Use Iceland As An Example

Surely everybody remembers the economic crisis of 2008………can you remember all the debate of whether to let the thieving banks to go bust of not?  There was also a debate on whether the CEOs of said banks should be held responsible…….how about the term “too big too fail”?

I have written about what Iceland decided to do in the past……and today it looks like their plan was far superior to any plan we had here in the states……

Maybe we should take a good long look at what Iceland did…….and learn from their example…..


Three charts that show Iceland’s economy recovered after it imprisoned bankers and let banks go bust – instead of bailing them out – Business News – Business – The Independent.

Will The Country Suffer Depression?

The markets go up…..the markets go down……a continuous yo-yo ride……

I know….very few Americans want to talk or learned about economics… is just all too hard.

We all have a fleeting knowledge of what happened in 1929, right?  But our minds are fresher in the events in 2008 when the markets dropped like a lead toilet in Lake Michigan.

But since that day the markets have steadily gone up and up and up……seemingly without any possibility of a return to the days of losing funds……but is there a possibility that we could see another loss of funds and value………..

A CIA analyst known for his dire economic predictions is speaking up again, warning that the next Great Depression may be right around the corner. Jim Rickards, a “financial threat and asymmetric warfare adviser” for the CIA, tells Money Morning that Americans should be preparing for a $100 trillion financial catastrophe. “Everybody knows we have a dangerous level of debt,” he says. “Everybody knows the Fed has recklessly printed trillions of dollars. … But all signs are now flashing bright red that our chickens are about to come home to roost.” Another reason for gloom: According to Rickards, the so-called Misery Index maintained by the Federal Reserve contains far worse data than most people believe.

The Misery Index adds the true unemployment rate with the true inflation rate, but Rickards contends that the Fed has altered the index’s calculations in order to hide the truth—that “the Misery Index has reached more dangerous levels than we saw prior to the Great Depression,” he says. “This is a signal of a complex system that’s about to collapse.” His prediction? A “70% stock market crash” followed by a 25-year depression, possibly sparked by a “major credit collapse” in China, he tells Reuters. His advice? Invest in “hard assets” like railroads, coal, wheat, or gold. Again, he’s not known for mild predictions:

Whatcha think?  Is this guy onto something or is he just giving Americans what they crave….a good dose of fear?

Income Inequality

It seems that the more the term is used the more it is becoming the latest buzz term….a dog whistle for the Left…..the Left?  I am so tired of that term!  There is NO one in Washington that is on the Left.  At best the ass clowns are solidly in the middle….with that said I will move on……

For the last couple of months the term “income inequality” has been batted around and used for talking points……..but is any of this going to do any good?  Or is it just something to talk about until a bigger news story breaks?

Any way….the prez has jumped onto the subject……

President Obama raised this issue yesterday in a speech to a progressive audience so I think it’s a worthy topic for discussion. In the President’s view, income inequality and disparity are issues which only the government can “solve” by some sort of redistribution scheme. However, the President offered no specifics, he only encouraged congress to […]

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As an old hippie commie pinko and about a hundred other adjective that people used in the past to describe me and people like me………I have been bitching about income inequality for decades…..usually to deaf ears until recently…….there seems to be a growing concern over something that has plagued American workers for years……but what if anything will be the answer to solving the problem?  I have a plan but NO one will like it…….and then I will once again be bombarded with the insults on my political beliefs…, huh?

2012 Election Issues #4–Europe Economic Crisis

All the crap that people bitch about and this one is NO where to be found……of course, a couple politicos have compared the US to Greece, most notably some on the pseudo-news channel that shall remain un-named… problem is that Europe and its problems will eventually come to our shores and roost and yet neither candidate has mentioned except in passing and saying one candidate sucks…….maybe these dorks need to tell the American people what is awaiting the US…….

But it does matter….even if you ignore it… still matters….and why is that?

AP has a beautiful explanation——-

Europe buys 22 percent of the goods America exports. U.S. companies have invested heavily in Europe. So any economic slowdown in Europe dents U.S. exports and corporate profits. But the biggest fear is that a European financial crisis will flare up and move west across the Atlantic — the way Wall Street’s 2008 crisis moved east to Europe — with dire consequences for the U.S. economy.

Europeans are struggling to repair a system that was flawed from the start. The euro, introduced in 1999, makes it easier to do business across Europe; no more changing francs to deutschemarks when French and German companies do business. But the common currency joined countries with vastly different economies and political cultures — and each got to keep running its own budget. During the 2000s, banks were willing to overlook the differences and lend at low rates to countries like Greece with dubious records of fiscal discipline. Lenders knew they’d be repaid in euros, not local currencies that could be devalued by inflation. Greece and other countries took advantage of the easy money. Their debts proved crushing after the recession hit.

To fix their finances, European countries have cut government spending and raised taxes. Greece, Portugal and Ireland had to tighten their belts to qualify for bailouts. But the austerity has taken a toll. Europe is sliding into recession. The pressure might force Greece to abandon the euro and revive its old currency, the drachma. Other countries — notably Italy and Spain — might follow Greece out of the eurozone.

Abandoning the euro would free countries from an economic straitjacket. When they joined the eurozone, they surrendered control of interest rates to the European Central Bank, so they cannot cut their own rates to boost their economies. Nor can they push down their currencies to give their exporters a price advantage and trade their way out of trouble.

But breaking up the eurozone would be dangerous. Borrowers in countries that left the eurozone would struggle to produce enough money in their weak local currencies to repay old debts denominated in much stronger euros. As debts soured, Europe’s banking system would freeze. Its economy would follow. The pain would spread. Worried about a crackup, investors are demanding higher rates on Italian and Spanish debt, driving those countries’ borrowing costs to unsustainable levels.

The Euro-Zone problems are our problems…..we will suffer as much as the countries of the EU if the wall cracks and falls in the economy’s lap….but yet it is not important enough for either candidate to try to explain the situation to the American people……