's Sling” and a long-range Arrow missile program; or how recent actions of the Zionist nations, in both statement and action are reminiscent of Apartheid and the southern United States circa 1960s. The prior in addition to the $5billion a year that Israel already receives in grants and don’t have to pay back.
This is very disturbing to me in particular when our politicians want to jump around and turn up about being ready to protect human rights in Syria, yet seem to have money for Israel and not the millions of American citizens suffering at home. Not to forget all the time proclaiming we should stand for what is just around the world as the preeminent nation state in the world but say nothing when Jews call Africans nigger and beat them violently like the righteous citizens of Georgia, Alabama and Mississippi did to African Americans. Susan Rice even has the audacity to get on her high horse suggesting action in Syria will never even mentioning the Sudan or what African immigrants are suffering under the rule of the world’s only Zionist state.
In the predominately black neighborhood of Hatikva large groups of nationalist protesters who are vehemently open against African migrants have instigated a reign of terror similar to Nazi and KKK hate groups of past around the world. The Jewish protesters claim the Africans are responsible for a rise in crime, and were holding signs that read "This is not Africa" and "Stop talking, start expelling". They even yelled "Blacks out!" and "Send the Sudanese back to Sudan".
The mob set fires and smashed the windows of shops owned by Eritrean migrants, threw rocks at them and violently beat up Africans walking through the streets. According to one Nigerian witness, "A group of about 10 or 15 boys stopped one black kid cycling on his bike. They pulled him off and were punching and kicking him in his head. The police just stood and watched until it got really out of control." The even beat women carrying their infants and stopped buses to search for African passengers.
The United States gives more military aid to Israel than to any other country, although there is really not in the national interests of the United States or any net strategic advantage to the U.S. in sending weapons to Israel when compared to spending the same amount of money on improvements at home. Why is the question because the state of Israel and Zionism is the antithesis of democracy? Factually speaking, Zionism is a racist political philosophy in the same vein as Nazism, and Apartheid. As a nation, the daily actions often consist of those we once saw in South Africa. These include millions of non-Jews who are under curfew and blockade, starving and brutalized, in the Middle East's only colonized state. This is not a wild exaggeration when we study the writings and speeches of racist Vladamir Jabotinsky, father of revisionist Zionism.
Zionism like racism espouses an independent and sovereign Jewish state, in a land where there is no Jewish majority and exists only insofar as it has been allowed to expelled the people of Palestine from their homes, although it is against their basic human right guaranteed by Article 13 of the Universal Declaration of Human Rights. Meaning it is impossible for such to be a democratic principle when only one community and people benefit from such and not others. I can say this with ease being a logically thinking person since facts demonstrate that Zionism absolutely requires that Palestinians and even Africans, as non-Jews, were forced to leave in 1948 and never be allowed to return - blatant racism.
What these recent attacks on Africans show are that all who are not Jewish in a Zionist state will be confronted with considerable discrimination. It is even more lucid and totally obvious the force behind the policies of the present and all past Israeli governments in Israel and in the occupied lands was designed and implemented to assure the predominance of Jews over other racial-ethnic groups. For when a powerful nation like Israel that “kills hundreds of civilians from another ethnic group; confiscates their land; builds vast housing complexes on that land for the exclusive use of its own nationals” and does not offer equal protection to non Jews, that is not democracy but racist.
What has just happened and continues today, without any major media news coverage is racism at its worse. In particular when speakers at such events include prominent politicians, like Knesset ministers Miri Regev, Danny Danon, Yari Lev
in and Michael Ben-Ari. Ms Regev during here address to the crowd even described African immigrants as a "cancer in our society". Danny Danon, a member of Benjamin Netanyahu's Likud party, wrote in a Facebook status later the same evening: "Israel is at war. An enemy state of infiltrators was established in Israel, and its capital is south Tel Aviv."
There are around 60,000 African asylum seekers in Israel, most from Eritrea and Sudan. Although she did not retract her statements, Ms Regev stated "Israel should adopt the US protocol of returning infiltrators to the border within 72 hours ... Jews and Israelis are scared of living in their country," she said although only non-Jews were the objects of violence. Mr. Danon's desires to deport the city's African residents “to detention facilities and remove Africans from population centers".
