Obama's Trans-Pacific Partnership Trade Pact Favors Multinationals Over Sovereigns

If I didn't know better, I'd say fascism for Obama is merely a now worn out model for a grander scheme of global governance by elites who exercise that rule as staff of multinational corporations and think of themselves as citizens of the world.

From HuffPo, here:

[A] newly leaked document is one of the most controversial of the Trans-Pacific Partnership trade pact. It addresses a broad sweep of regulations governing international investment and reveals the Obama administration's advocacy for policies that environmental activists, financial reform advocates and labor unions have long rejected for eroding key protections currently in domestic laws. ...

[F]oreign corporations operating within the U.S. would be permitted to appeal key American legal or regulatory rulings to an international tribunal. That international tribunal would be granted the power to overrule American law and impose trade sanctions on the United States for failing to abide by its rulings. ...

Two United Nations groups recently urged global governments not to agree to trade terms currently being advocated by the Obama administration, on the grounds that such rules would hurt public health.

Such foreign investment standards have also come under fire at home, from both conservative sovereignty purists and progressive activists for the potential to hamper domestic priorities implemented by democratically elected leaders. The North American Free Trade Agreement, passed by Congress in 1993, and a host of subsequent trade pacts granted corporations new powers that had previously been reserved for sovereign nations and that have allowed companies to sue nations directly over issues.

While the current trade deal could pose a challenge to American sovereignty, large corporations headquartered in the U.S. could potentially benefit from it by using the same terms to oppose the laws of foreign governments. If one of the eight Pacific nations involved in the talks passes a new rule to which an American firm objects, that U.S. company could take the country to court directly in international tribunals.

Public Citizen challenged the independence of these international tribunals, noting that "The tribunals would be staffed by private sector lawyers that rotate between acting as 'judges' and as advocates for the investors suing the governments," according to the text of the agreement.

Yves Smith of Naked Capitalism here is so beside herself she's wondering if Obama can be impeached over this.

Retail Collapses in The Netherlands, Unsold Housing Inventory Nearing Spanish Levels

So says Ambrose Evans-Pritchard, here:

Dutch retail sales collapsed by 11pc in April, even worse than the 9.7pc drop in Spain. (Royal holidays cannot explain this). ...

This is not contagion from Greece or any such nonsense. It is the result of the eurozone's destructive policy mix. ...

The consequence of Holland’s accelerating downward slide may well be an anti-euro coalition in The Hague this Autumn.

I reported from Amsterdam in April that the Dutch property market is tipping into deeper slump, with the inventory of unsold homes nearing Spanish levels . . .: Rabobank said home prices have fallen 11pc from their peak in August 2008, or 15pc in real terms, leaving up to 500,000 people in negative equity. The stock of unsold properties has doubled to 221,000 since 2008, almost double the declared level in the US on a per-capita basis.

"It Is The Government, Not The Citizen, Who Spent Too Much"

So says Geert Wilders of The Netherlands, quoted here:

The Dutch prime minister said his country faced a crisis and asked parliament to push through budget cuts after his government lost the support of its main political ally and tendered its resignation.

"Standing still is not good for the Netherlands. The problems are serious, the economy is stalling, employment is under pressure and government debt is growing faster than the Netherlands can afford," Prime Minister Mark Rutte told parliament on Tuesday, according to Reuters.

"Those are the facts and nobody can run away from them. I'm standing here without pretences, it is up to parliament and the voters."

Geert Wilders' Freedom Party had backed the government for the past 18 months but said he was no longer willing to be dictated to by Europe.

"It is the government, not the citizen, not Henk and Ingrid, who spent too much. Either we choose to act in the interests of Henk and Ingrid or we act in the interests of Brussels," Wilders said.

The ECB Is The Central Bank Of Europe In Name Only

So Peter Morici, here:

“The real problem is the European Central Bank doesn’t have the tools it needs to guarantee the solvency of these (European) banks,” Peter Morici, Professor at University of Maryland’s Robert H. Smith School of Business, told CNBC Asia's "Squawk Box".

“The Federal Reserve put two trillion dollars into banks. The European Central Bank has to, in a crisis, be empowered to do that by some sort of emergency consensus and take up the role of the Federal Reserve’s place in the United States. It simply does not have these powers right now,” Morici said.

Does The Fed Have The Guts To Let The Market Prove Itself, Now That Operation Twist Is Ending??

I doubt it. Capitalism died here long ago. But we'll see.

Meanwhile Zero Hedge had this chart in May showing the coincidence of stock market rises with the onset of the various tranches of quantitative easing efforts by the US Federal Reserve.

Story here.

