Federal Pump

Debt is now around 11 trillion! that is almost double what it was when Bush left office and the jobs were not made. Unemployment is at 10%. Our Stimulus was less then a Trillian. around seven tenths of a Trillian. That leaves five Trillion spent by Obama in a year when Bush and Clinton only spent three Trillian in eight years.

Federal Pump
Originally uploaded by simonstudionyc

“from Jan. 20, 2001, to Jan. 20, 2009, the debt held by the public grew $3 trillion under Mr. Bush—to $6.3 trillion from $3.3 trillion at a time when the national economy grew as well.” “Mr. Axelrod claims the pork-laden stimulus package has been a success. But Mr. Obama told Americans that if it were passed, unemployment wouldn’t rise above 8%. It is now 10%. The president also said it would create 3.7 million jobs, 90% of which would be in the private sector. By Mr. Obama’s standards, the stimulus failed miserably.”

By comparison, from the day Mr. Obama took office last year to the end of the current fiscal year, according to the Office of Management and Budget, the debt held by the public will grow by $3.3 trillion. In 20 months, Mr. Obama will add as much debt as Mr. Bush ran up in eight years.

Mr. Obama’s spending plan approved by Congress last February calls for doubling the national debt in five years and nearly tripling it in 10.

Mr. Bush’s deficits ran an average of 3.2% of GDP, slightly above the post World War II average of 2.7%. Mr. Obama’s plan calls for deficits that will average 4.2% over the next decade.

Team Obama has been on history’s biggest spending spree, which has included a $787 billion stimulus, a $30 billion expansion of a child health-care program, and a $410 billion federal spending bill that increased nondefense discretionary spending 10% for the last half of fiscal year 2009. Mr. Obama also hiked nondefense discretionary spending another 12% for fiscal year 2010.
About Karl Rove

via intermexfreemarket.blogspot.com

Don’t make me laugh – Israel Opinion, Ynetnews

if Obama is going to threaten Israel with financing, he’d better look at his own… lol…. this is very sad. Obama still thinks he has leverage. news flash! the United States is a debtor to Israel

“As of September 2009, Israel’s foreign debt totals $28 billion. Meanwhile, the State of Israel’s foreign currency reserves total $60 billion. Most of them are invested in US government bonds. That is, the Israeli government’s foreign debt stands at -$32 billion. Or in other words, at this time we, Israelis, are financing America’s debts – and not the other way around.”

A lot of Israeli economists got a good laugh when US Special Middle East envoy George Mitchell threatened in a PBS interview last week to withhold Israel’s loan guarantees. Sever Plocker explains why.

via israelmatzav.blogspot.com

At this time too, the Israeli government is embarrassed to tell the US administration what needs to be said: Please, take back your loan guarantees. In the coming decade we probably will not need them, while you may very well need them. The Administration economists I met know this well.

People who still speak about “US economic pressure on Israel via loan guarantees” are completely disconnected from reality. Israel is now helping the US pay its deficits, and not the other way around. This is why we were laughing, the American economists and myself, when the issue of loan guarantees came up in our conversation. I was laughing happily; they were laughing somewhat sadly.

via ynetnews.com

account gap is reducing supply of dollars overseas -

IT is getting harder for governments to buy United States Treasuries because the US’s shrinking current-account gap is reducing supply of dollars overseas, a Chinese central bank official said yesterday. The comments by Zhu Min, deputy governor of the People’s Bank of China, referred to the overall situation globally, not specifically to China, the biggest foreign holder of US government bonds. via shanghaidaily.com

while it is bothersome that China is doing this and it shows that China isn’t interested in American rebounds… it still doesn’t mean that they are right. for certain we are ill, but the one asset that the Chinese don’t think about is the value of American resources… which are undervalued and once utilized could dig America out of the hole quickly. Don’t listen to your bullies unless they are completely tied to you. China is not so involved in the United States that it wouldn’t help them to see their hegemonic threat die. We should not listen to the criticism of China anymore then we would listen to Syria’s criticism. that said debt is a horrible thing, but I still believe in our country.

Posted via web from noahdavidsimon’s posterous

Chinese officials generally are very careful about commenting on the dollar and Treasuries, given that so much of its US$2.3 trillion reserves are tied to their value, and markets always watch any such comments closely for signs of any shift in how it manages its assets.

China’s State Administration of Foreign Exchange reaffirmed this month that the dollar stands secure as the anchor of the currency reserves it manages, even as the country seeks to diversify its investments.

In a discussion on the global role of the dollar, Zhu told an academic audience that it was inevitable that the dollar would continue to fall in value because Washington continued to issue more Treasuries to finance its deficit spending.

He then addressed where demand for that debt would come from.

“The United States cannot force foreign governments to increase their holdings of Treasuries,” Zhu said, according to an audio recording of his remarks. “Double the holdings? It is definitely impossible.”

“The US current account deficit is falling as residents’ savings increase, so its trade turnover is falling, which means the US is supplying fewer dollars to the rest of the world,” he added. “The world does not have so much money to buy more US Treasuries.”

China continues to see its foreign exchange reserves grow, albeit at a slower pace than in past years, due to a large trade surplus and inflows of foreign investment. They stood at US$2.3 trillion at the end of September.

Shanghai Daily | 上海日报