Category: Debt Load

The Rate of the Wait; The Cost of the Lost

The magnitude of the money required to service the interest costs generated by the public debt is stopping for no one.

With respect to its costs; the rate to wait has benefited no one save the administration which has not missed a beat in every opportunity to turn a blind eye on housing …while jabbing the financial sector in the eye with a sharp stick.

Once upon a time, not too long ago …I lived in Hungary at a time in which the rate of inflation was running at 33%. As high as that may have been …it was a promising time. People were full of hope and looking towards a brighter future. And as bleak as 79 % effective tax rates were, optimism was running rampant.

Unlike what we have here in the U.S.A. today, there and then …the velocity in the Hungarian market could only be characterized as torrential. Money was moving at an amazing spead. Opportunity was in the air.

However, here …overall broad spectrum inflation has not raised its ugly head here …now, primarily because velocity is anemically low …and whatever inflation currently exists has been rather limited to commodities in a low demand …low growth environment.

Know What I Mean Maynard?

  Know What I Mean Maynard?         Dear Vern, Do you recognize the following quote? “The market can remain irrational longer than you can stay solvent.” It […]

The Fed’s New AAA = BOA’s New Balance Sheet Tool

Here’s a novel organic idea for the Federal Reserve Chairman today …one which dose not rely on printed …or borrowed money to craft ..draft …implement and execute.
Actually, after thinking of this for a while …I think this monumental idea has more to offer the banking industry …Bank of America for one …above all.
I say so, because bank of America is scrambling about …trying to raise capital at a time when cash is king.
And if there ever was a cash generator, this idea has huge potential to rock and roll …recapitalizing an anemic sector like gang busters …like the Dallas Cheerleaders at halftime.
Shoot, I bet Timothy Geithner could figure a way to securitize and market this idea’s exotic specialized product’s potential.

Bring back the exotic specialized products division …in safety …with an eye …whose oversight measures actually support honest home ownership.

Capital!

What is this idea?

Offer increment interest- breaks as incentives to home buyers as a measure and form according to the skin they bring to the table at closing.

In other words “…Skin for A Time Out.”

More skin would translate to a greater “…more time out” period.

S&P Grade; Looking A Gift Horse In The Mouth

Friday evening, I was reading and listening to as many media resources …such as I could get my hands on …so as to get a grasp on the various media takes on the recent S&P downgrade of America’s Credit.

My take away from the deluge of the various news agencies offered me a unique and insightful view on number of wide-ranging variety of takes on this news moving forward.

After learning of this event; this is what I believe I found out in my approach to the media’s window

The Costs of Artificial Global Monetary Policies

Is Down The New Organic?

Not Hardly!!!

Or, Is Down The Demise …of A New More Organic Reality …One Forever Gone Missing?

If So, Then, Falling Is A Price For Artificial’s Failing

…A Boldfaced Lie!

Containment?

After All, Make The Bed — Sleep In It.

Contagion!

Artificial Global Monetary Policies — A Bed Too Narrow …Too Short.

A Squeeze Which Can Not Be Covered

The long-winded title of this piece is a forward looking opportunity whose reality may only be realized …if and only if ….global artificial monetary policy is taken …seriously …within respect to the proportionally larger object in our rear view mirror.

So, as woe be Europe and the other global economies …woe be US.

Artificial Monetary policy applies to the title in that it could also be titled more appropriately; What Goes Around …Comes Around.

So, in the wake of QE-1&2 …just when you thought that it was safe to go into the water …..jaws-III European and World style!!!

Dwarf that …if you care to try!!!

Kudos For A First Step To Move Us All Forward

To Rand Paul:

Kudos for speaking your mind today Rand Paul!!!

You are so right in one respect. This vote to raise the debt ceiling is not going to stop the annual deficits’ from contributing huge sums to the debt. Your are right this bill will not stop the fact nor the affect that each yearly deficit will continue to grow the public debt.

In this, this still will not much alleviate the huge sums which still need to be borrowed in order to sustain the spending habits necessary to support the governmnet in a lean revenue environment …one in which tax receipts are still a very scarce and harsh reality.

The paradox of reality’s pain has not yet well embraced.

Otherwise, it would have been more than well met and dealth with the necessary degree of resolve demanded in principal and scope by means which would have otherwise …resolved …long ago …to reconcile our debt in and with a rather greater certain measure of calm fiscal sanity.

And you are right that it will merely slow it down a bit …still allowing the debt to grow by 7 trillion dollars …rather than 11 trillion over the next ten years.

I understand why you declared tonight that you will not vote for the Bill when the House Bill is presented to the Senate.

On principal, it is no wonder why …over 60 Republican Nay VOTES were recorded in tonight’s House Vote.

Harry Ried’s Game Let’s You And Him Fight

In consideration of all of Senator Reid’s digs and innuendos’ …his pat answers make no more than one gigantic piece of work …which is still not going to work for “…We the People …”

His scripted sound bytes have even gone as far as to suggest that former President Regan’s deficits bear a strong resemblance to today’s debt’s relative magnitude.

Bunk!

For one, to suggest such is to obviate …overlook and turn a blind eye to the fact that today …the health of the economy and the prevailing lack of confidence herein …only causes today’s deficits and prevailing economic malaise …to pale …when …and if …truth be told …is allowed to serve as a more sobering measure of a more truthful comparison.

Therein, the Senator’s drivel doesn’t make for a stable leg to stand on before making such broad sweeping comparisons …those whose logic and arguments are both untimely and can hold no water.

A cracked cistern can hold no water …such a cracked pot not withstanding.

Money Market & Retirement Accounts’ Backstops vs. Downgrade

What would a downgrade to U.S. Public debt mean to Treasury-backed Money Markets and reitirement accounts whose security profile requirements stipulate that they must be backed by no less that AAA grade securities?

Answer that …would you?

Inside The Senate’s Old & New Debt Limit Proposals

Inside The Senate’s Old & New Debt Limit Proposals

Someone’s Milking Your Cows

Who in their right mind would openly welcome …let alone, invite a jab in the eye with a sharp stick?

For a look-see of a chart of the deficit, follow this link:

http://www.msnbc.msn.com/id/42902760/ns/politics-more_politics/t/can-automatic-spending-cuts-solve-deficit-dilemma/#slice-3

If this is Indicative of business as usual; how dangerous would it be to place a bet on the come?

I would suggest yes on both accounts …an example of assumption on a grand scale …the likes which equate to …the value of real estate will never fall …but, continue to rise forever.

Or, how about trying this assumption on for grins and giggles: America can afford business as usual …for as long as it takes for value to return …when property values stop falling …like a knife?

These assumptions bet on the come.

Cut, Cap & Balance

In my humble opinion, there’s got to be a better way to safeguard fiscal sanity other than by putting a chastity belt around the federal government’s purse strings.

They put muzzles on mean wild dogs don’t they?

Horses and stagecoaches come equipped with reins, yes?