Obama and Susan Rice cannot turn a blind eye to this as well as the average American citizen. Fromm my perspective, I cannot have a disdain for what is going on in Syria without have the same bad taste for Israel and their treatment of Africans or the massive deaths occurring daily in the Sudan (more than Syria). Racism and xenophobia are huge problems in Israel society that we ignore as a nation. We should hold Israel’s feet to the flame as we do other nations, making them abide by the 1951 UN Refugees convention since Israel is one of the signatory nations. If we do not, we will at least learn something, that In Israel if you are black, the call you nigger too and beat you like the KKK and white citizens councils did across the South in America.
This is very disturbing to me in particular when our politicians want to jump around and turn up about being ready to protect human rights in Syria, yet seem to have money for Israel and not the millions of American citizens suffering at home. Not to forget all the time proclaiming we should stand for what is just around the world as the preeminent nation state in the world but say nothing when Jews call Africans nigger and beat them violently like the righteous citizens of Georgia, Alabama and Mississippi did to African Americans. Susan Rice even has the audacity to get on her high horse suggesting action in Syria will never even mentioning the Sudan or what African immigrants are suffering under the rule of the world’s only Zionist state.
In the predominately black neighborhood of Hatikva large groups of nationalist protesters who are vehemently open against African migrants have instigated a reign of terror similar to Nazi and KKK hate groups of past around the world. The Jewish protesters claim the Africans are responsible for a rise in crime, and were holding signs that read "This is not Africa" and "Stop talking, start expelling". They even yelled "Blacks out!" and "Send the Sudanese back to Sudan".
The mob set fires and smashed the windows of shops owned by Eritrean migrants, threw rocks at them and violently beat up Africans walking through the streets. According to one Nigerian witness, "A group of about 10 or 15 boys stopped one black kid cycling on his bike. They pulled him off and were punching and kicking him in his head. The police just stood and watched until it got really out of control." The even beat women carrying their infants and stopped buses to search for African passengers.
The United States gives more military aid to Israel than to any other country, although there is really not in the national interests of the United States or any net strategic advantage to the U.S. in sending weapons to Israel when compared to spending the same amount of money on improvements at home. Why is the question because the state of Israel and Zionism is the antithesis of democracy? Factually speaking, Zionism is a racist political philosophy in the same vein as Nazism, and Apartheid. As a nation, the daily actions often consist of those we once saw in South Africa. These include millions of non-Jews who are under curfew and blockade, starving and brutalized, in the Middle East's only colonized state. This is not a wild exaggeration when we study the writings and speeches of racist Vladamir Jabotinsky, father of revisionist Zionism.
Zionism like racism espouses an independent and sovereign Jewish state, in a land where there is no Jewish majority and exists only insofar as it has been allowed to expelled the people of Palestine from their homes, although it is against their basic human right guaranteed by Article 13 of the Universal Declaration of Human Rights. Meaning it is impossible for such to be a democratic principle when only one community and people benefit from such and not others. I can say this with ease being a logically thinking person since facts demonstrate that Zionism absolutely requires that Palestinians and even Africans, as non-Jews, were forced to leave in 1948 and never be allowed to return - blatant racism.
What these recent attacks on Africans show are that all who are not Jewish in a Zionist state will be confronted with considerable discrimination. It is even more lucid and totally obvious the force behind the policies of the present and all past Israeli governments in Israel and in the occupied lands was designed and implemented to assure the predominance of Jews over other racial-ethnic groups. For when a powerful nation like Israel that “kills hundreds of civilians from another ethnic group; confiscates their land; builds vast housing complexes on that land for the exclusive use of its own nationals” and does not offer equal protection to non Jews, that is not democracy but racist.
What has just happened and continues today, without any major media news coverage is racism at its worse. In particular when speakers at such events include prominent politicians, like Knesset ministers Miri Regev, Danny Danon, Yari Lev
in and Michael Ben-Ari. Ms Regev during here address to the crowd even described African immigrants as a "cancer in our society". Danny Danon, a member of Benjamin Netanyahu's Likud party, wrote in a Facebook status later the same evening: "Israel is at war. An enemy state of infiltrators was established in Israel, and its capital is south Tel Aviv."
There are around 60,000 African asylum seekers in Israel, most from Eritrea and Sudan. Although she did not retract her statements, Ms Regev stated "Israel should adopt the US protocol of returning infiltrators to the border within 72 hours ... Jews and Israelis are scared of living in their country," she said although only non-Jews were the objects of violence. Mr. Danon's desires to deport the city's African residents “to detention facilities and remove Africans from population centers".
