China’s economy to collapse???

A good news article at politico.

Is China headed toward collapse?

Chang argues that inconsistencies in Chinese official statistics — like the surging numbers for car sales but flat statistics for gasoline consumption — indicate that the Chinese are simply cooking their books. He speculates that Chinese state-run companies are buying fleets of cars and simply storing them in giant parking lots in order to generate apparent growth.

The world economy is on the brink due to debt of governments, they loan each other fake paper money and then pretend everything is OK.

Maybe Obama Finally gets it

Obama Says U.S. Long-Term Debt Load ‘Unsustainable’

May 14 (Bloomberg) — President Barack Obama, calling current deficit spending “unsustainable,” warned of skyrocketing interest rates for consumers if the U.S. continues to finance government by borrowing from other countries.

“We can’t keep on just borrowing from China,” Obama said at a town-hall meeting in Rio Rancho, New Mexico, outside Albuquerque. “We have to pay interest on that debt, and that means we are mortgaging our children’s future with more and more debt.”

Holders of U.S. debt will eventually “get tired” of buying it, causing interest rates on everything from auto loans to home mortgages to increase, Obama said. “It will have a dampening effect on our economy.”
…………….

Us conservatives have been railing against government spending for many, many years and have been saying it is not long term sustainable and will cause huge inflation and high interest rates.

We will see if he actually does cut government costs significantly (25-50%) or is another lip service politician which says one thing and does another, like add a few trillion more in government spending for universal health insurance for the 3 or 4 million American citizens which do not have insurance for the long term.

Adding the 12 to 15 million uninsured illegal immigrants will bankrupt any government system. The other 12 to 15 million which are already eligible for government insurance (SCHIP or MEDICAID) and do not use those programs. That is 25 to 30 million of the 45 million the Single Payer Health insurance people talk about, then there are 10 million transient people (between insurance coverage) and 5 to 10 million who do not choose to buy health insurance.

Effects of Stimulus Plan

1) As part of California’s attempt to balance its budget earlier this year there was an agreement to reduce some union labor rates that work for the government. Now the federal government (Obama administration) is telling California that unless it recedes the wage cuts, California will loose $6.8 Billion dollars in federal stimulus plan money.
California Officials Question Union’s Role in Federal Stimulus Ruling
Lawmaker angry over federal stimulus money decision

2) Spending the U.S. stimulus: states can’t afford it

WASHINGTON (Reuters) – One of the greatest challenges U.S. states face in spending federal stimulus money is funding the burst in bureaucracy that accompanies the funds, a government watchdog said on Thursday, as the Obama administration pledged to give states more help.

Revenue has been dropping in most U.S. states for a year, and many governments have cut staff. But the $787 billion American Recovery and Reinvestment Act flooded states with money for programs and required them to keep the public and federal government apprised of their spending, all of which requires more workers, said the Government Accountability Office.

“Due to fiscal constraints, many states reported significant declines in the number of oversight staff — limiting their ability to ensure proper implementation and management of Recovery Act funds,” the GAO’s nearly 300-page report on the stimulus plan said.
…………

3) STIMULUS WATCH: Jobs, but not where needed most

WASHINGTON – The billions in transportation stimulus dollars that President Barack Obama promoted as a way to create jobs shortchange counties that need the work the most, an Associated Press analysis has found.

The AP’s review of more than 5,500 planned transportation projects nationwide is the most complete picture available of where states plan to spend the first wave of highway money. It reveals that states are planning to spend 50 percent more per person in areas with the lowest unemployment than in communities with the highest. The Transportation Department said it will attempt to replicate the AP’s analysis as it continues pressing states to dole out money fairly.
……

Results of the stimulus plan, direct political payback to unions that supported the Obama campaign, creating jobs where there is low unemployment and states can’t spend the money due to lack of resources.

As usual, the government is trying to help and puts resources in the wrong spots and the controls decisions which have nothing to do with the original area of concern.

Yup, just the new business as usual from the hopeychange administration.

Economy is OK if the news is NOT AS BAD AS EXPECTED

Recent news which is said to be good since it is not as bad as predicted.

