Archive for September, 2010

Disconnected From Reality

Thursday, September 16th, 2010

US poverty rate: highest since 1994!

China currency manipulation: no doubt about it (Germans, too!)!

So what’s being done?

Poverty? Zero!!!

It appears our leaders think that poverty is a problem of “the other”, which specifically means blacks and browns and gays and non-mommy track women and scientists, but more generally means any American with whom you don’t share empathy, a PAC, or a pension plan: indebted homeowners, the unemployed, nonprofessionals, etc. etc. etc.

China currency manipulation? Off to the G-20!!!

There are few groups of nations in the world who get together more and do less than the G-20, only the G-8 rivals for empty rhetoric, empty promises, and empty “reform”.

Those disconnected from everyday reality are essentially a series of jokes without a punchline.

Gorilla says: “Laugh, clowns, laugh, that’s all you’re offering!!!”

I

Share

No Demand Equals No Jobs

Thursday, September 16th, 2010

Unemployment claims remain high and essentially unchanged over the past 10 months, core PPI is well below the Fed’s inflation target, and what is Washington doing about this?

Nothing!

The “solutions” being considered by Congress are utterly useless.

Keeping tax rates low (Americans are paying less taxes now than anytime since 1950) is the least effective form of stimulus.

Small business tax breaks will also have no impact.

The reason businesses aren’t getting loans is that they aren’t asking for them.

Why?

Because there’s no demand and therefore little incentive to borrow and expand.

Businesses aren’t hiring anywhere near the level that’s necessary to reduce unemployment.

Why?

Because there’s no demand and therefore little incentive to expand.

What to do?

Gorilla’s advice: “Use the remaining TARP money to hire 8 million Americans for at least 2 years, pay them each $40K/year, and voila: demand and recovery at last!!!”

Share

Greeks Daring Drifts

Thursday, September 16th, 2010

Whenever a finance minister says:

“Restructuring is not going to happen. There are much broader implications for the euro zone should Greece have to restructure its debt. If Greece restructures, why on earth would people invest in other peripheral economies? It would be a fundamental break to the unity of the euro zone.”

Gorilla says: “You can take default to the bank, preferably one not holding Greek bonds!”

Share

On To The Next Debacle

Thursday, September 16th, 2010

Yemen, training ground for the underwear bomber, is next up to receive Pentagonal largesse.

A big escalation in gifts of weaponry, accompanied as usual by no meaningful development assistance, always seems to be the answer in Washington.

It’s a lousy jobs program for the middle class, it entrenches backward, corrupt regimes, and it does absolutely nothing to stop what are at best a handful of fifth-rate medieval terrorists.

There’s no evidence that these threats are existential and no willingness to tell Americans the truth: we have nothing to fear from al-Qaeda.

Much better for our leaders to justify more wasteful defense spending by finding more “threats”.

Gorilla says: “How to repeat the same mistakes is the only thing we ever learn!”

Share

The Banker Homeowner

Thursday, September 16th, 2010

A record number of foreclosures in August, and no end in sight!

With mass unemployment, and no serious effort to address it by Washington, house prices will need to decline at least another 10-20% before a bottom is reached.

Fortunately, our leaders are no longer trying idiotic backdoor banking subsidy schemes like HAMP and buyer credits.

But they could be trying (for the third time) to allow bankruptcy judges to reduce the principal owed by those homeowners who are still able to make payments.

Bottom line: it will take at least a decade before home prices go up.

Gorilla says: “Extend and pretend is all that’s left until supply and demand reach equilibrium!”

Share

Contagion Goes Asian

Wednesday, September 15th, 2010

The Japanese are at it again, trying desperately to get the yen down and deflation tamed…

And this is one illustration of the biggest problem facing the world economy: everyone can’t lower their exchange rate and export their way to happiness.

So long as surplus countries like Germany and China play beggar thy neighbor, and suffer no consequences for it, the world is looking at a decade or more of stagnant growth and social upheaval.

Gorilla says: “Time to stop yawning and stop yuaning!”

Share

Night Of The Nutjobs

Wednesday, September 15th, 2010

Tea Party victory!!!

We’ll get answers in November to two questions:

1) Are angry, desperate Americans willing to vote into office a right-wing, racist lunatic fringe?

2) Is the Know Nothing Party finished for good?

Gorilla says: “Laugh with Democrats if it’s no and yes, cry for America if it’s yes and no!”

Share

The Fear Of Responsibility

Tuesday, September 14th, 2010

The Belgian Catholic Church is worried: if they apologize for their criminal priests and bishops, they might be held financially responsible!!!

Yes, it’s the same old failure to accept responsibility that plagues secular leaders.

The difference of course is that very few secular leaders molest children for decades, then attempt to cover it up.

The best solution would be to put these shameful and cowardly churches out of business for good, or at least for this amoral, misogynistic, homophobic Pope to defrock and excommunicate all the bishops and priests involved.

It would also be appropriate to end once and for all the subsidization of all religions by the taxpayer.

Gorilla says: “Suffer the little children is not a winning slogan!”

Share

The Rich Are All They Have

Tuesday, September 14th, 2010

The Know Nothing Party seems a bit confused about tax cuts.

The least effective form of stimulus, particularly when trowsered by the rich, but that’s all that is on offer from these boobs during the worst economic times in 70 years.

And the KNP wants them for the wealthy, or they won’t go along!!!

The good news in this preposterous viewpoint is that all the terrible tax cuts enacted by former President Bush may expire by the end of the year.

That will save taxpayers trillions of dollars, and might enable at last a serious jobs program.

Gorilla says: “We did pretty well in the 90s and the 60s with higher taxes!”

Share

Not Settling, No Less

Monday, September 13th, 2010

One of Prime Minister Netanyahu’s coalition partners will bring the Israeli government down if the settlement “freeze” is not stopped.

According to the Yesha Council: “Any continuation of the construction freeze would lead to severe political instability within Israel and the ultimate collapse of the current government”.

The Palestinians have already said they’re walking out of recently restarted talks if the settlement freeze is abandoned.

And this is why the “peace process” is so pointless: neither side is serious about peace.

Sooner or later, the Israelis will have to cut a deal, because the demographics are working against the long-term viability of a Jewish state.

The main obstacle for the Israelis will be dealing with the illegal settlements and the political fallout that comes from a wholly divided nation.

Sooner or later, the Palestinians will have to cut a deal, or descend into civil war.

The main obstacle for the Palestinians is agreeing to Israel’s right to exist and telling Palestinian refugees that they will never return to the homes they lost in 1948.

Gorilla says: “Sooner or later for these parties means sometime in the next 50 years, but before then peace is a total non-starter!”

Share