Chicago Mob Violence: If The Problem Were Truly Controlled Last Year, Why Do You Have To Get Control Again This Year?

The reporting on uncontrolled black mob violence in Chicago is as absurd as the excuses for it:

Police Supt. Garry McCarthy pointed out earlier this week that there were similar mob attacks last summer, and his department was able to get the problem under control. He said he believes they’ll be able to do it again this year, and it’s a matter of making sure his officers are where they’re supposed to be, to prevent these incidents from happening.

One thing is clear: Rudy Giuliani Rahm Emanuel is not.

Rumors of Grexit Leading to Spanic Might Prompt Quitaly and Finally Fixit

The Euro humor, coming from Matthew Lynn, here, is deadly serious:

“A fresh panic in Spain might be followed by rising demands for Italy to quit if it doesn’t get the same terms its Mediterranean neighbor has been offered, followed by a Finnish departure from the single currency that might finally bring the whole saga to a climax,” he said.

A game of dominoes, started by Greece.

Weez All Bruthas In That Great Fraternity The Mystic Knights Of The Sea

Global Fascism: Casually Described, Matter of Factly Accepted

Today's must-reading comes from The Wall Street Journal, where a libertarian correctly describes the current state of affairs as a global fascist order, but uncritically accepts it as a fact which explains things rather than as a disease to be cured:

The Greek tragedy began with a fiscal crisis—brought on by the government spending more money than it took in—that became a banking crisis. In Spain, there is a fiscal crisis that exacerbates a banking crisis.

Fiscal and banking crises are often linked because in modern economics the state and banking are joined together. Banks purchase government debt, supporting the state, and governments guarantee the liabilities of banks. When one party is weakened, so is the other. ...

The banks, not fiscal deficits, will be the undoing of the euro.

The author believes federal union as in the US should have come first in Europe before the common currency, in order to equalize structural differences in labor markets among other things, for example taxes and spending.

Yes, it should have, the more securely to anchor the foundations of fascism. Somehow ancient memories kept that from happening in Europe, and Spaniards and Greeks still think of themselves as such and not as Europeans who answer to Brussels and the European Central Bank.

But unlike Europe federal union in the US has allowed the partnership between government and banks to run the show unfettered, the more ominously so since 1913 with The Federal Reserve Act, a measure which concentrated power in the hands of the few and took it away from the many.  The bankers were put first in line for Federal Reserve Notes. Citizens last. Like sheep they turned in their gold.

Augmented by the growth of the imperial presidency which got its impetus first under Wilson and then under FDR, the Congress claimed its role in the new cabal in the 1920s by stopping the natural and constitutionally prescribed growth of representation, enhancing nothing but its own importance. Trading on insider information, election to the US House or Senate has become a path to wealth and power, if not fame.

These all act in concert to protect their gig, not yours, not America's.

In its fecklessness and greed, however, the government by turns has lost control of the money creation process, most notably since 1971, and has ceded it to the banking interest and cannot get it back. Our national debt may now surpass our $15 trillion GDP and gold may be $1,600 the ounce, but it takes a banker to really screw things up and create an over the counter market in derivatives with a notional value in excess of $600 trillion. 

The banks won't be the undoing only of the Euro.     

Read the entire column here.

John Hussman Describes The Recent Victory Of Global Fascism, Without Using The Term

Just yesterday, in his column, here:

[O]ver the past 15 years, the global financial system . . . has been transformed into a self-serving, grotesque casino that misallocates scarce savings, begs for and encourages speculative bubbles, refuses to restructure bad debt, and demands that the most reckless stewards of capital should be rewarded through bailouts that transfer bad debt from private balance sheets to the public balance sheet.

What is central here is that the government policy environment has encouraged this result. This environment includes financial sector deregulation that was coupled with a government backstop, repeated monetary distortions, refusal to restructure bad debt, and a preference for policy cowardice that included bailouts and opaque accounting. Deregulation and lower taxes will not fix this problem, nor will larger "stimulus packages."  

New Federal Reserve Capital Requirements May Doom Savings and Loans

And putting savings and loans out of business will dramatically reduce competition in the mortgage business, which is negative for housing, and borrowers, going forward.

Moral hazard. Picking winners and losers. Fascism, American-style.

Story here.

FDIC's New Liquidation Authority Under Dodd-Frank Latest Example Of Obama Fascism

It's not fascism when we do it.

Peter Wallison for Bloomberg.com doesn't come right out and say it, of course, but the FDIC's new liquidation authority under Dodd-Frank is the very embodiment of Obama's fascist vision for America and a crucial instrument for its implementation:

Under the plan, the agency would create a bridge institution to assume the assets and liabilities of a failed firm and could force some creditors to take equity in place of their debt holdings. ...

