Truth in a Cartoon

Where the Greed is at Under Obama: Autos and Academics

John Ransom / Townhall Finance Editor

 

It’s time to reconstruct the Federal Reserve Bank, that “monster” bank that has been at the heart of all that ails the Republic for over two decades. While liberals moan about tax inversions, the truth is that it is the inverted economy, made possible by inverted policies, made possible by an inverted central bank that has turned our world upside down.

 

As year six of the “recovery” stumbles along just as previous years have, giving uneven results in employment and economic growth, we can say for sure that the big parts of corporate America—the publicly traded companies—are doing well, at least on the surface.

Thanks in part to cheap debt made possible by the Federal Reserve, corporations are borrowing record levels of money to fuel make-believe profit growth by balance sheet arbitrage: Lowering interest rates on existing debt, borrowing money to pay extra dividends and borrowing money to buy back shares. And now that they have done all they can on that front, they are using tax haven arbitrage to goose things a bit more. Companies are moving from tax-heavy jurisdictions like the United States, to places that are friendlier to corporate profits.

“Corporate debt is at record levels – at 57% of gross domestic product,” reports the Wall Street Journal, “it’s the sixth consecutive quarterly record and the highest level since 1955.”

This is exactly how it should be.

In the real world, all of us, including corporations, take conditions as they are and figure out how to succeed under those conditions. Taking advantage of low interest rates and the stark fact that the United States can’t compete with other countries on tax policy are the natural defense mechanisms corporations will use against policies purposefully pursued by politicians who lack the wisdom and foresight to act responsibly.

On Main Street things are a bit different; not quite as rosy as the view from the corporate box suites.

On Main Street the Federal Reserve is bemoaning the fact that households are loathe to parting with money. Frankly, people aren’t spending money. As I’ve noted here and elsewhere, monetary velocity is at a record low while money supply is at a record high. That means that we have more dollars than ever before yet those dollars are changing hands less frequently than ever before.

Household debt has declined—which in and of itself is not a bad thing. But it’s problematic when you are trying to turn around an economy that relies heavily on consumer spending that relies heavily on borrowing. Borrowing is up for new cars, which shouldn’t surprise anyone given the resources the government has made available to the auto industry. Yet borrowing is down for the housing industry, which shouldn’t surprise anyone given the war the administration has waged on mortgage lenders and homebuilders.

Borrowing is also up for student debt at $1.12 trillion—that’s almost twice the $650 billion represented by credit card debt. While some would argue that its better to have debt for education than for stuff purchased by credit card, the return on investment for that education remains poor with highly educated former students struggling to make student loan payments—a thing that just seems dumb.

If you are in academia or autos, you see, money is apparently not a problem. That’s official government policy.

But if you live on Main Street and wish to get a loan for something else, forget it.

That’s also official government policy.

And the central piece that makes these policies possible is the Federal Reserve Bank of the United States, jointly owned by Congress and the member banks.

The bank stopped acting as the “reserve” bank that provides liquidity in times of stress to its member banks. Instead it acts as the bank for the government, loaning money for autos and academia, but outside of Wall Street, not much else. Its reserve function is an afterthought.

There is no question that the principal failure during the financial crisis of 2008 was the failure of the central bank to be able to offer the reserve liquidity necessary to meet the crisis. The Federal Reserve was too busy doing other things to be bothered with being a reserve bank.

A real reform for both our Republic and the financial markets would be to make the Fed operate as the reserve bank for the banking system.

And to do nothing else.

Ted Cruz Introduces the Expatriate Terrorist Act

Daniel Doherty / Townhall Tipsheet

In an effort to prevent traitorous Americans from joining ISIS, Sen. Ted Cruz (R-TX) introduced legislation on Monday that would revoke their U.S. citizenships if they do.

 

Speaking on the Senate floor this afternoon, he explained why such legislation is finally necessary.

“ISIS is a study in oppression and brutality that is conducting ethnic cleansing against religious minorities in the region, that is targeting and persecuting Christians, and that is attempting to subject the local population to the strictest forms of Sharia Law,” he said. “And ISIS has gruesomely murdered U.S. civilians and, indeed, journalists on the public stage."

Washington lawmakers must therefore take two forms of action to protect Americans. First, he argued, securing all U.S. borders.

“It is beyond time for us to secure our borders,” he declared. “Representing the state of Texas, which has a border nearly 2,000 miles long, I know firsthand just how unsecure the border is right now."

