First, let me offer you comfort in the fact that a stunning realization found media nirvana this past week when Fed Chairman Bernanke announced with supreme and superfluous clarity, “The country would be well served by a better process for making fiscal decisions.” You don’t say Mr. Chairman!
Still well behind the times and economic realities, consequent to well-seasoned monetary policies, the Chairman managed yet another advanced-curve pronouncement when he stated, “The quality of economic policy-making in the United States will heavily influence the nation’s long-term prospects.” Could it be that Mr. Bernanke may be the most recent first-in-class graduate of the Nancy Pelosi School of Forward Thinking Proven Failures graduate program for the Oxymoronic or Neo-Lucent?
From well outside the box of New World Dis-Order Paradigm Assembly Building (PAB) structure there sits a very lonely man. Barrack H. Obama, President-One-Term-Possible of these United States and he has a rather severe problem; the simple axioms of disorder long the custom of community organizers-in-jest just doesn’t seem to work in the juggernaut of political America-run-a-muck and his cursed do-nothing-congress metaphor just doesn’t seem to have the bite his handlers expected or for that matter, neither does the GOP. Moreover, when his friend and co-dis-orderly, Mr. Bernanke, states that “Most of the economic policies that support robust economic growth in the long run are outside the provinces of the central bank.” Complexities such as these interfere with his more robust and creative side which trends toward the recently installed West-Wing CFL’s (Compact Fluorescent Light bulbs for those wretched few who haven’t bought in to the e-ruse) suddenly retiring as staffers rush to cover or simply rush to the nearest exit.
So certain to please, so little time; so much change, so much damage! A possible epitaph for the wall of great mournings; right up there with Nixon’s “I’m not a crook,” Clinton’s “I did not have sex with that woman” or George H.W. Bush’s “Read my lips” recitations.
Washington is aplenty with self-anointed deities each in their own way testing the boundaries of the pyrrhic-syndrome where nothing but the seemingly unreasonable, unconscionable and irrational are worthy of approach. From the extravagant lunacy of unsustainable healthcare programs, legislation for Wall Street Reform that includes no reforming component, a 12 Member Super Committees formed to accomplish what no Congress in the last 100 plus years has been able to manage and right on down to the Academic Economist whose temerity suggest that the Fed should encourage inflation on the grounds that it will reduce unemployment and aid in reducing household debt. At the moment, the only diagnosis my softer-side can muster is something along the lines of: Moderate to severe short-term memory problems.
So what of the President and the remains in the New World Dis-Orders bag-o-tricks? Surely the Counsel of the PAB in their near infinite wisdom has some strategic nuance or nascent elixir for the economically challenged or entitled elite. Let’s review the body of work thus far and assign a success/failure grading mechanism and perhaps we might spot a future trend:
- Massive military spending for global maintenance of economic interests: Success
- Dismantle and Relocate (transfiguration) off-shore Wealth Creating and Sustaining Economic Capacity: Success
- Subsidize Economic Transfiguration by/thru explosive growth in Government Entitlement Programs: Success
- Orientate Oppressive Revenue Collection Practices directly at the Productive Segments of the U.S. Economy: Success
- Subsidize Corporate Transfiguration toward Multinational Entities of no domestic allegiance: Success
- Mutate structural design and intent of Constitutional Principles in favor of more malleable and situational appropriate alternatives: Success
- Foster and endorse by all means necessary the premise that Debt-Accumulation is the equivalent of Wealth, Inflation Fosters economic well-being and the notion that Government can Tax Productivity into Economic Expansion: Success
- Subsume National Monetary Policy and fiscal discipline to global monetary monopoly whose sovereign duty is to its own self-preservation at-all-cost model: Success
To name just the few of these noteworthy achievements is to also illustrate how magnificent the Grand Bargain truly is and how supremely malignant its outcome; particularly if one is prone to the now seemingly abstract and benign notions of Individual Freedom and Liberty. But who’s counting; it appears the numbers of those who care to are dwindling. So much Success in achieving Failure; it is truly remarkable.
President Obama’s Job Strategy, if we consider the Grand Success of the equally Grand Bargain, is actually quite limited but then again it seems to have been the plan all along. After all:
“Freedom to choose must never include the freedom of choice!”
