The Triumph of Newspeak in the EU: Spending is Austerity

The only voice which doesn't whine in the language of Newspeak appears to be Angela Merkel's in Germany. For the rest, the plain record of increased spending on the failed EU welfare state experiment gets called austerity.

Investors.com puts it best, here:

Austerity? Spending has boomed in the EU over the last decade. During the 2000s, EU member nations collectively boosted government outlays by 62%. Average government spending by EU nations today stands at about 49.2% of GDP — vs. 44.8% in 2000.

On its own website, the EU itself ridicules the notion of government austerity as a "myth."

"National budgets are NOT decreasing their spending, they are increasing it," the EU says, noting that in 2011, 23 of the 27 nations in the EU increased spending. This year, 24 of 27 will do so.

Did that decade-long spending increase boost GDP growth? No. During the 2000s, average annual GDP growth in the EU fell to 1.2% from 2.2% in the 1990s.

So the idea that Europeans are "tired" of austerity is false. You can't be tired of something you haven't tried. This is why an exasperated German Chancellor Angela Merkel said Monday she'll continue to demand that other countries make real cuts in spending.

Under Obama 5.4 Million New Americans Take SSDI, Doubling Total to 10.8 Million

For the full story by John Merline and all the data, go here at Investors.com.

Nothing is said about the cost of this exodus to dependency, which other stories have said is $200 billion annually, but Merline does mention that the funds designated for the purpose of disability benefits will run out in 2018, six years from now.

Obama Has Deliberately Obscured His Life-long Marxist Extremism

From Investor's Business Daily:

The videotape of Obama praising and hugging his America-bashing, Constitution-trashing law professor Derrick Bell isn't the only evidence that's been hidden from the public. A 1998 video of Obama praising the late Marxist agitator Saul "The Red" Alinsky alongside a panel of hard-core Chicago communists also exists. ...

[A] 2003 video of Obama speaking at a Chicago dinner held in honor of former PLO spokesman Rashid Khalidi. ... [T]he radical Khalidi — a close friend and neighbor of Obama, who held a 2000 political fundraiser in his home for him — has strongly defended the use of violence by Palestinians against Israel, while expressing clearly anti-American views. ...

[W]hy did Obama disguise the name of his radical Alinsky trainer Jerry Kellman in his memoir? And why did he also try to shield from readers the identity of his Alinsky mentor John McKnight, who wrote him a letter of recommendation to Harvard? ...

[W]hy did Obama leave out his weeks-long training at Alinsky's Industrial Areas Foundation in Los Angeles? This station of the cross for Alinsky acolytes is strangely missing from all 500 pages of his tediously detailed memoir. For that matter, the late Alinsky is not cited by name in either of the president's autobiographies, even though leftist activists confess this father of community organizing had a powerful influence on Obama.

Moreover, if communist Frank Marshall Davis wasn't a controversial factor in Obama's life, why did Obama also mask his identity in his first memoir? If listening, spellbound, at the feet of a known subversive isn't a red flag, why keep his real profile a secret?

Obama also couldn't find room in "Dreams From My Father" to mention the most striking thing about his father's politics. Obama Sr. was a pro-Soviet socialist, who as a government economist wrote a communist tract for Kenya in 1965. If this published paper wasn't a big deal, as Obama apologists have suggested, why is it conveniently missing from the 143-page section Obama devoted to boast about his father's career in Kenya? ...

[Obama] never mentioned Bell or the Harvard strike he led on his beloved professor's behalf in either autobiography. If he wasn't trying to fool people, why leave this seminal event out?

Even more radical — and influential — than Bell was Harvard law professor Robert Unger, who taught Obama a couple of courses, including one called "Reinventing Democracy." Like Bell, Unger called U.S. jurisprudence a sham system designed to protect the rich at the expense of the poor. But Unger also taught Obama how to dismantle it. He argued for seizing all private capital and redistributing it.