"This week of all weeks with the anniversary of the September 11^th attacks upon us, we can have no illusions that terrorists won’t try to make good on their specific threats to attack America," he continued. "And as long as our border isn’t secure, we’re making it far too easy for the terrorists to carry through on those promises.”

Secondly, he said, Washington lawmakers "should take commonsense steps to make fighting for or supporting ISIS a [citizenship-stripping offense].

“That is why I have today filed legislation which would amend the existing statue governing renunciation of United States citizenship," he announced.

“[Defeating ISIS] requires clear, decisive, unified action,” he continued. “And it is my hope that all of us will come together supporting such action.”

Al Qaeda has the 11 Missing Libya Jetliners
Pamela Geller / Atlas Shrugs

Mr. President, the JV team is ….. in the big leagues. But he knows that. He has always known that.

It’s mostly likely why he has decided to give a speech this week on the Islamic State (or in his deliberately confusing lexicon, ISIL). It’s a CYA speech in the event of an attack.

I have been writing about ISIS for two years — and we’re supposed to believe that the President didn’t know? Regular Atlas readers are not surprised by the rise of the global jihad. I have, for years, documented the growing threat.

The media is shocked! shocked, I tell ya. Well, maybe they ought to start cribbing their news items from Atlas. At least that way they would be relevant.

There are new worries about the anniversary of 9/11. But even if it isn’t 9/11, the jihadists can make any day of infamy. 11/11 or 12/12 — a savage Muslim attack on any day makes it another 9/11.

Al Qaeda Has Control Of Missing Planes In Libya,” FOX Radio, September 8, 2014

Eleven commercial jets have reportedly been stolen in recent weeks in Libya, and Western intelligence agencies have begun warning they could be used in terror attacks on the anniversary of the 9/11 attacks. Bill Gertz, Senior Editor of the Washington Free Beacon said he has spoken with intelligence officials who told him this poses a real danger and the CIA is actively trying to locate them. Gertz told John that Al Qaeda has control of the commercial planes which could be used for an attack on US...

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Islamic State fighters using US arms

Robert Spencer / Jihad Watch

 

Obama envisions the Free Syrian Army as providing combat troops to fight the Islamic State. But the Free Syrian Army is either giving its arms to the Islamic State, or cannot prevent it from capturing them.

“Islamic State fighters using US arms – Report,” AFP, September 8, 2014 (thanks to Twostellas):

Islamic State fighters appear to be using captured US military issue arms and weapons supplied to moderate rebels in Syria by Saudi Arabia, according to a report published on Monday.

The study by the London-based small-arms research organisation Conflict Armament Research documented weapons seized by Kurdish forces from militants in Iraq and Syria over a 10-day period in July.

The report said the jihadists disposed of “significant quantities” of US-made small arms including M16 assault rifles and included photos showing the markings “Property of US Govt”.

It also found that anti-tank rockets used by IS in Syria were “identical to M79 rockets transferred by Saudi Arabia to forces operating under the Free Syrian Army umbrella in 2013″.

The rockets were made in the then Yugoslavia in the 1980s.

Islamic State is believed to have seized large quantities of weapons from Syrian military installations it has captured, as well as arms supplied by the United States to the Iraqi army after it swept through northern Iraq in recent weeks.

Op-ed:
America's Kids are getting Sick and 'They' Know Exactly Why
By: Diane Sori

"But this one, this particular Enterovirus 68, is very rare and they have no idea why it showed up this year."  
- ABC News Chief Health and Medical Editor Dr. Richard Besser

NO idea why...I don't think so as 'they' know exactly why our kids are getting sick...as in its just another little bit of  'anything but happiness' from our borders NOT being secured...period.

And so it seems that soon after the deluge of pint-sized criminals crossed ILLEGALLY into our country because of those unsecured borders...and with them still coming but to a somewhat lesser degree...our kids started to get sick...very very sick. And it has been well documented that many of those pint-sized criminals were sick when they crossed with what 'they' tried to pass off as NOTHING but mere 'sniffles.' But isn't it more than a bit coincidental that 'suddenly' an extremely rare respiratory virus started hitting our kids...hitting them hard all across the country...hitting them in the very states where Barack HUSSEIN Obama dumped these thousands of pint-size criminals. And our kids are getting sick because they have NO immunities to something they have NEVER been exposed to before.