It is undeniable that President Obama is trapped by an ideological truce, an ideological conflict in conflict with itself and one of his own making. Regardless, the fact remains there’s little he can do unless of course he’s willing to reverse course and oppose the very paradigm that swept him in to office and let’s be frank, that’s not likely to happen. The Fed’s secret box of print-on-demand policies has clearly run its course and the only thing left for Bernanke is to do more of what Fed has been doing: Low interest rates and endless printing of Presidential flash-cards – at least for now until the Globalized Feds Heil-Marta play is activated.
No it’s inevitable that Mr. Obama will resort to the only strategy of choice which remains and for Americans, I assure you, it is no choice at all. Expect to see any or all of the following raise taxes, increase spending and various faux economic enhancement schemes as part of his soon-to-be released Jobs/Stimulus Program:
Tax Surcharge on the Wealthiest of Americans.
Be aware that even if you double the taxes paid by the Rich the revenue generated will still be insufficient to pay the annual interest payments on the Federal Debt.
Extension of Payroll Tax Cuts.
A bit on the idiotic side particularly if you consider that Federal Tax Revenues are already on-the-slide and never mind the fact that this reality creates even greater Deficits.
Public Infrastructure Improvements.
Yet another illusion of Government Debt-Accumulation creates economic health and never mind the fact that Gov’t project are always prevailing-wage based which adds 27-32% to contract costs.
More Free Trade Deals.
One has only to look at the explosion in the U.S. Balance of Trade to come to the conclusion that if the U.S. is not exporting in excess of its productive capacity one can only be left to conclude that what we are or have to export is does not include value-added commodities and judging from our own Industrial, Mine and Agricultural output this statement is irrefutable. The commodities of wealth are no longer produced in the U.S. and the fact of the matter is no Country in need of a product or commodity will approach a Nation that doesn’t produce a product in demand. This single trade fundamental identifies the single greatest flaw in the economic doctrines promoted by The John McCain Counsel on Global Economic Interconnectivity.
What to do about the death-spiral in U.S. Real Estate Markets? If this issue sees the round-table at Court I will be surprised however unlikely it may be it would truly be an appropriate move and one I favor. To date, the only beneficiaries of the Mortgage Bailout has been the Banks and Wall Street apparatchiks. If the Federal Government truly wants to make a move with significant benefit to the economy they will need to address the problem at its core weakness: The Home Owners. The plan we’ve developed requires far more space and time than this forum provides so let’s just cover the hi-lites: (1.) The Program is only applicable to those whose original Loan-to-Value ratio at time of funding were at 90% or less, whose FICO Scores are at 680 or above (or who can demonstrate durable ability to pay) and are current debt-service status. (2.) The program is applicable to Owner-Occupied primary residences and/or 2nd Homes. (3.) The program is simply this: Reduce loan amounts to a level no greater than the LTV at orgination and based on current appraised value of the subject property. Provide the homeowner with the option to recast the new loan balance based on the remaining term of the existing loan based on existing payments however in no event is the term to be greater than that of the original loan amortization period. This is, in effect, a direct write-down of existing mortgages. I emphasize, these are not to be refinance (type) programs so as to confine the losses to the holders of the loans. I understand and well anticipate the objections however this is the only viable solution to stabilizing the residential housing market. I’ve looked at and worked no less than eighteen separate models/scenarios and this approach by far is the only survivable strategy, bar none. It’s so good government will likely never consider it. Anything short of it however will only be of benefit to the Banks and Financial Markets and further burden to the U.S. Taxpayer.
Not lost in the list of likelies are the patent reform, immigration work-visa-for-life and unemployment benefits extensions programs but to be quite clear, not only has the public grown weary of this retread drivel but to be even more in-tune and in-touch, Global-Corporate no longer cares to or is designed to survive and prosper on its own merits, in truth and in its present form the once vital organism is no longer capable of functioning as a stand-alone; it has, like Government and most Americans, grown too accustomed to having no reason to succeed.
Tragically, far too many actually believe the entire Illusion is real!
“On to the galleries of Illusions where masses rally, comfort and defy. Aloof and feckless, strings in tune, self-musing whilst the bromide ferries discord and sweetly whispers, ‘it’s yours the price is free.’ Rehearsed and well-repeated keeps the rhyme alive so long as ye remain convinced Illusions never Lie.”
Curtis C. Greco, Founder