Obama and Susan Rice cannot turn a blind eye to this as well as the average American citizen. Fromm my perspective, I cannot have a disdain for what is going on in Syria without have the same bad taste for Israel and their treatment of Africans or the massive deaths occurring daily in the Sudan (more than Syria). Racism and xenophobia are huge problems in Israel society that we ignore as a nation. We should hold Israel’s feet to the flame as we do other nations, making them abide by the 1951 UN Refugees convention since Israel is one of the signatory nations. If we do not, we will at least learn something, that In Israel if you are black, the call you nigger too and beat you like the KKK and white citizens councils did across the South in America.
Tuesday, May 29, 2012
Saturday, May 26, 2012
Americas Biggest Threat is EU Sovereign Debt Crisis not AQAP
Okay, let’s get this straight. The injudicious assertions promulgated by political charlatans on both side of the aisle from Obama to Congressman Pete King that America’s biggest threat is Al-Qaeda in the Arabian Peninsula (AQAP) is feculent and even dangerous. In fact it is one of the more laughable jactitations proffered in recent years and ranks up there with the suggestion that America is post racial or even that Wall Street and bankers can police themselves.
In all honesty as things stand, our truest and greatest threat is the European sovereign debt crisis and not AQAP. For if the chickens come home to roost, with the chickens in this sense being the massive preponderance of complex financial papers and derivatives which remain without a true valuation and inundate the global markets, and then we have seen nothing yet in terms of an economic disaster. I means, what is on the horizon given what is occurring in Europe will eventually demonstrate that what we just observed with regards to JP Morgan-Chase and Jamie Dimon will be just a drop in the bucket.
But instead of giving these events the attention they require and other signals, we ignore them and continue with the small thinking myopia that would advance a HR 1838 (SWAP Bailout prevention act) on behalf of Republicans or an HR 3784 (Gas Price Spike Act of 2012) on behalf of democrats. The later under whom oil companies would be taxed at 50 to 100 percent of profits considered to be “higher than reasonable.” Notwithstanding other distractions whether they concern Mayor Cory Booker’s honest remarks on private equity or the President’s personal opinion on Gay marriage, we never seem to be able to be proactive and address real issues that will impact us more than any of the aforementioned in aggregate. Fact is gay marriage has nothing to do with the US economy.
Bush, followed by the Obama administration implemented massive stimulus that were supposed to grow the economy. Unfortunately, such has not manifested as promised by the Keynesian heavy Obama administration (Bernanke, Krugman and Geithner). By their logic the stimulus was supposed to produce fifty cents of GDP growth for each stimulus dollar spent. But instead of increasing demand, what they did was discourage consumption and investment by the private sector who based on all this talk, rightly expect tax hikes to finance the stimulus somewhere in the near future. Meaning that the stimulus actually squashed the private sector spending it desired to stimulate.
This may be why the CBO recently reported the strong chance of another US recession soon. They predict that the US Gross National Product (GNP) will go negative for at least two quarters, given the eventually ending of the Bush-era tax cuts, the extended unemployment benefits and the reinstating of the payroll tax rates back up to 6.2 percent from the current 4.2 percent. Not to mention that currently as a nation, we spend $454 billion a year just on servicing the interest on the national debt alone. Then there is the $642 billion spent on the Afghan war (this includes this year’s spending). And let us not forget the 11 million homeowners in the US with in excess of $800 billion in negative home equity and you can see we have a big mess on our hands without the problems in Europe.
Starting with the UK, Britain's economy contracted by 0.3% in the first three months of the year, faster than previously thought and pushing the country back into another recession and equal to the contraction in the final quarter of 2011. There has been no growth in manufacturing after last year the sector exhibited a decline of 0.7% at the end of last year. The banking sector also contracted, by 0.3%.
Then there is Spain. Spanish banks’ total loan losses could range between 218 billion and 260 billion Euros, more than currently expected according to estimates by the Institute of International Finance. Spain’s economy is in critical condition with 23 percent unemployment of which 50% percent of those under 24 are unemployed (the highest in the Euro zone) and they are in their second recession in three years. Spain like all the European countries that, are uncompetitive, have high debt levels, and suffer from low savings rates that have been forced down in over the past years - one reason why 16 Spanish banks were downgraded last week.
The picture is no different in Italy which saw Moody‘s Investors Service downgraded 26 Italian banks, where investors are needing higher risk premiums for Italian government bonds on fears that Greece may exit from the euro zone and Italy's double-dip recession . Italy is estimated to have around a debt burden of €1.9 trillion (about 120% the size of its gross domestic product), or about $2.6 trillion).