The powers granted by the liquidation authority to the secretary of the Treasury are unprecedented. With the concurrence of the Federal Reserve and the FDIC, the secretary can seize any financial firm -- not just the largest ones -- if he believes its failure would cause instability in the U.S. financial system.

If the firm’s directors object to the seizure, the secretary can apply to a U.S. district court for an order authorizing him to appoint the FDIC as receiver. The court has one day -- yes, one day -- to decide whether the secretary’s judgment was correct. If the court takes no action within this window, the firm is turned over to the FDIC. It’s a felony to disclose that the secretary has applied for the court order. The constitutional issues here are obvious and breathtaking. ...

Essentially, there’s no appeal. The secretary’s seizure isn’t subject to a stay or injunction, and once the firm has been delivered into the arms of the FDIC, it’s as good as dead.

Read the entire column, here.

Thomas Sowell Agrees With Us: Obama Is A Fascist

Thomas Sowell for Investors.com correctly locates Obama's socialism in the fascist vein:

What President Obama has been pushing for, and moving toward, is more insidious: government control of the economy, while leaving ownership in private hands. That way, politicians get to call the shots but, when their bright ideas lead to disaster, they can always blame those who own businesses in the private sector. ...

One of the reasons why both pro-Obama and anti-Obama observers may be reluctant to see him as fascist is that both tend to accept the prevailing notion that fascism is on the political right, while it is obvious that Obama is on the political left. ...

What socialism, fascism and other ideologies of the left have in common is an assumption that some very wise people — like themselves — need to take decisions out of the hands of lesser people, like the rest of us, and impose those decisions by government fiat.

Read the complete column, here.

Liberal Massachusetts Town Institutes Fines For Public Swearing

The move actually de-criminalizes public swearing in order to remove it from the penumbra of First Amendment applications, as reported here:

Middleborough, a town of about 20,000 residents perhaps best known for its rich cranberry bogs, has had a bylaw against public profanity since 1968. But because that bylaw essentially makes cursing a crime, it has rarely if ever been enforced, officials said, because it simply would not merit the time and expense to pursue a case through the courts.

The ordinance would decriminalize public profanity, allowing police to write tickets as they would for a traffic violation. It would also decriminalize certain types of disorderly conduct, public drinking and marijuana use, and dumping snow on a roadway.

Just another expression of the reactionary impulse and not really a bona fide idea, an irritable mental gesture which only resembles an idea, right?

Americans' Net Worth Drops 40%, 55% For Those Whose Home Is Their Primary Savings

So says the Federal Reserve in a just released report here:

[T]he decreases in median net worth appear to have been driven most strongly by a broad collapse in house prices. ... The decline in median net worth was especially large for families in groups where housing was a larger share of assets, such as families headed by someone 35 to 44 years old (median net worth fell 54.4 percent) and families in the West region (median net worth fell 55.3 percent). ... Although the overall level of debt owed by families was basically unchanged, debt as a percentage of assets rose because the value of the underlying assets (especially housing) decreased faster.

Meanwhile, Obama has focused his laser-like vision on his golf game and mucking with your healthcare while blowing off the real crisis in America. 

So much for not letting a good one go to waste, eh Rahm?

Hey Obama! I Got Your Private Sector Right Here! Jerk.

Wow. Now The Obama "Cool" Is Racist, Too.

What isn't?

Story here:

"There's an ad, talking about [how] the president is too cool, [asking] is he too cool? And there's this music that reminds me of, you know, some of the blaxploitation films from the 70s playing in the background, him with his sunglasses," Rye said. "And to me it was just very racially-charged. They weren't asking if Bush was too cool, but, yet, people say that that's the number one person they'd love to have a beer with. So, if that's not cool I dont know what is.

She added that "even 'cool,' the term 'cool,' could in some ways be deemed racial [in this instance]."

Under Obama, Federal Government Hiring Actually Is Up 0.85 Percent, State/Local Down

Calculated to date from February 1, 2009, federal hiring under Obama is actually up almost 1 percent even though federal tax revenues are broadly down.

State and local governments have cut payrolls by 2.2 and 3.5 percent to date from Feb. 1, 2009, respectively, in an environment of declining revenues due to income stagnation, massive unemployment in the private sector, and declining property tax revenues due to the implosion of housing values.

View the data here, here, and here.

It doesn't make sense that state and local governments are doing their fair share while the federal government is not.

Obama should practice what he preaches.