Obama kept up communications with Unger long after he graduated, but those contacts stopped in 2008. "I am a leftist, and by conviction as well as by temperament, a revolutionary," Unger explains. "Any association of mine with Barack Obama in the course of the campaign could do only harm."

Read the complete op-ed here.

Interest on Federal Debt Topped $454 Billion in Fiscal 2011

So says the US Department of the Treasury here.

With fiscal 2011 receipts running at $2.3 trillion according to Treasury here, interest payments now represent 20 percent of federal revenues. Since we're spending $1.5 trillion more than we presently took in, you could say that almost a third of this deficit spending is interest payments.

Total US government debt is running at approximately $15 trillion, so an interest payment of $450 billion per fiscal year implies an interest rate of about 3 percent.

Double that interest rate to 6 percent and interest payments balloon to $900 billion and 40 percent of current revenues.

Mark Steyn recently had some unhappy, pornographic thoughts about that, here:

R.I.P.

[W]ere interest rates to return to their 1990-2010 average (5.7%), debt service alone would consume about 40% of federal revenues by mid-decade. That's not paying down the debt, but just staying current on the interest payments.

And yet, when it comes to spending and stimulus and entitlements and agencies and regulations and bureaucrats, "more more more/how do you like it?" remains the way to bet. Will a Republican president make a difference to this grim trajectory? I would doubt it. Unless the public conversation shifts significantly, neither President Romney nor President Insert-Name-Of-This-Week's-UnRomney-Here will have a mandate for the measures necessary to save the republic.








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Quantitative Easing Was 'Cash for Spelunkers'

Jed Graham made the case last November here, and now notes that among other commodities, gold is $200 an ounce higher.

Absent more Fed purchasing of Treasuries, look for commodity price deterioration.

Main Street, Obamaville: All Bumps, No Road

From the inimitable Mark Steyn, here:

The American Dream, 2011: You pay four bucks a gallon to commute between your McJob and your underwater housing to prop up a spendaholic, grabafeelic, paramilitarized bureaucracy-without-end bankrupting your future at the rate of a fifth of a billion dollars every hour.

In a sane world, Americans would be outraged at the government waste that confronts them everywhere you turn: The abolition of the federal Education Department and the TSA is the very least they should be demanding.

Libertarian Swine on David Mamet

A nice Jewish boy realizes he's no longer a brain dead liberal and what do the libertarians find to complain about?

Readers on both sides of Mamet’s current political stance can take issue with his social conservatism. He is, among other things, an unbending proponent of traditional gender arrangements.

Political conservatism presupposes social conservatism, as Phyllis Schlafly pointedly argued here in the wake of the ObamaCare debacle, the most baneful affect of which was the neutering of the Hyde Amendment.

Libertarianism couldn't stand athwart a toy train and yell stop.  

Kish meir Yiddische Tuchus.

Obama Owns the Unemployment: 23 of 28 Months at 9 Percent or Higher

Seen here:

[T]he unemployment rate has been below 9 percent for just five months since Obama took office — and three of those months were in the first 12 weeks of his presidency, before his policies took effect.

Follow the history of unemployment graphically here.

TALK OF CAESARS . . . AND OTHER SUCH LIKE

In this editorial, "Will Washington's Failures Lead To Second American Revolution?" by Mr. Christian and Mr. Robbins, the first sentence alone deserves reproduction for its grasp of the present day political reality on the ground, which is that the revolution is of Obama's making, and the reaction it has caused seeks to prevent it:

The Internet is a large-scale version of the "Committees of Correspondence" that led to the first American Revolution — and with Washington's failings now so obvious and awful, it may lead to another.

People are asking, "Is the government doing us more harm than good? Should we change what it does and the way it does it?"

Pruning the power of government begins with the imperial presidency.

Too many overreaching laws give the president too much discretion to make too many open-ended rules controlling too many aspects of our lives. There's no end to the harm an out-of-control president can do.

The rest tells you how. Don't miss it, here.

