I have an old observation to offer. By the time the news services pick up on some fact, its old news. CNBC news (owned by NBC, owned by General Electric, CEO-ed by Jeffery Immelt, in a cozy relationship with Mr. Obama) offered a dose of panic this morning about the financial status of state and local governments.
Every investor has known for a while there are a dozen American state and municipal governments fixing to go insolvent July 1, 2010, the same day tons of new public debt will be issued from those government bodies. Public insolvency (bankruptcy to you and me) for governments is handled under Chapter 9 of the federal bankruptcy laws.
Those governments will offer new bonds to float their bloated debt. There will be few buyers who offer to lose their shirts.
Corrupt elected officials over-committed public wealth to corrupt union bosses to precipitate these state and local problems (witness Washington state). The crooked politicians got massive kickbacks in both cash and free campaign help in exchange.
Mr Obama may insist the feds step in again and print more dollars to buy more toxic assets, this time government assets. This 'print more money' phenomenon may also answer the question why businesses are awash in cash --- No one trusts American dollars to hold value anymore, but a business must take the dollars - its the law. The business have trouble finding ways to get rid of the dollars they have.
So everyone is buying gold. Owning gold works as an alternative to unreliable paper money. And no one should buy state or municipal paper for more than 20 cents on the dollar.
Does anyone think apesnot government spending is the way out of the mess apesnot government spending caused? Even Mr Obama doesn't think so. That is clear - or else he would simply spend the money already committed. But Mr Obama is a unimaginative man who hopes the electorate is stupid.
Its amazing the economic mayhem Mr Obama has done in less than two years. The man is evil. How can you tell? The system he launched is evil and will cause much suffering. But Mr Obama doesn't mind if you suffer: He is an elitist, in his own mind so much better than the people. He should resign now.
Mr Obama and the Left will insist the federal government now has to take over for state an local governments and administer the country 9for the good of the public). This is one method American "liberalism" is attempting overthrow of sound, just and lawful government.
Afternoon Update - See? I told you so.
Mr Obama insists more federal spending is needed to speed up the recovery. According to Mr Obama's own Stimulus results, only $415 billion of $727 billion of already enacted Stimulus from January 2009 has been spent. If Mr Obama is at all correct that more government spending is necessary, how about him finishing up the spending already committed?
C'mon, Mr Obama, you remember all that money for your big government pet big wigs who ne-e-e-eed more office decorating money. Your pet insurance agents and bankers need more insurance and banking money. And whatever else passes for mismanagement of money these days. You know, mismanagement of the Government money, the People's money. Aw - Mr Obama.
Mr Obama, the Doofus in Chief, committed to failure.
The Sovereign Society published a sarcastic little questionnaire.
Will Federal Government Ever Get out of Debt?
A.) Yes - by declaring all their debts null and void.
B.) Yes - they'll print up trillions of dollars and pay it off.
C.) No - the status quo will continue and the rest of the world will keep buying Treasuries.
D.) Not Sure... Who the heck knows?