John Tamny Exposes National Review's Conservatism As Monetarist Currency Devaluation

For Forbes.com, here:

Beckworth and Ponnuru . . . seek money creation to achieve economic growth, or to quote them directly, “central banks would be required to try to keep nominal spending growing at a certain rate” through 5% annual money growth. They bemoan “nominal spending” that “is currently far below the pre-crisis trend”, and remarkably they believe the Fed can remedy this by virtue of gunning the money supply.

Of course missed by the writers is that all demand in any economy results from the provision of supply first (Say’s Law, as one would expect, merits no mention in their manifesto), so to boost the demand, you don’t devalue the currency as they would like to; instead you stabilize the currency so that liquid investors feel comfortable offering up capital to producers. Schumpeter understood that there are no entrepreneurs (and no production) without capital, but if the desire is to devalue the currency then investable capital is naturally going to dry up; that or migrate toward the inflation hedges of yesterday as it did in the ‘70s and since 2001.

An Historicist Explanation Of Fascism Which Unintentionally Describes America

Seen here:

"Fascism resulted from the mobilization of mass armies, the creation of command economies, and the problem of reintegrating veterans into war-torn societies."

Is there a better explanation than this for what happened in America since The Great Depression, whose presidents have drawn their inspiration, now more, now less, from the strong men of Europe as mediated through the legacy of FDR?

In America the creation of the command economy preceded the mobilization for the world war, but the twin developments set the conditions for the state's new role in American life. 

American-style fascism bloomed in The Great Depression and Second World War and then grew through the post-war cult of education, with its original GI Loan Program writ ever larger year by year with newer names and until finally nationalized under Barack Obama, who owes his political success not to the Marxist socialists who inspired and bank-rolled his education but to Chicagoans whose financial success in real estate depended upon government planning, cooperation and exploitation of the poor. He is the epitome of the strangely blended system. 

The proliferation of American fascism occurred through the decades-long expansion of minor educational institutions, cow colleges and junior colleges into degraded and degrading universities which came to elevate the promise of mere vulgar employment to the status of an educated person's learned and wise perspective. A Bachelor's Degree in Physical Education became the equivalent of one in mathematics, and the sixth grade teacher seriously asks the students today to bring an empty white business "envelop" to the next class.

If an education no longer results in gainful employment, we are told, a sin has been committed against education's one and only commandment: Thou shalt get a credential for a job. From fund-raisers who call university alumni to the Rush Limbaughs and Dave Ramseys of the world, an education in a traditional department of human knowledge which fails to lead to employment is useless and worthless.  

Today there are hopeful signs of acute crisis in this consensus even as it reaches its zenith.

Participants graduate with crushing loads of debt in a new environment of depressed wages, long before they have good jobs, spouses, homes, cars and children.

And while the fields of graduates are white unto harvest and they continue to be recruited on-site by big businesses, many of which are responsible for key program funding for the system itself, the number of available jobs has shrunk dramatically as low American GDP resembles present day Europe more than it does its own much more vibrant past. It's as if the system has reached its limit to perpetuate itself.

The lesser products of the universities end up as functionaries in government union shops in the public school system or as media mouthpieces whose job it is to promote the jobs message, but declining tax revenues in the states and diffusion of media due to technology change the calculus for career-minded teachers and "information" workers. As we've seen in Wisconsin, the people who must pay and pay and pay again have had enough. And today's pad will doubtless become yesterday's laptop.

Those not yet quite up to the college experience who can't get an assembly line job because there aren't any may hope to join the military with the promise of money for education later, after the tour of duty. But the prospects for duty look less likely to include personnel-rich adventurism going forward as drone-war proliferates. Out-of-shape teenagers and malcontents in any event will find it increasingly difficult to join a shrinking all-volunteer military.

The failure of faith in the cult of education will necessarily precede the demise of the system, and it appears to be accomplishing this all by itself by not delivering on its promise. It wouldn't be the first time, but you'd need a useless degree to appreciate that. 

Romney Will Say Anything To Get Elected, Whether It's 1994 Or 2012

Not our guy in 1994. Not our guy in 2006. Not our guy now.

Not our guy ever.

Obama's All Wee-Wee'd Up Because Total Government Employment Is Down 1.03 Million

Government employment at all levels reached its zenith in 2010 at 22.997 million, spiking up dramatically very briefly under Census hiring between April and May 2010, after which it steadily declined. Today it stands at 21.969 million, a drop of 1.028 million from that one-off peak, or 4.5 percent.

More to the point, today's level of government employment was reached for the first time just a few years ago, in 2006, so what's happened is not much of a contraction compared to what happened in private employment, the recent nadir of which was 106.8 million at the end of January 2010.