Fed’s Bank Results ‘Reassuring,’ Show No Insolvency

…….
Federal Reserve stress tests on the 19 biggest lenders show Bank of America Corp., Wells Fargo & Co. and Citigroup Inc. together require about $54 billion, said people familiar with the conclusions.
…….
White House spokesman Robert Gibbs yesterday suggested that the Obama
administration may seek management changes at some banks. Officials will want to “ensure that going forward they felt that the management was in place to remedy the situation and ensure long-term viability without continued government assistance,” he said.

Bank of America Chief Executive Officer Kenneth D. Lewis, 62, was ousted as chairman on April 29 ……….

Jobs Report Giving Investors Mixed Picture On US Economy

The pace of layoffs slowed in April when employers cut 539,000 jobs, the fewest in six months. But the unemployment rate climbed to 8.9 percent,………………..

Job losses in February and March turned out to be deeper, according to revised figures. Employers cut 681,000 positions in February, 30,000 more than previously reported.
They cut 699,000 jobs in March, more than the 663,000 first reported. The deepest job cuts of the recession —741,000 came in January.

Jobs: A little less bleak

……………
Wachovia senior economist Mark Vitner and Gilliam both say they’re worried about the impact on jobs in coming reports from the bankruptcy at Chrysler, which will result in a 30-to-60 day shutdown at all of its plants, and the possible bankruptcy at General Motors (GM, Fortune 500). The loss of jobs — not just at those companies but at their dealers and suppliers — will be substantial.

And Vitner said that while Wachovia is projecting that there will be economic growth by the fourth quarter of this year, it’s projecting that unemployment will continue to rise into 2010, topping out at 10.8% in April of that year.

“We are moving in the right direction, but the recession is not over, and even when it’s over that’s not an end of the tough times,” said Vitner.

Wow a bank stress test with an 8.4% unemployment shows the banks will be OK, current unemployment is 8.9% and expected to exceed 10% in the next year.

I wonder if a new stress test will be needed so that the federal government can take over the banks.

GM & Chrysler Bankruptcy

G.M., Leaking Cash, Faces Bigger Chance of Bankruptcy

Even after receiving $15.4 billion in federal loans, General Motors is once again on the brink of financial collapse.

The automaker’s first-quarter earnings released Thursday showed that G.M. was losing more money and sales than it was in late December, when the government began its bailout…………..

This is occurring as Chrysler is in Bankruptcy

Chrysler Files to Seek Bankruptcy Protection

President Obama forced Chrysler into federal bankruptcy protection on Thursday so it could pursue a lifesaving alliance with the Italian automaker Fiat, in yet another extraordinary intervention into private industry by the federal government.
Flanked by his automobile task force of cabinet secretaries and business advisers in the White House’s grand entranceway, Mr. Obama announced a plan that would allow the United Automobile Workers, through their retirement plan, to take control of Chrysler, with Fiat and the United States as junior partners. The government would lend about $8 billion more to the company, on top of the $4 billion it had already provided……

If this is the good things that comes out of companies being to big to fail and then being supported by a federal government which is to big to fail.

This just proves that the US federal government is to bg and needs to be dismantled and let the states try to run things since the feds have screwed things up so badly.

GM will move jobs out of US using Taxpayer Money

This is our wonderfully brilliant central government planning that was started by Bush and is being completed by Obama.

Under Restructuring, GM To Build More Cars Overseas

The U.S. government is pouring billions into General Motors in hopes of reviving the domestic economy, but when the automaker completes its restructuring plan, many of the company’s new jobs will be filled by workers overseas.

According to an outline the company has been sharing privately with Washington legislators, the number of cars that GM sells in the United States and builds in Mexico, China and South Korea will roughly double.

The proportion of GM cars sold domestically and manufactured in those low-wage countries will rise from 15 percent to 23 percent over the next five years, according to the figures contained in a 12-page presentation offered to lawmakers in response to their questions about overseas production.
…….

Everyone needs to call their congressman (woman) and tell them thanks for letting the executive branch of the federal government spend out tax dollars to send jobs out of this country.

Just the normal expected result of the government helping out.

1st 100 Days & the future failure of America

I thought after the 1st 50 days that things could only get better, lots of new people making new people mistakes, these people really have pride in America just not reacting to well to the new power and environment.

