Great opinion piece on the Federal Reserve Bank by George Will

I highly suggest that you read it.

Quote:

Because Ben Bernanke’s public persona is as mild as milk, the transformation in American governance in which he has participated is imperfectly understood and hence insufficiently deplored. The change is dramatized by two recent developments.

One was the campaigning by several constituencies for and against what supposedly were the two leading candidates — Larry Summers and Janet Yellen — to replace Bernanke as chairman of the Federal Reserve. The Fed can no longer be considered separated from politics.

[….]

The Fed has become the model of applied progressivism, under which power flows to clever regulators who operate independent of political control. The Fed is, however, a creation of Congress, which may not forever refrain from putting a bridle and snaffle on a Fed that increasingly allocates credit, wealth and opportunity.

via George Will: The Fed has become a creature of politics – The Washington Post.

There are some of us, who believe that we should end the fed and go back to the gold standard. I happen to be one of those people.

Trickle down recession

This is what happens when Washington DC scares the living crap out of everyone:

SINGAPORE: Oil prices fell in Asian trade today on signs of weaker US energy demand and as positions hardened in a fiscal showdown in Washington that could push the world’s biggest economy back into recession.

New York’s main contract, light sweet crude for delivery in January was down 16 cents to USD 87.72 a barrel in the morning and Brent North Sea crude for January shed nine cents to USD 108.72.

A weekly US government report released yesterday showed a surge in supplies of gasoline and other products, indicating softer demand in the world’s biggest oil consuming nation.

The supplies of distillates, which include diesel and heating fuel that are closely watched at the onset of winter, rose by three million barrels, while gasoline inventories leaped by 7.9 million barrels, five times more than forecast.

“Oil prices fell… after data showed a huge increase in gasoline stockpiles in the United States last week,” Phillip Futures said in a market commentary.

The political impasse in Washington over avoiding mandatory fiscal cliff of tax increases and spending cuts in January that may toss the US economy back into recession was casting a cloud on sentiment.

via Oil prices down in Asian trade – The Economic Times.

This is what happens when you scare the living crap out of everyone with a chicken match. If you are invested in oil, get out while you can. On the other hand, gas prices are going to come down and for we middle class, that is a very good thing. But, for those in the market, it sucks. Good time to get out of futures and get into gold or something.

Oh yes, and the Democrats are owning this one too.

Another good reason we need a new President

Gloomy feeling on Wall Street prior to GDP Q3 reports

A new president would bring confidence to the markets and to investors, thus helping the economy.

Not bad for a high school dropout eh? 😉

Movie: The Crash of 1929 & The Great Depression

There are a good deal of parallels between this and what is going on now in this country.

It could and most likely will happen again.

Enjoy this six part series by PBS on “The Crash of 1929 & The Great Depression”:

GM’s jobs news is nothing more than a ruse

Great and wonderful news, right? Wrong.  Just another bogus headline from a company that is about ready for bankruptcy.  This story comes via MLive.com.

General Motors Co. and the state are expected to announce today that GM will create 2,000 new jobs in Michigan, beginning with up to 1,500 at a new information technology innovation center in Warren.

The automaker and the Governor’s Office are expected to make formal announcements later today.

It’s unclear where GM would add the other 500 jobs, but the state says the innovation center is the first of three projects the company will announce.

GM will invest $300 million combined for the three. The state said GM plans no major investment spending on the information technology center; it will be housed in an existing building undergoing renovation on the Warren Tech Center campus.

The center will hire 1,500 new employees within four years and will add to information technology employment already in Warren, Randy Mott, GM’s vice president of information technology and chief information officer, said in a Friday interview.

via GM to add 2,000 jobs in Michigan | The Detroit News | detroitnews.com.

This is where I am going to get accused of sounding like a Democrat or something worse.

This headline is the biggest stinking joke, since the election Barack Obama. These jobs above here? There are not jobs that anyone could do, you know, like me? These jobs are one that would need some serious degrees —- none of which I honestly have at all. So, these are not 2000 jobs for the public, like labor jobs; as the labor jobs are protected by the unions. These are tech jobs that will end up being filled by immigrants, legal or otherwise from foreign countries; who have the degrees to get these jobs. The rest will go to protected minorities, who happen to have those degrees as well.

I just have to ask aloud; how much of this investment, came from the taxpayers dollars that ended up bailing out this failed business? I really do not know if I really want to know the answer to that or not. However, what I will say is this here; the local Detroit media needs to stop with the dishonest headlines and get out of tank for the big three.  I mean, do not get me wrong, I want to see General Motor succeed, as their success personally affects my family, namely my Father, who retired from that company after 31 years. But, when I see dishonest headlines like this, it disgusts me. People scanning through, think GM is mass hiring workers for the plants. Which they are not, they are hiring salaried employees, that they really do not need and doing this, will most likely make them go broke again.

It is time, that the local Detroit media started telling the complete truth about the big three.