That level of private employment last prevailed way back in 1998, and from peak to trough is a 7.6 percent decline, over 1.5 times worse than what happened in government jobs.

Private employment today stands at March 2005 levels, no thanks to Obama, but when it comes to shared sacrifice, government today could actually stand to give up some more jobs, say 229,000 more, all things being equal, to match where the private sector stands historically, which is still behind.

But you won't be hearing that from the Whiner In Chief About Fairness. 

Obama Lies About Private Sector: 4.6 Million Without Jobs Aren't Doing Fine

Private sector employment has plummeted from its peak in late 2007 by 4.6 million. Back then, 115,647,000 worked in the private sector. Today just 111,040,000 do.

Since the recent nadir of private employment in January 2010, 4.2 million have re-entered the work force.

Unfortunately since the beginning of 2008, part-time employment has skyrocketed from 4.9 million to 8.1 million today, calling into question how good are the jobs recovered over the entire period. As recently as September 2011, part-time employment was as high as 9.3 million.

In any event, private employment is back to 2005 levels, which for its time was no achievement. The growth trend in jobs first reached that level back in 2000 and 2001, only to suffer the slings and arrows of the dotcom bubble and 911.

America has not really recovered from that time, otherwise private employment would be far in excess of 120,000,000 today.

The current president has no imagination, despite not being named Bush.

Sean Hannity's Libertarianism Is Stupid

The radio ad for Sean Hannity's program runs incessantly, featuring him saying, "Society doesn't need to put its seal of approval on the choices people make."

This in reference to same sex marriage.

He obviously doesn't appreciate how the government already puts its seal of approval on people's choices, and has done so for a very long time.

The most obvious social example is marriage itself, which receives a healthy tax preference in the form of the tax code's filing status "married filing jointly" . . . since the end of the Second World War! This isn't just a seal of approval. It's actually a financial encouragement to marry.

Or consider the child tax credit, which you aren't going to get without having children. With it, the government encourages the having of children.

Or the earned income credit, which you don't get unless you have some earned income. It's government's way of encouraging people who don't work at all to get a job and get work experience, on the assumption that they will move up the ladder eventually to positions which pay too much to receive the credit.

All of these things the government encourages to promote social stability in the form of nuclear families, home ownership, work, and population growth, all of which are essential to . . . tax revenue.

Giving same sex partners the same rewards as heterosexual unions ignores the fact that the former are naturally incapable of growing the population. Government has no interest in promoting the ineffectual.

"Be it then, as Sir Robert says, that anciently it was usual for men to sell and castrate their children, Observations, 155. Let it be, that they exposed them; add to it, if you please, for this is still greater power, that they begat them for their tables, to fat and eat them: if this proves a right to do so, we may, by the same argument, justify adultery, incest and sodomy, for there are examples of these too, both ancient and modern; sins, which I suppose have their principal aggravation from this, that they cross the main intention of nature, which willeth the increase of mankind, and the continuation of the species in the highest perfection, and the distinction of families, with the security of the marriage bed, as necessary thereunto."

-- John Locke

New Evidence Proves Obama Was Member Of Socialist Third Party In 1996

And lied about it in 2008 to get elected president.

So claims Stanley Kurtz for National Review:

Recently obtained evidence from the updated records of Illinois ACORN at the Wisconsin Historical Society now definitively establishes that Obama was a member of the New Party. He also signed a “contract” promising to publicly support and associate himself with the New Party while in office.

Minutes of the meeting on January 11, 1996, of the New Party’s Chicago chapter read as follows:

Barack Obama, candidate for State Senate in the 13th Legislative District, gave a statement to the membership and answered questions. He signed the New Party “Candidate Contract” and requested an endorsement from the New Party. He also joined the New Party.

Consistent with this, a roster of the Chicago chapter of the New Party from early 1997 lists Obama as a member, with January 11, 1996, indicated as the date he joined.

Knowing that Obama disguised his New Party membership helps make sense of his questionable handling of the 2008 controversy over his ties to ACORN (Association of Community Organizations for Reform Now). During his third debate with John McCain, Obama said that the “only” involvement he’d had with ACORN was to represent the group in a lawsuit seeking to compel Illinois to implement the National Voter Registration Act, or motor-voter law. The records of Illinois ACORN and its associated union clearly contradict that assertion, as I show in my political biography of the president, Radical-in-Chief: Barack Obama and the Untold Story of American Socialism.

Why did Obama deny his ties to ACORN? The group was notorious in 2008 for thug tactics, fraudulent voter registrations, and its role in popularizing risky subprime lending. Admitting that he had helped to fund ACORN’s voter-registration efforts and train some of their organizers would doubtless have been an embarrassment but not likely a crippling blow to his campaign. So why not simply confess the tie and make light of it? The problem for Obama was ACORN’s political arm, the New Party.