It has just gotten worse except for the distraction game, the Obama administration has gotten very, very good at distraction while the real agenda of the government take over of a majority of American business marches forward.

Some of the highlights/lowlights
1) The American Apology tour through Europe. I thought only look at how important I am, self-indulgent Hollywood types (Penn, Glover, Bellafonte) and ex-presidents (Carter) went around the world saying America is evil. Now the sitting president is apologizing to the world because American Capitalism over the last century and a half has brought an improved standard of living to a large segment of the world population.

2) Cut 100 million dollars from federal budget, same as a family making $45000 a year taking a $1.22 annual pay cut. I wonder what will be cut in the family budget to make up for the income loss, need to drink water instead of the bottle of soda at today’s lunch. savings achieved, no more cutting needed.

3) Media lapdog to the president – ignores hundreds of thousands of protesters who think that government is overstepping its bounds and government intervention into private society needs to be curtailed.

4) Continue to ignore friends and prop up enemies. (Iran, Cuba, Venezuela, North Korea) And listen to them speak while they rant about how evil America is.

5) Politicize the security of America by releasing CIA memos

All of these are a distraction as they push through a universal health insurance and energy cap and trade plan.

Universal health care will result in limiting access, it is the only way to decrease costs is to limit access. See Charles Krauthammer collumn. The government has convinced a majority of the people that the America Health Care industry is broken and can only be “fixed” by the federal government.

The federal government is going to do the same thing with the energy industry under Cap & Trade. Cap & Trade will result in significant 300 to 400% increases in energy prices which will raise the prices for each American household about $3900 dollars more a year. This will result in American’s becoming enraged against energy companies and utilities giving the government the support to price cap and nationalize the energy industry. This will result in less energy for everyone to use.

It is called hidden taxes on business which gives those in power the ability to create a crisis and then solve the crisis by taking more power.

America is on a road to rapid failure and lower standards of living for the good of everyone.

POWER CORRUPTS, ABSOLUTE POWER CORRUPT ABSOLUTELY!!!!!!!!!!

HAPPY EARTH DAY!

HAPPY EARTH DAY!

Another entertaining column by Mark Steyn.

April 22nd – Lenin’s birthday – is also Earth Day, a day to ponder what we hard-hearted right-wingers regard as the ultimate Milf. It was, oddly enough, thinking about eco-alarmism that got me started on the road to America Alone. This National Post column is from 2002:

In 1968, in his best-selling book The Population Bomb, scientist Paul Ehrlich declared: “In the 1970s the world will undergo famines – hundreds of millions of people are going to starve to death.”

In 1972, in their influential landmark study The Limits to Growth, the Club of Rome announced that the world would run out of gold by 1981, of mercury by 1985, tin by 1987, zinc by 1990, petroleum by 1992, and copper, lead, and gas by 1993.

In 1977, Jimmy Carter, President of the United States incredible as it may seem, confidently predicted that “we could use up all of the proven reserves of oil in the entire world by the end of the next decade.”

Now, in 2002, with enough oil for a century and a half, the planet awash in cut-price minerals, and less global famine, starvation and malnutrition than ever before, the end of the world has had to be rescheduled. The latest estimated time of arrival for the apocalypse is 2032. Last week, the United Nations Global Environmental Outlook predicted “the destruction of 70% of the natural world in 30 years, mass extinction of species, and the collapse of human society in many countries … More than half the world will be afflicted by water shortages, with 95% of people in the Middle East with severe problems … 25% of all species of mammals and 10% of birds will be extinct …” Etc., etc., for 450 pages. But let’s cut to the chase: As The Guardian’s headline writer put it, “Unless We Change Our Ways, The World Faces Disaster.”

Ah, yes. The end of the world’s nighness is endlessly deferred but the blame rests where it always has. With us – with what the UN calls “the current ‘markets first’ approach.” Klaus Toepfer, the UN Environment Program executive director, believes that “under the ‘markets first’ scenario the environment and humans did not fare well.”
………..
I’d like to be an “environmentalist,” really I would. I spend quite a bit of my time in the environment and I’m rather fond of it. But these days “environmentalism” is mostly unrelated to the environment: It’s a cult, and, like most cults, heavy on ostentatious displays of self-denial, perfectly encapsulated by the time-consuming rituals of “recycling,” an activity of no discernible benefit other than as a communal profession of faith.
……..

