Recent Facebook Postings on the Great Recession
(Editor's Note: Below you will find multiple postings that I've made to various Facebook pages. They're being copied here, in front of Facebook's firewall, for future reference)
Here Come the Currency Battles
At the root is an unwillingness on the part of major Western economies to let the prices of certain asset classes--especially real estate in the U.S., and bad bank debt in Europe--find their actual value. In that sense, the notion that governments are protecting Big Finance and other powerful lobbies from the consequences of betting on a bubble is true.
The Federal Budget Fiasco
If we do not increase the federal budget limit, we will immediately be forced to balance the budget (no constitutional amendment required). In August, the government is expected to collect about $172 billion in revenue, and will face about $307 billion in expenses. That will leave us with a $135 billion shortfall.
We only need to cover about about $30 billion in interest to avoid a default on our debt. It will be interesting to see who the government chooses to pay, and from whom it chooses to withhold payment.
Does Washington have a spending problem or an income problem?
Washington's spending has recently been higher as a percentage of the nation's economic output than at any time since World War II. But by the same measure, Washington's revenues are the lowest in more than 60 years.
What's at stake in the debt-limit talks: a primer
In August, the government is expected to collect about $172 billion in revenue and will face about $307 billion in bills. So, the government would have the money to pay a little more than 55% of its bills during the month. But which bills to pay? Interest on existing debt comes to just under $30 billion, Social Security checks are $50 billion, Medicare is another $50 billion, payments to military contractors for weapons, fuel and other costs comes to $32 billion and salaries for active-duty military personnel come to about $3 billion. Add in unemployment benefits ($13 billion for the month), and the government would already have run out of money without paying a single civilian employee or running any of its domestic programs, including courts, disaster relief, national parks, veterans benefits or welfare programs.
Walmart Supreme Court Sex-Bias Case: Too Big to Sue?
Some of the worlds biggest corporations were protected from bankruptcy at the end of the financial downturn by a policy dubbed “Too Big to Fail”. Now we have a ruling from the US Supreme Court that has dubbed one large corporation “Too big to Sue” that may have a significant impact on future plaintiffs ability to initiate class action suits against large corporations. (Editor's Comment: Every woman who feels discriminated against by Walmart should walk over to their superior court, and file suit against Walmart without an attorney (pro se). Once Walmart faces thousands of these individual suits, they will beg the court to convert these claims into a class action.)
The Long, Slow Death of Debt
If too much debt caused our financial crisis, getting rid of it is the solution.
Robert Reich (The Truth About the American Economy)
The U.S. economy continues to stagnate. It’s growing at the rate of 1.8 percent, which is barely growing at all. Consumer spending is down. Home prices are down. Jobs and wages are going nowhere. It’s vital that we understand the truth about the American economy.
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