The reality is all the talking and meeting the G-8 just did wasn’t anything and empty, especially without Russia, China and India in attendance. The realty remains that a Greek euro exit is very likely and soon. If it happens, it will lead to runs on Spanish and Italian banks, resulting in the need for the ECB to give out more credit to keep the banks from collapsing. Although the problem isn’t Greece, but rather that Greek banks are undercapitalized. Greece cannot crash the euro zone alone. But what it may lead to can. If they are allowed to leave, the same will be true for other nations.
Ben Bernanke and the politicians in Washington DC speak of recovery while the facts do not support their contention. Not to forget that it was in the 1970s when Nixon enabled bankers and politicians to print and spend at liberty without a gold standard and a Central Bank owned by Wall Street, has resulted in a country where the cost of things we need to live have risen at twice the rate of our income. The truth is that real inflation has been running 5% higher than government is telling us in spite of what is being told to us by Paul Krugman (that there are very few Americans living on a fixed income being impacted by Bernanke’s zero interest rate policy). Maybe this is why Krugman is so bent on another $4 trillion of debt and a debt to GDP ratio of 130% to get our economy back on track.
Yes we cannot see the big picture. The real US deficit is over $5 trillion. Our policy appears to ignore Greece, which after several years of austerity are in the midst of a full-blown economic depression and they still do not have a balanced budget. The Greek economy has contracted by 8.5 percent over the past 12 months and the unemployment rate in Greece is up to 21.8 percent, is already experiencing a depression that will only get worse. If or when they leave, investor confidence in the euro zone will be damaged forever. Already as a nation America has more government debt per capita than Greece, Portugal, Italy, Ireland or Spain.
Europe is our largest trading partner, especially as it pertains to exports. Yet our efforts are all over the place. Paul Ryan supposed spending cuts really only slow spending to 3 percent annually while Obama increases spending 4.5 percent a year in his budget. No to mention that like the EU zone banks who are undercapitalized and heavily burden with the uncertainty of how much banks actually hold in bad assets, and the potential need for the government to bail them out at the expense of a bigger debt burden, the same is true for US banks.
Economic growth is stalled both in Europe and in America plus there seems to be a lack of concern here and little if any coordination between the EU and US. None of the nations including the US are recalibrating either fiscal or monetary policy which is a must. Reform not stimulus is the answer if we look at the real world examples here and abroad. Both the ECB and Federal Reserve seem to focus on the nations and not the banks and the Obama administration has only tackled the issue from a short term perspective. So what there is a newly revealed Al Qaeda video that calls on followers to launch cyber attacks on Western targets that has Sens. Susan Collins and Joe Lieberman, chairman of the Senate Homeland Security Committee, scared, it aint got nothing on what’s going on across the pond and is nowhere as big a threat to America as the European sovereign debt crisis. Take note you heard it here first.
In all honesty as things stand, our truest and greatest threat is the European sovereign debt crisis and not AQAP. For if the chickens come home to roost, with the chickens in this sense being the massive preponderance of complex financial papers and derivatives which remain without a true valuation and inundate the global markets, and then we have seen nothing yet in terms of an economic disaster. I means, what is on the horizon given what is occurring in Europe will eventually demonstrate that what we just observed with regards to JP Morgan-Chase and Jamie Dimon will be just a drop in the bucket.
But instead of giving these events the attention they require and other signals, we ignore them and continue with the small thinking myopia that would advance a HR 1838 (SWAP Bailout prevention act) on behalf of Republicans or an HR 3784 (Gas Price Spike Act of 2012) on behalf of democrats. The later under whom oil companies would be taxed at 50 to 100 percent of profits considered to be “higher than reasonable.” Notwithstanding other distractions whether they concern Mayor Cory Booker’s honest remarks on private equity or the President’s personal opinion on Gay marriage, we never seem to be able to be proactive and address real issues that will impact us more than any of the aforementioned in aggregate. Fact is gay marriage has nothing to do with the US economy.
Bush, followed by the Obama administration implemented massive stimulus that were supposed to grow the economy. Unfortunately, such has not manifested as promised by the Keynesian heavy Obama administration (Bernanke, Krugman and Geithner). By their logic the stimulus was supposed to produce fifty cents of GDP growth for each stimulus dollar spent. But instead of increasing demand, what they did was discourage consumption and investment by the private sector who based on all this talk, rightly expect tax hikes to finance the stimulus somewhere in the near future. Meaning that the stimulus actually squashed the private sector spending it desired to stimulate.