President Mussolini Anyone?

Investors.com calls the prospect of the Dodd bill becoming law nothing short of fascism:

As it stands, Dodd's bill amounts to a nationalization of our financial sector. It creates permanent bailouts in the U.S. for any company that regulators consider to be in danger of default. That includes any company "substantially engaged in activities ... that are financial in nature."

In other words, virtually any big company, since many industrial giants — GM and GE leap to mind — have their own finance units.

This would give sweeping discretionary control over the economy to the Federal Reserve, the Federal Deposit Insurance Corp. and the Treasury — the very regulators who, asleep at the switch in 2005 and 2006, let the U.S. economic locomotive run off the rails.

If the Dodd bill passes intact, regulators can essentially shut down any company at will and force it into receivership. This style of state-directed capitalism has been tried before — in Italy under Mussolini and, later, in Argentina under Peron. It didn't work then, it won't work now.

Read the rest, here.

Bailouts Remain The Problem, Not The Solution

Nicole Gelinas for Investors.com explains why the Dodd bill is a very unfunny joke:

The idea that the financial industry can pre-fund its next arbitrary bailout with $50 billion is a pleasant fiction. How much would an "orderly liquidation fund" have needed to stem investor panic starting in 2008? Try $20 trillion.

You can read the rest here.

Limited Government Presupposes Social Conservatism

Phyllis Schlafly for Investors.com explains how limited government can't exist without social conservatism:

If limited-government conservatives are dreaming of taking back America for fiscal sanity in the November elections, they should study how the unprecedented decline in marriage and the increase in illegitimacy are the major causes of our bloated government and gigantic welfare spending.

In 2008, 40.6% of children born in the U.S. were born outside of marriage; that's 1,720,000 children. This is not, as the media try to tell us, a teenage problem. Only 7% of those illegitimate babies were born to girls under age 18, and over three-fourths were born to women over 20. The problem is the collapse of marriage as the social institution responsible for the costs of child care.

The fiscal conservative faction of the Republican Party should also study why Republicans won their big congressional majority in 1994 and what has happened since. The Democratic Party's welfare boondoggle was a major reason for the GOP victory.

Go here to read the full argument.

"Obamalateral Disarmament"

Investors.com weighs in with an opinion piece here on Obama's dangerous weakening of America's nuclear deterrent, saying:

There used to be a policy called mutual assured destruction, or MAD, by which war among the superpowers would be deterred by the ability of each to survive and still devastate each other.

This new policy is just plain mad, without the deterrence, making conflict likelier.

The Energy Balance of Power is Shifting

From Investor's Business Daily:

If estimates hold up, energy experts say the shale gas that underlies large parts of the United States will be able [to] meet our country's needs for the next 100 years. The Department of Energy expects shale gas to account for 50% of natural gas production by 2020 if not sooner.

What's more, the same drilling techniques for shale gas are now being used in several European countries, including France and Poland, to extract their own supplies. Both China and India have huge shale-gas resources. Geologists say shale gas is so plentiful in some parts of the world that it could meet global needs for several centuries.

Read more here.

The Bank Bailouts Are a Fact, But They Are Still Wrong

From Jeffrey A. Miron at Investors.com:

The U.S. made a huge mistake in bailing out the financial industry. Bankruptcy would have been the right way to punish the financial sector for its excesses. High profits and large bonuses are perfectly fine — they are the reward for risk-taking — but only if those reaping the rewards in good times actually pay the piper in bad times.

Absent the bailout, many financial institutions would have failed or suffered serious losses, driving down profits and bonuses. This is the way capitalism is supposed to work.

The bailout short-circuited this process, protecting the financial sector from much of the risk it assumed in the pursuit of high profits. Advocates believe the bailout was necessary to prevent a financial meltdown, but even if they are right — which is highly debatable — the bailout let Wall Street off the hook. And by rewarding excessive risk-taking, the bailout planted the seeds of the next crisis.

For the rest, go here.