Consider These Things..
July 28, 2011 § Leave a comment
But first, as they say on programmed radio:—
Congratulations to Chris Burke whose history of NZ pop music made him winner of the top Book of the Year Award here. He has been a significant contributor to radio music commentary and production over the years and won’t mind at all my saying on behalf OF also, well done mate! Adding of course: More.. more..
OF has a knack of saying things that strike chords, as it were. Instanced the other day with austerity is bad because it is worsening the debt-to-GDP ratio. At the time a rather obvious anticipation he observed yet met with surprise by others he had assumed held the same view. What were they thinking..? Well, whatever, divers adjustments have been taking place since in the markets.. not least that US corporate stock were overpriced and better balance twixt them and other securities being made.
Which brings me to what few, if any, commentators ought be discussing. Rather than the simple and bland terms of public spending cuts and/or tax increases. The matter of default risk and near-so consequences.
Does not Ratings Agency(To Market, to Market, to buy a fat hen) come to impose an alternative term to tax in downgrading a nation’s credit worthiness. Resulting in increased interest payments. Given that banks are in the business of debt then such methods are readily seen as banks-and/or-investor serving. Whereupon increased incomes or takings are to the advantage of lenders. And I for one thus see why the so-called markets remain “calm” in this matter. Hardball is theirs to own. Though the same cannot be said for Washington politicians’ and officials’ responsibility. Who despite appearances and any amount of denials are effectively playing the game for them via delays.
Of further concern perhaps the fact of public expense “savings” from interest payments against debt. It appears that loss of these sizeable sovereign debt rewards to large investors and banks hath brought forth so-called “inflationary” pressures and stampeding price rises for ordinary folks in groceries, fuels and foodstuffs. Regardless( saith bankmind ) what is lost on the swings can be gained on the roundabouts. Wot!
Ratings Agencies have been before Congress I’m told. And so, according to Reuters News Agency, is due a report on service contracts with the private sector in the wars in Iraq and Afghanistan. One fact contained therein — $34 billion WASTED.
President Obama and Senate Majority leader Reid for the Dems want out of the wars and waste, but the Congress critter leader Boehner calls their initiative “gimmicks”. Sure, the Budget Office finds these planners both wanting in the calculation department, but gimmicks I don’t think. Do you?
And if you were a US taxpayer finding your dough skewed to tax-like debt impositions because some republicans gotta double whammy of personality and behavioral disorders, then I know whose short term in office I’d pitch for next time around.
Now because I see the cellophane sandwich wrapper approaching I’ll finish this with a thin slice of our** daily bread.
To wit, a somewhat embarrassing revelation for Morgan of UK tabloids fame, now CNN’s face of the infamous as set out by Huffington Post and perhaps a further aid memoire for **Saturday** with Kim whose promo today mentioned I believe tabloids among the troubled.. Extra Extra, Read All About It!