The higher a countries GDP, the healthier the population and the longer people live. This is a fact which can’t be denied by any open minded un-biased reasonable person. There deniers that free-markets improve peoples lives are dooming the Human race to a much worse way of life than necessary. It is a shame that some people only feel good when destroying others.

I have a previous entry about this Global Warming – Science Consensus Fraud?

It is an easy comparison, from Wikipedia
World GDP

Life expectancy

SUBPRIME DEMOGRAPHY

I found this column by Mark Styen very entertaining.

SUBPRIME DEMOGRAPHY

……….
Take a “toxic asset”. What would improve its current pitiful value? That’s easy: More demand. Less supply. An asset is only an asset as long as there’s a buyer willing to buy it. If you’ve got 50 houses and 100 would-be homeowners, that’s good for property prices. If you’ve got 100 houses and 50 would-be homeowners, that’s not so good.

Which is the situation much of the developed world is facing. A bank is a kind of demographic shorthand, by which old people with capital lend to young people with ambition and ideas. Unfortunately, the western world is running out of young people. Japan, Germany and Russia are already in net population decline. Fifty per cent of Japanese women born in the Seventies are childless. Between 1990 and 2000, the percentage of Spanish women childless at the age of 30 almost doubled, from just over 30 per cent to just shy of 60 per cent. In Sweden, Finland, Austria, Switzerland, the Netherlands and the United Kingdom, 20 per cent of 40-year old women are childless. In Germany, 30 per cent of all women are childless. In a recent poll, invited to state the “ideal” number of children, 16.6 per cent of Germans answered “None.”
……………
Whenever I write about demography, I usually get a ton of responses from folks saying: What’s so bad about falling population? Japan, Belgium and the like are pretty congested: Wouldn’t it be nice to have a bit more elbow room? Sure. With the rise of mill towns in the south and the opening up of the west, the population of my small municipality in New Hampshire peaked in the 1820 census, declined till 1940 and still hasn’t caught up to where it was 200 years ago. But it didn’t matter. Because we were a self-contained rural economy with no welfare and no public debt. If Japan and Germany were run like 19th century Granite State townships, they’d be okayish. But they’re not, so they won’t be. You can’t hunker down behind national borders when there aren’t enough young people inside the perimeter with a sufficient level of consumption to grow the economy at the rate necessary to cover existing government obligations.

This is the first crisis of globalization, and it is a far more existential threat than the Depression. In living beyond its means, its times, and its borders, the developed world has run out of places to pass the buck.

Common Sense, growing populations = more economic activity = prosperity.

Why Bank’s should Not have taken Gov’t Money

US to put conditions on Tarp repayment

Strong banks will be allowed to repay bail-out funds they received from the US government but only if such a move passes a test to determine whether it is in the national economic interest, a senior administration official has told the Financial Times.
…………
The official said former Treasury Secretary Hank Paulson was right to treat all the banks the same way in late 2008 at the peak of the crisis but it was now necessary to differentiate more between institutions.
…………

I hope the banks will learn from this, never trust government, they took the government’s money when some did not want it, now that they want to give it back since they never really did much with it to begin with, the government will not take it back until certain tests are passed.

All Businesses, if you want to be independent, do not take government “loans”. The strings will never be gone and if they want the government will take over your business from you. ( New GM CEO ring a bell.)

Now since the public has gotten more vocal about stopping the insane spending, Congress wants to back out. The government solution is not to let the banks figure it out for themselves. The government will just buy the banks by taking over the bank’s stocks and destroy an individuals common stock value.

U.S. may convert banks’ bailouts to equity share

President Obama’s top economic advisers have determined that they can shore up the nation’s banking system without having to ask Congress for more money any time soon, according to administration officials.

In a significant shift, White House and Treasury Department officials now say they can stretch what is left of the $700 billion financial bailout fund further than they had expected a few months ago, simply by converting the government’s existing loans to the nation’s 19 biggest banks into common stock.

Remember, the government will change the rules whenever it wants to keep control.

Stopping this type of government behavior is the real root of the tea parties last weak. The government needs to get out of the way and stop trying to prevent some failures and preventing all from succeeding.