BO Economics – make the FAT CATS fatter they will bankroll your next election - hold up the USD and issue as much as possible debt as the EUR is falling apart because of Greece Ireland Portugal and possible Spain
Blowing smoke to divert the real problem with the assistance of the talking heads and WS shills - last few months and this year in general financial markets where obsesses with the PIGS, because their budget deficit woes.
2.bp.blogspot.com
I was wondering why the States within the US where not mentioned. The map provides the secrets that few talking heads will mention - the State’s budget deficits within the US, if added to the US Federal deficit is by far bigger that the troubles plaguing Europe. Small US banks are being closed or taken over by the FDIC almost weekly, but that does not matter to this BO administration.
The continuation of the slide in housing prices puts an additional crimp on state and municipalities budgets. RE Taxes are calculated based on a percentage of the dwelling value, but with falling prices the RE taxes are also sliding and increasing the budget deficits of the States and their municipalities.
To save on expenses state and municipality employees are fired which in turn puts even more pressure on housing prices.
Only sharp inflation and a rise in dwelling prices will save the day or a much cheaper USD.
In the meantime Illinois is borrowing money to pay its current bill at a rate of 1% per month.
Quinn Weighs $15 Billion Bond-Sale `Option' to Close Illinois Budget Gap - bloomberg.com
Illinois faces a budget shortfall of at least $13 billion because of declining tax revenue. The state Senate in November didn’t have the votes to approve the borrowing of $3.7 billion to cover pension-fund contributions for the fiscal year that ends June 30.
The cost of insuring Illinois’s bonds against default rose to the highest level in five months as the state headed for the new year without a plan to finance the pension-fund contributions. The cost of credit-default swap insurance on the lowest- rated state after California has risen 16 percent since Dec. 3 to $330,000 to protect $10 million of debt, from $285,000, according to data compiled by Bloomberg. That’s the most expensive since July 12, when it reached $335,000.
Those are my 2 cents
As a follow-up to my e-mail of yesterday and other e-mail form about a month ago.
voices.washingtonpost.com
businessinsider.com
The US was an attractive place for millions for the last 30 years, millions of talented Chinese Indians Russians etc. people immigrated to the US if for studies or starting a new life. This immigration of highly skilled people fueled US economic growth innovation and ever rising housing prices.
The attractiveness of the US is fading fast since the DOT.COM bust, manufacturing was "holed up" to improve productivity and most products and services are "farmed out" to Asia.
For decades neither Nike, Liz Claiborne HP, Apple and scores of other well-known manufacturing companies do not manufacture in the US anymore.
The net result is that those that immigrated before into the US are leaving for their homeland mostly within Asia and there is a chronic overhang of empty and unrented dwellings, putting pressure on prices and lowering the tax revenue of States and Municipalities within the US.
IMHO the net result will be great turmoil in the currency markets after those facts will start to sink in with all the "talking heads" and so called "financial experts/analysts"
An interesting report by Deborah Lucas and David Torregrosa of CBO’s Financial Analysis Division that was not mentioned in the press can be found at this site cboblog.cbo.gov
Haim |