The revelation in 2008 that Obama had joined an ACORN-controlled, leftist third party could have been damaging indeed, and coming clean about his broader work with ACORN might easily have exposed these New Party ties. Because the work of ACORN and the New Party often intersected with Obama’s other alliances, honesty about his ties to either could have laid bare the entire network of his leftist political partnerships.

Although Obama is ultimately responsible for deceiving the American people in 2008 about his political background, he got help from his old associates.

Read the whole story here.

Sweden's Economic Miracle Partly Due To Cutting Spending By 20 Percent Of GDP

So says Anders Aslund for Bloomberg.com:

Not so long ago, Sweden could claim world leadership in unmitigated Keynesian economics, with a 90 percent marginal tax rate and a welfare state second to none.

Now Swedes look at the conflict between the U.S. and German examples over whether more spending or more austerity is the key to financial salvation, and for them the choice is easy: Germany was right. Northern Europe harbors no sympathy for the spendthrifts of Southern Europe.

Americans still think of Sweden as a tightly regulated social-welfare state, but in the last two decades the country has been reformed. Public spending has fallen by no less than one-fifth of gross domestic product, taxes have dropped and markets have opened up.

The situation is similar in the other Scandinavian countries, the Baltic nations and Poland. But no turnabout has been as dramatic as Sweden’s.

Read the rest, here.

"The Banking System Is Incompatible With Public Safety And Prosperity"

So wrote Thomas Jefferson to Richard Rush, in 1819.

Read why here.

NAACP's Endorsement Of SS Marriage Causes Leader From Iowa To Resign

Yah man! Hallelujah!

Story here.

EU's Equivalents Of US FDIC Can't Cover Even 1 Percent Of Eligible Deposits In Bank Failure

According to a March 2011 policy brief from the European Credit Research Institute, here:

The [European] Commission’s Joint Research Centre (JRC) collected data from all DGS [Deposit Guarantee Schemes] in the EU to examine the ability to handle payouts (JRC, 2008). It revealed that the coverage ratio in most countries is not even sufficient to protect 1% of eligible deposits . . ..

. . . [T]he JRC carried out a ‘stress-testing’ exercise, which confirmed the weaknesses of EU DGS to handle payouts. Three different scenarios were tested, taking into account the availability of funding (ex ante, ex post and borrowing of funds):

•Small-impact scenario: €100 million average financial burden

•Medium-impact scenario: €2.18 billion average financial burden

•High-impact scenarios: €8.69 billion average financial burden

Results showed that all EU DGS could cover a small-impact bank failure. A medium-sized failure could be borne by seven EU countries with the highest coverage ratios using only ex ante funds. Six member states would not be able to reimburse depositor claims in the medium-impact case, even if they used all available funding, including ex post funds and additional borrowing. No member state was well-equipped to cope with a large failure using only ex ante funds.

To date in the current crisis, the US FDIC has paid out in excess of $88 billion. It appears the EU equivalents can't pay out even 10 billion euros. All guarantee schemes are individual member country responsibility.

The UK Guardian Savages Obama As An Authoritarian and Killer

Here:

[T]he three major policies of the Bush war on terror – rendition, military commissions and indefinite detention – continue to this day. But Mr Obama has also presided over a massive expansion of secret surveillance of American citizens by the National Security Agency. There is a ferocious crackdown on whistleblowers. He has made more government documents classified than any previous president. And he has become a true believer in drones. ...

[T]his administration is highlighting the fact that its president is a killer. In this new age of secrecy, three dozen current and former advisers are allowed to talk to the New York Times about the president's role of personally overseeing the shadow war with al-Qaida. Mr Obama has not been shy about the role he personally played in Osama bin Laden's death. His counter-terrorism adviser John Brennan makes speeches defending drone strikes as legal, ethical and wise. This administration is not on the defensive about its summary executions. It positively seeks to advertise them.

Wisconsin's Walker Ahead By 9 Points After 85 Percent Counted, CNBC Calls Victory Narrow

Maybe Sarah Jessica Parker Supports Marrying Anyone You Want For A Reason?

. . . here at SarahJessicaParkerLooksLikeAHorse.com.

Does she look more like her Mom, or her Dad?

