Wednesday, October 2, 2013

And there before me was a Pale Horse

Obama is talking to Wall Street about the Government Default as in, (the end of the F'n world) being a very real possibility. We'll see what that does to the markets starting in Asia in just a couple of hours. Is he really talking about a Pale Horse who's rider said unto him, "Come and see"....

Maybe we're just talking about the Federal Reserve going all QE666 and buying up all the outstanding dollar denominated debt on the planet. They could actually do that. It would put an awful lot of cash into circulation.... I'm not sure what that would really do.... Since all that cash would be in only a relatively few hands, maybe nothing would happen. Maybe we could just have a Biblical Jubilee, forgive all the debt and start over. That's probably not what the right-wing billionaires behind the current crisis have in mind. I'm thinking they have in mind bringing in the other three Horsemen and having a good old-fashioned Apocalypse.

In the 'real news' today, the production company that was paying Micheal Jackson's doctor to make him into a zombie, you know, just like the in the video 'Thriller'. They beat the liability rap in a marathon, as in (shamble along pursuing the living until they're exhausted and out of ammunition', they (the corporation) overtook and 'beat' the 'wrongful death' civil suit brought by the guardians of Jackson's kids.

Aren't you glad the Federal Courts aren't affected by the 'shutdown'? By the way corporations use 60% of the court system, but they don't think they should pay any taxes to support it. The Tea Party will take care of that taxing problem.

Twitter @BruceEnberg - providing daily tips on how to keep the Walking Dead of the far right from tearing the flesh form your bones and consuming your brains

Tuesday, October 1, 2013

Young Dr Frankenstein to Igor, "You've brought me an abnormal brain?"

Treasury Secretary Lew informed Congress today that the Obama Administration is now using the final set of extraordinary measures to fund the government pending an increase in the debt limit. Wall Street seems unconcerned about a default, apparently accepting the Republican leadership's assurances that a default will not occur.

If the United States were unable to borrow, the likely action would be stop redeeming Treasury bonds that come due. The doomsday scenario should this happen is that major holders of US debt like China, Japan and Middle East countries would start selling off their bond holdings driving the value down and interest rates into hyperinflation territory. However, if the Federal Reserve were to step up and buy all available bonds this wouldn't be a problem. Since that's basically what they've been doing for several years already with QEs 1 through 3, this probably explains the total lack of panic on Wall Street.

In theory the government could also go to the Federal Reserve for needed cash by creating some sort of warrant system for paying major contractors that would then use these warrants as collateral to borrow from the Fed banks at zero interest. The idea of the platinum coin was rejected by Obama the last time the Tea Baggers broke loose from their restraints and began terrorizing the village, but there is no reason it couldn't be issued this time.

The Republicans could take Obama to Court for any scheme like this to maintain the Full Faith and Credit of the United States of America as all government officials are required to do by the 14th Amendment. How the Supreme Court would rule is anybody's guess, but they would probably side with the government rather than the Tea Party. If they didn't, would Obama go all Andrew Jackson on them, and tell them to take a hike?

Conservatives have created the fiction that the 'debt ceiling' has always existed because Congress has long been in the habit of approving bond issues. In fact the United States has always been running up debts, as opposed to issuing bonds that are an interest bearing device created for rich people to invest in. It was the idea of actually paying interest over a fixed maturity that needed Congressional approval, not borrowing money.

The resolution of all of this depends on how many people you can get to agree on what will happen next. You have the crazy people on the right that think the only gold coins should be used. By the way, gold dropped 3% today. You've got bankers that think that they are entitled to a slice of everything, even though they don't actually do anything. Then you have people like Sen Elizabeth Warren that think that we've had quite enough of this already.

Twitter @BruceEnberg - keeping the village informed about the goings on at the castle

Sunday, September 29, 2013

Blood stained rag

I've been going round and round on Twitter with some rightwing nut job from Texas that posted a selfie of her in front of a Confederate battle flag. You know all the stuff, "Obama is not my president" he hates Conservatives, blah, blah, blah.

The thing about the 'Stars and Bars' is that traitors flew that flag while killing American soldiers defending their country. They say it's just a symbol of their 'heritage' after all, their ancestors were honorable men (except for that whole treason thing, slavery, misogyny, pick, pick, pick). Then, why not if you're German, why not fly the Nazi flag? Well, people a little bit further to the right do that too. The lamest excuse is they don't fly the CSA 'national' flag. The South stopped using it as the battle flag because it was mostly white and they couldn't keep track of if they had surrendered or not.

The Stars and Bars has a lot of the blood of patriotic Americans on it. To fly it is nothing less than treason, the same as it was in 1865.