finance

Chris Knight's avatar

I knew it!  I just knew that I hadn’t imagined this.  A cartoon from 37 years that I saw only once ago and I still remember it!

Around the mid-Eighties there was an animated series based on the beloved Berenstain Bears children’s books.  The show ran on Saturday mornings on CBS.  It was pretty good as I seem to recall.  And often quite humorous.

Well, the other day one of the episodes sprang to mind as I was reading the news about the latest attempt to avoid a government shutdown.  It involved the Bear kiddies learning all about money.  How those little green pieces of paper don’t have value on their own.  Instead they must be backed up by something with real tangible worth.  In the bears’ world this happens to be the purest honey in existence.  Without that backing, as the kids’ father puts it there would be total ...

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Chris Knight's avatar

According to the Tax Justice Network based out of Great Britain, the most secretive financial jurisdiction on Earth is actually… the state of Delaware.

Yeah, that Delaware: on the eastern seaboard of these United States! $2.6 trillion was deposited in this country by non-resident citizens and corporations in 2007, with Delaware leading the way…

The survey of laws, practices and size of inflows in 60 jurisdictions found Delaware coming in first, followed by Luxembourg and then Switzerland. The Cayman Islands and the United Kingdom round out the top five.

“While the U.S. has been jumping up and down and saying ‘Aha, bad, wicked Swiss banks,’ the U.S. is doing exactly the same things as far as non-resident bank account holders,” said Sarah Lewis, executive director of the group, based in the U.K.

Switzerland has been the poster child for financial secrecy over the past year. The United State sued Swiss

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Chris Knight's avatar

The guys at Flopping Aces have gone through the 1,990 page abomination that House Speaker Nancy Pelosi has introduced as the House of Representatives(?) version of the health scare “reform” bill.

Yah you read that right: one thousand, nine hundred and ninety pages.

It’s calculated to cost $1.28 trillion.

So what’s in this… thing?

Abortion funding.

The so-called “death panels” that we have been told repeatedly were just a figment of some people’s imagination.

And… get a load of this one:

“Pelsoi inserted a provision which would punish state governments who attempt any kind of law suit abuse reform that would impact lawyers fees.”

What. The. Hell. ???

So it’s not enough that Congress has decreed that pharmaceutical firms are to be protected from lawsuits stemming from any injury or death that even untested vaccines might cause. Now our “lawmakers” are shielding trial lawyers from tort reform… ...

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Chris Knight's avatar

That’s what Jake Tapper at ABC News has reckoned. Figuring that the Obama administration is boating of anywhere between 640,000 and 1 million jobs saved or created because of the “stimulus” package, and that $159 billion was allocated by Congress and President Obama for such purpose, then the most conservative estimate has each rescued job worth $160,000.

The White House economists are calling these figures “calculator abuse”. Wish I’d have thought of that one during those many times that I struggled with algebra in eighth grade!

Pssst… hey, President Obama. Wanna really use the government to create jobs and bolster the economy? It’s very very simple:

CUT TAXES
AND
CUT SPENDING!!!

NO country in history has ever spent itself into prosperity. America can not possibly be any different....

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Chris Knight's avatar

‘Tis painfully ironic that these observations are being made in Pravda, of all places. Stanislav Mishin writes…

It can be safely said, that the last time a great nation destroyed itself through its own hubris and economic folly was the early Soviet Union (though in the end the late Soviet Union still died by the economic hand). Now we get the opportunity to watch the Americans do the exact same thing to themselves. The most amazing thing of course, is that they are just repeating the failed mistakes of the past. One would expect their fellow travelers in suicide, the British, to have spoken up by now, but unfortunately for the British, their education system is now even more of a joke than that of the Americans…

(snip)

That brings us to Cap and Trade. Never in the history of humanity has a more idiotic plan been put forward

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Chris Knight's avatar

Bev Perdue – who for as long as she is Governor of North Carolina will be referred to on this blog as “WORST GOVERNOR EVER!” – is returning $38 million to the school construction proceeds from the North Carolina Education Lottery, which she raided back in February

(However there’s still $50 million from the lottery’s reserve funds that Perdue isn’t paying back yet).

Does Bev Perdue have any clue at all about the mess she has caused for this state’s public schools? Probably not. Here in Rockingham County plans to build four much-needed new schools were thrown into turmoil because the construction funds earmarked from the lottery were swiped by Perdue so that she could play games with the state’s budget problems. Many other school systems across North Carolina were also hit by Perdue’s monetary mayhem.

I would imagine that in the greater scheme of things, Perdue’s unwise fiscal ...

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Chris Knight's avatar

That’s what John Kanas of BankUnited is now saying. Kanas believes that a thousand banks – mostly small, privately-run institutions – will go belly-up during the next two years.

Ordinarily I’m automatically inclined to disregard this kind of statement as extreme alarmism (like how I never take any “climate experts” from the United Nations seriously). But given the number of banks and more than a few of those being larger ones that have gone down in just the past year, I do have to think this is something that merits serious credence.

But hey: if worse comes to worst, I guess the Federal Reserve only has to inject another five trillion dollars or so into the economy and thinks will be fixed. Right? Right?!?...

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Chris Knight's avatar

At long last, some in Washington are saying that it’s time to have a national sales tax, which is something that I’ve been advocating for years.

The problem is that these same people want the sales tax in addition to the pre-existing income tax.

Common around the world, including in Europe, such a tax — called a value-added tax, or VAT — has not been seriously considered in the United States. But advocates say few other options can generate the kind of money the nation will need to avert fiscal calamity.

At a White House conference earlier this year on the government’s budget problems, a roomful of tax experts pleaded with Treasury Secretary Timothy F. Geithner to consider a VAT. A recent flurry of books and papers on the subject is attracting genuine, if furtive, interest in Congress. And last month, after wrestling with the White House over the

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Chris Knight's avatar

If the United States keeps “spending a bunch of money we don’t have”, it faces a collapse of its economy much like what has happened in Zimbabwe, South Carolina Governor Mark Sanford predicts.

In case you haven’t heard, the financial hyper-inflation which has rocked Zimbabwe has led that country to issue a one trillion dollar bill as part of its currency. For one of those legal tender notes, you can currently buy a hamburger or two.

Sanford gets what’s really going on. Too bad there doesn’t seem to be many other elected officials who are likewise calling for fiscal sobriety right now....

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