Spikes In European Irrational Stock Market Exuberance Visualized From The Mid-1990s

Total Consumer Debt Has Barely Budged Since Late 2010

Americans continue deep in debt at $11.44 trillion in Q1 2012, which is $.04 trillion higher than in late 2010, according to this and the latest chart from the New York Federal Reserve:

As of December 31, 2010, total consumer indebtedness was $11.4 trillion, a reduction of $1.08 trillion (8.6%) from its peak level at the close of 2008Q3, and $155 billion (1.3%) below its September 30, 2010 level.

What's The Difference Between A Light Bulb And A Rear End?

You can unscrew a lightbulb.

The Queers Are Only 2 Percent Of The Population

Not 10 percent, and certainly not 25 percent of the population.

They just make up for their small numbers by being loud and by otherwise acting like pricks.

Story at The Atlantic, here.

AP Obama and CNBC.com Team Up To Poo-Poo All That "Obama Is A Socialist" Stuff

What else would you expect from the ideological nexus of media and academia?

Honesty?

These people can't even acknowledge we've experienced a minor economic depression let alone the utter failure of the predictions of their analysts and economists. Instead of failed 5 year plans as in the former Soviet Union we are treated to weekly, monthly and quarterly misses of an astounding variety so routine no one bothers to remark them any more except the gluttons for punishment in the blogosphere.

Remember the green shoots of recovery gibberish that went on and on for months after the so-called recession ended? Or the jobs created or saved nonsense? Or the bottom in housing? Before all that it was how bad was Bush's economy, an economy which Obama now only wishes he had so he could boast about it, which is why he must continue to denigrate it four years removed.

The regulation of American business by government is so massive it is a joke to call this a capitalist economy. Designed to pick the winners and the losers, the revolving door between the two carries a veritable freeway of crony traffic a 1930s fascist would envy.

It's almost pathetic the article spends most of its time quibbling about definitions from the left when Obama's is a socialism of the right.

The whole point is to obscure this fact.

Socialism is a wonderland, Alice, where words mean whatever they say they mean.     

Part Time For Economic Reasons Up Almost 400,000 During March and April

Data and graph here.

The all-time high in this metric was reached on 9-1-10 when 9.25 million were part-time for economic reasons.

The most current reading puts 7.98 million part-time.

It was in late 2008 when the measure reached above 7 million for the first time, and the lowest below 8 million we've fallen since 2009 was in March 2012 when 7.58 million were part-time.

Long Term Investors In Japan Down Over 15 Percent . . . Since 1984!

Housing Prices Need Not Increase, Just Remain Stable, For Economic Recovery

So says Harvard's Edward Glaeser for Bloomberg.com here:

The 1990s offer us one upbeat message. Housing prices stayed static for six long years after 1991, and in real terms, housing prices were no higher in 1998 than they were in 1991. Yet real GDP grew an impressive 28 percent between 1991 and 1998. It’s a myth that the housing market must recover before the larger economy can surge.

Not quite.

The average Case Shiller Home Price Index for 1991 was 125.55, and was 125.10 for 1998, but the chart for the period was flat to slightly declining, until the provisions of the Taxpayer Relief Act of 1997 helped begin the housing bubble. Prices reached a nadir for the period in 1996 at 117.64, a decline of over 5 percent from 1991.

Crude Is Down Nearly 25 Percent In 3 Months, Gasoline Is Falling

On February 25th I reported that gasoline prices had spiked in Grand Rapids, Michigan, from $3.13 to $3.48 in about one week's time, an 11 percent jump.

On June 1 I filled at $3.55 the gallon. Today the cheapest price is already $3.38 the gallon, a 5 percent fall.

The top price I paid this season was $3.89 the gallon, so we've fallen only 13 percent overall . . . so far.

Obama Blames High US Unemployment On . . . Europe!

Betcha thought he blamed Bush again, right?

The story is here:

Obama, speaking at a Chicago fundraiser on June 1 as he bids for re-election in November, said that a report showing the slowest month of U.S. employment growth in a year was in large part “attributable to Europe and the cloud that’s coming over from the Atlantic.” The “whole world economy has been weakened by it,” he said.

With this guy the buck always stops somewhere else.

Vehicles Sales At 14.4 Million Units Annualized Through March 2012

The chart is here and the data here.

Total auto loans outstanding in Q1 2012 came to approximately $686 billion, or 6 percent of the $11.44 trillion total household debt, according to the May 2012 report of The New York Federal Reserve.

The Shiller p/e Will Have To Get Much Lower Than This Before We Can Talk Of Capitulation

Capitulation means a multiple between 5 and 10, and assumes a complete lack of interest in stock investing. Tonight's multiple is still quite elevated above 20:

(This post replaces a previous one containing erroneous information about the Shiller p/e and has been deleted).

