Posted by Paul Krugman
The first ever GAO(Government Accountability Office) audit of the Federal Reserve was carried out in the past few months due to the Ron Paul, Alan Grayson Amendment to the Dodd-Frank bill, which passed last year. Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator, led the charge for a Federal Reserve audit in the Senate, but watered down the original language of the house bill(HR1207), so that a complete audit would not be carried out. Ben Bernanke(pictured to the left), Alan Greenspan, and various other bankers vehemently opposed the audit and lied to Congress about the effects an audit would have on markets. Nevertheless, the results of the first audit in the Federal Reserve’s nearly 100 year history were posted on Senator Sander’s webpage earlier this morning: http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3
What was revealed in the audit was startling: $16,000,000,000,000.00 had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland. Continue reading →
by Dan Perrin –
It is irrational to expect different results from promising cuts in the future and raising the debt limit immediately.
The Dem trap is simple, wait out and refuse any real cuts, and then use Wall Street and the Federal Reserve and others to force Congress into granting new debt immediately, with promises of cuts in ten years.
The new deal sounds like the same old formula, it will change nothing. This is not serious reform. Continue reading →
WHERE HAS COMMON SENSE GONE, No. 18, Thomas Paine – March 2011
Economists have a well recognized axiom used to describe one aspect of production activity. It is called the “Law of Diminishing Returns”.
The law states “that we will get less and less extra output when we add additional doses of an input while holding other inputs fixed. In other words, the marginal product of each unit of input will decline as the amount of that input increases holding other inputs constant.”
What does this axiom really mean? A simplified example can be used to illustrate what is meant.
Suppose a farmer has typically harvested 100 units of crop for every 100 pounds of seed he has planted in his field. This ratio has held steady for years with only minor variances due to generally benign weather conditions year to year. The 100 units of crop can be considered the economic production. The inputs are the amount of seed sown, the available amount of land, the amount of fertilizer applied, the number of days of sunshine and normal temperature and the amount of rain that falls. Continue reading →
WHERE HAS COMMON SENSE GONE? No. 17 Thomas Paine – March 2011
Where to start a discussion……..the Twilight Zone is the Twilight Zone no matter where you enter it. One might add….Common Sense is in short supply once inside the Twilight Zone. I had a brief flashback to an old Rod Serling Twilight Zone episode when, a couple of nights ago, I watched Minnesota Representative Michele Bachman (RTP) try to discuss certain aspects of the Obama budget and Unfunded Liabilities.
I like Michele Bachman. She presents herself well and exudes civility and dignity to a degree not demonstrated by many of the other elected representatives we, as a nation, have sent to Washington. I think she has some future potential in politics, but that potential won’t last long if she continues to address issues on which she is woefully ignorant. This is doubly bad if it happens to be an issue she is likely to be involved in for most of her working days as an elected official. Her attempts to address certain issues in Obama’s budget must have been embarrassing to many viewers. My concern however is this…..Was this spectacle, where she kept repeating the same words even though it was obvious she was lost to any comprehension of the message she was trying to deliver, representative of the knowledge base most elected representatives have to draw from when they engage in budget solutions and government finances in general? Continue reading →