This may be why the CBO recently reported the strong chance of another US recession soon. They predict that the US Gross National Product (GNP) will go negative for at least two quarters, given the eventually ending of the Bush-era tax cuts, the extended unemployment benefits and the reinstating of the payroll tax rates back up to 6.2 percent from the current 4.2 percent. Not to mention that currently as a nation, we spend $454 billion a year just on servicing the interest on the national debt alone. Then there is the $642 billion spent on the Afghan war (this includes this year’s spending). And let us not forget the 11 million homeowners in the US with in excess of $800 billion in negative home equity and you can see we have a big mess on our hands without the problems in Europe.
Starting with the UK, Britain's economy contracted by 0.3% in the first three months of the year, faster than previously thought and pushing the country back into another recession and equal to the contraction in the final quarter of 2011. There has been no growth in manufacturing after last year the sector exhibited a decline of 0.7% at the end of last year. The banking sector also contracted, by 0.3%.
Then there is Spain. Spanish banks’ total loan losses could range between 218 billion and 260 billion Euros, more than currently expected according to estimates by the Institute of International Finance. Spain’s economy is in critical condition with 23 percent unemployment of which 50% percent of those under 24 are unemployed (the highest in the Euro zone) and they are in their second recession in three years. Spain like all the European countries that, are uncompetitive, have high debt levels, and suffer from low savings rates that have been forced down in over the past years - one reason why 16 Spanish banks were downgraded last week.
The picture is no different in Italy which saw Moody‘s Investors Service downgraded 26 Italian banks, where investors are needing higher risk premiums for Italian government bonds on fears that Greece may exit from the euro zone and Italy's double-dip recession . Italy is estimated to have around a debt burden of €1.9 trillion (about 120% the size of its gross domestic product), or about $2.6 trillion).
The reality is all the talking and meeting the G-8 just did wasn’t anything and empty, especially without Russia, China and India in attendance. The realty remains that a Greek euro exit is very likely and soon. If it happens, it will lead to runs on Spanish and Italian banks, resulting in the need for the ECB to give out more credit to keep the banks from collapsing. Although the problem isn’t Greece, but rather that Greek banks are undercapitalized. Greece cannot crash the euro zone alone. But what it may lead to can. If they are allowed to leave, the same will be true for other nations.
Ben Bernanke and the politicians in Washington DC speak of recovery while the facts do not support their contention. Not to forget that it was in the 1970s when Nixon enabled bankers and politicians to print and spend at liberty without a gold standard and a Central Bank owned by Wall Street, has resulted in a country where the cost of things we need to live have risen at twice the rate of our income. The truth is that real inflation has been running 5% higher than government is telling us in spite of what is being told to us by Paul Krugman (that there are very few Americans living on a fixed income being impacted by Bernanke’s zero interest rate policy). Maybe this is why Krugman is so bent on another $4 trillion of debt and a debt to GDP ratio of 130% to get our economy back on track.
Yes we cannot see the big picture. The real US deficit is over $5 trillion. Our policy appears to ignore Greece, which after several years of austerity are in the midst of a full-blown economic depression and they still do not have a balanced budget. The Greek economy has contracted by 8.5 percent over the past 12 months and the unemployment rate in Greece is up to 21.8 percent, is already experiencing a depression that will only get worse. If or when they leave, investor confidence in the euro zone will be damaged forever. Already as a nation America has more government debt per capita than Greece, Portugal, Italy, Ireland or Spain.
Europe is our largest trading partner, especially as it pertains to exports. Yet our efforts are all over the place. Paul Ryan supposed spending cuts really only slow spending to 3 percent annually while Obama increases spending 4.5 percent a year in his budget. No to mention that like the EU zone banks who are undercapitalized and heavily burden with the uncertainty of how much banks actually hold in bad assets, and the potential need for the government to bail them out at the expense of a bigger debt burden, the same is true for US banks.
Economic growth is stalled both in Europe and in America plus there seems to be a lack of concern here and little if any coordination between the EU and US. None of the nations including the US are recalibrating either fiscal or monetary policy which is a must. Reform not stimulus is the answer if we look at the real world examples here and abroad. Both the ECB and Federal Reserve seem to focus on the nations and not the banks and the Obama administration has only tackled the issue from a short term perspective. So what there is a newly revealed Al Qaeda video that calls on followers to launch cyber attacks on Western targets that has Sens. Susan Collins and Joe Lieberman, chairman of the Senate Homeland Security Committee, scared, it aint got nothing on what’s going on across the pond and is nowhere as big a threat to America as the European sovereign debt crisis. Take note you heard it here first.
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