Misspelled Words Have Become Routinized At The Atlantic

As seen here, where the writer evidently thinks "routenized" is built off of "route", or something:

Gold To Oil Ratio Vaults To 19.5

Gold surged on US economic weakness and euro fears to $1,622 the ounce today, while oil has tumbled to $83 the barrel, elevating the gold to oil ratio 30 percent off the 15 level.

Average Unemployment: Pick A Year . . . Any Year

2001 4.7 percent

2002 5.8 percent

2003 6.0 percent

2004 5.5 percent

2005 5.1 percent

2006 4.6 percent

2007 4.6 percent

2008 5.8 percent

2009 9.3 percent

2010 9.6 percent

2011 9.0 percent

2012 8.2 percent (five months to date).

As soon as Obama takes credit for a year, you'll know it's no longer George Bush's fault.

Moral Hazard In Pictures

US Federal Reserve

European Central Bank

Bank of England

People's Bank of China

German Bundesbank

Bank of Japan

Banque de France

Swiss National Bank

The British Knee Is On The March!

“It’s quite impossible that the man who had invented Sir Roderick Spode in 1938 was prey to any covert sympathy for fascism.”

-- Christopher Hitchens on P.G. Wodehouse, quoted here

Deposit Insurance In Spain Is Meaningless

If you want to know why 100 billion euros have fled Spain in the first quarter of this year, here's why:

In Spain there are about 800 billion euros of insured deposits, but the deposit insurance fund has assets of just 7.9 billion euros, and 5.3 billion has already been committed to troubled savings bank Caja de Ahorros del Mediterraneo (CAM), Barclays analysts estimated.

Unemployment Rate Climbs To 8.2 Percent Despite Weasel Words From Bureau Of Lies And Statistics

Obama's Laser-Like Focus On Jobs

The report from the Bureau of Labor Statistics may be found here. PDF here.

Notice the attempt to weasel out of the fact that the rate actually increased 0.1 from last month by stating the rate was "essentially unchanged":

Nonfarm payroll employment changed little in May (+69,000), and the unemployment rate was essentially unchanged at 8.2 percent, the U.S. Bureau of Labor Statistics reported today. Employment increased in health care, transportation and warehousing, and wholesale trade but declined in construction. Employment was little changed in most other major industries.

The Obama regime is presiding over an employment catastrophe above 8 percent for his entire presidency: 3 years and 4 months.

GDP Revised Down For Q1 2012 From 2.2 Percent To 1.9 Percent

You talkin' to me?

Way to go, Brownie!

Here's the story from the horse's mouth:

Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 1.9 percent in the first quarter of 2012 (that is, from the fourth quarter to the first quarter), according to the "second" estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2011, real GDP increased 3.0 percent.

The GDP estimate released today is based on more complete source data than were available for the "advance" estimate issued last month. In the advance estimate, the increase in real GDP was 2.2 percent (see "Revisions" on page 3).

The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, residential fixed investment, private inventory investment, and nonresidential fixed investment that were partly offset by negative contributions from federal government spending and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.

The deceleration in real GDP in the first quarter primarily reflected a deceleration in private inventory investment, an acceleration in imports, and a deceleration in nonresidential fixed investment that were partly offset by accelerations in exports and in PCE.

Michelle Obama Lies About When And Why Obama Gave Up Pot

Neither one can tell the truth

Here's what Michelle Obama has just claimed, as quoted here, in response to a question about her husband's prolific pot-smoking habits:

'When he lost his father, that was one of those click-in moments. And he really buckled down, he transferred schools, went to Columbia, and thought about how to use his life to the fullest.'

This is nothing but the same sort of fictionalization we've come to expect from Obama himself, say, about his girlfriends, experiences with whom are conflated in his book in composite characters, not real ones.

Michelle is lying about the chronology of events which supposedly led to Barack becoming a serious person, pinning it all of the death of Barack Obama Sr. But Obama's father died late in 1982 when Barack was already at Columbia for a year. Barack transferred to Columbia in the fall of 1981. See for example, here.

The death of Obama's father had nothing to do with transferring to Columbia. In fact, the death post dates the move from Occidental to Columbia by two years.

The truth is we don't know when Obama quit smoking weed. But we do know Michelle Obama isn't telling the truth about it.

President Pothead Strikes Again, Angering Poland

This time the president has referred to Nazi concentration camps in Poland as Polish concentration camps.

Just one more reason why the president's past (?) drug use makes him unfit for office in the present. Kind of like how Biden's 1988 brain aneurysms have something to do with his now very full repertoire of offensive gaffes which disqualify him.

The story is here.

But look on the bright side. At least Obama didn't call Jan Karski a corpseman.