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A crisis of globalization |
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Written by Editor
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Friday, 21 May 2010 16:47 |
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There is a moment when every major economic crisis becomes a political crisis. In other words, politicians efforts to solve the problem brush up against the public will. In the 1920s, Winston Churchill yanked Britain back onto the gold standard, at the cost of a period of deflation and depression that the country has never seen since. The result was to bring Britain closer to the brink of anarchy than it has ever been in the modern era. Keynes went so far as writing a paper called “The Economic Consequences of Mr Churchill” and the man himself later admitted that this had been his biggest mistake. In the end, though, it was public disapproval which brought the flirtation with the gold standard to an end: the short-lived Naval mutiny at Invergordon in 1931 ultimately triggered Britain’s exit.
My column this week considers the political issues behind the current European crisis, and my ultimate point is that this its denouement will not just be about economics, but about the direction the world economy takes in the coming years. My suspicion is that it triggers a long retrenchment from globalisation. Anyway, the op-ed starts as follows:
It is now accepted, even by Angela Merkel, that as Europe battles its financial crisis, the very fate of the euro is at stake. Her belated discovery of this home truth is welcome, but she does not go far enough. The real concern is that the crisis bubbling on the other side of the Channel represents a make-or-break moment for globalisation.
See complete article at London Telegraph.
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Last Updated on Friday, 21 May 2010 16:49 |
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Obama touts national sales tax (VAT tax), again |
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Written by Editor
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Thursday, 22 April 2010 21:49 |
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A value-added tax (VAT) is a "novel" idea for the U.S., President Barack Obama said Wednesday.
The president neither ruled in nor ruled out implementing a VAT on goods and services, saying that he is waiting to see what recommendations the committee he's set up on deficit reduction will generate.
"You know, I know that there's been a lot of talk around town lately about the value-added tax -- that is something that has worked for some countries," Obama said in an interview with CNBC. "It's something that would be novel -- for the United States."
See complete article at The Hill.
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Senator: GM Uses "TARP money shuffle" to repay loans |
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Written by John D. McKinnon
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Thursday, 22 April 2010 20:42 |
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A top Republican says General Motors’ announcement this week that it will repay its federal loans early is “nothing more than an elaborate TARP money shuffle.”
In a letter to Treasury Secretary Tim Geithner, Sen. Charles Grassley of Iowa fumes that the source of the funds for the $4.7 billion repayment is not GM earnings, but rather a Treasury escrow account. He chides the company and the administration for suggesting in recent statements that the money is coming from GM earnings.
Grassley writes that GM’s early repayment of the federal loan is aimed at diverting attention from another uncomfortable issue – the big break the car company would get on a proposed tax to recoup TARP losses. GM is expected to generate some of the biggest losses in the TARP program, but it won’t have to pay any money under the so-called TARP tax the Obama administration wants to impose on large financial institutions.
See complete article at Wall Street Journal
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The politics of red herrings |
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Written by Editor
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Wednesday, 21 April 2010 20:18 |
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Barack Obama and his sycophantic Democrat Party are attempting to play the American people like a musical instrument. Only problem is that, as a band, Obama and the Democrats are tone-deaf, as is proven by this week’s Pew Research poll that shows eight out of ten Americans do not trust the government.
I’m frankly surprised that the number of people who view their government with suspicion is this low, but then it’s likely that the 20% of Americans who do trust the government are dependent on government largesse and do not mind trading their liberty for the few crusts of bread the government gives them.
See complete column at Canada Free Press.
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President Obama bows to Chinese President |
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Written by Editor
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Tuesday, 13 April 2010 11:06 |
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 The President of the United States has bowed once again to a foreign leader -- this time to the Premier of communist China. Apparently the groveling, waist-level bow to the Saudi king last year wasn't a dramatic enough message to the world as to who this President serves, so he has now reinforced the message with a shameful bow to the communist leader.
The Saudi bow might be explained by the allegations that the Saudi royal family subsidized Barry Sotero's (Barack Hussein Obama's) college education and early career. Perhaps the bow to the Chinese leader can be explained by the fact that the United States of America has been placed in a subservient position to communist China by the unrelenting spending and borrowing by the Federal Government. Rumors abounded in 2009 that Secretary of State Hillary Rodham Clinton had pledged U.S. infrastructure (public roads, bridges, etc.) to China as security for their loans to the United States during Clinton's meeting with Chinese leaders.
In any event, this President's continued ability to spend without restraint depends upon the favor of China's leaders, who are bankrolling the U.S. spending spree.
The most recent bow took place as the leaders met at the summit for Nuclear Security.
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Last Updated on Tuesday, 13 April 2010 11:31 |
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