Now, I do NOT want to hear from those who say that kids get sick at the start of every school year because we all know that is indeed true but...and here is where it deviates from the norm...the common cold is what starts the school year off with a whimper and a sneeze...the school year does NOT start off with a virus so severe as to cause what's turning into an ever-expanding and in some cases life-threatening epidemic. The school year in this country does NOT start off with a virus so dangerous that kids are being hospitalized with a few even dying...and it surely does NOT start off with a virus so dangerous that it's being recommended that if your child has asthma or any other serious respiratory issues that they stay home so as NOT to be exposed...and please know that this is a virus rarely seen in this country.

And the so-called 'experts' claim they do NOT know where this virus came from or why all of a sudden it is showing up here now, but that is to put it bluntly a LIE for logic itself dictates exactly where it came from and exactly who brought it in. And logic also dictates exactly whose fault it is that this dangerous virus is here in the first place...as in can you say Barack HUSSEIN Obama and our unsecured 'everyone is welcome if you vote Democratic' borders.

And this little bit of nastiness has already sickened more than a thousand children in 11 states (as of this writing) and if CDC predictions are correct is more than likely to become a nationwide epidemic. And while experts suspect the outbreak is caused by a respiratory virus called human enterovirus 68 (EV-D68)...a virus related to the rhinovirus that causes the common cold. But this virus is anything but the common cold as the common cold does NOT send children to the hospital gasping for breath. And while enteroviruses are indeed very common...causing between 10 and 15 million illnesses in the U.S. each year...the fact is that this particular enterovirus is NOT common in this country but is very common in poverty stricken undeveloped countries...countries like those where these pint-sized criminals and oh so ILLEGAL older children came from.

EV-D68 was first detected in the U.S. in California in 1962, but less than 100 cases have been confirmed anywhere in this country in the 52 years since then, but isn't it odd that now there are thousands of children infected with their numbers growing daily. Again...do I really need to say more as to why all of a sudden this virus is here now...simply connect the dots and know that the picture isn't pretty.

Eleven states so far...Missouri, Kansas, Illinois, Kentucky, Iowa, Colorado, Ohio, Oklahoma, North Carolina, Wisconsin, and Georgia, have all reported outbreaks of this particularly nasty virus and are asking the CDC for help. And again, all these states have schools where the ILLEGAL children have been enrolled and entered into the student population...and now all 50 states (got that Obama 50 NOT 57 states...57 is the number of islamic states but you know that) are on alert as hospitals across the country are seeing a spike in the number of pediatric patients being admitted to the emergency room.

And with doctors NOT all agreeing on how this particular virus is spread...and with children ranging in age from six weeks to 16 years being affected...it becomes quite clear that the virus is originating in the schools where the ILLEGAL children are enrolled...where the ILLEGAL children have been dumped...where the ILLEGAL children are the carriers who get our kids sick who then in turn bring the virus home to infect both their younger and older siblings...and the cycle of illness is complete.

And to show just how serious this epidemic is, Children's Hospital Colorado in Denver, reported that between August 18th and September 4th...in a bit more than two short weeks...doctors saw more than 900 pediatric patients with symptoms of EV-D68 in the emergency room. Of those who came in, 86 were admitted into the hospital with a handful ending up in the intensive care unit.

Starting with a simple runny nose this virus rapidly progresses into coughing, wheezing, and trouble breathing even for kids NEVER having a history of wheezing...even for kids NOT being asthmatic. And these kids suddenly are NOT only wheezing but gasping for every breath as they are rushed to the hospital with many ending up with a breathing tube down their throats...intubated and on a ventilator...because they simply cannot breath on their own.

And guess what...there's NO vaccine for EV-D68 and NO special antiviral medication to treat it...it has to run its course with palliative supportive treatment, and with fingers crossed to hope for the best.

And the bottom line is that EV-D68 has most assuredly been brought into this country by the very pint-sized criminals Obama has allowed to stay...NO matter what he or 'they' say.

So where do we go from here...what do we do to stop our children from getting sick...the usual things are being touted like our kids should wash their hands often with soap and water...like that will ever happen...that our kids should avoid touching their eyes, nose, and mouth with unwashed hands...like that too will ever happen... and that our kids should avoid sharing or trading lunches in school...yeah right. But I have a better way to keep America's children safe from EV-D68 along with all the other assorted 'nasties' these pint-sized criminals are bringing into our country... round up all the ILLEGAL children Obama disbursed throughout our country (and he knows exactly where they all are) and send them back...deport them...to whence they came for our children's health...maybe even their lives...depends on it.

And then 'they' and Obama can sort it all out amongst themselves for deliberately putting America's children in danger is one red line 'they' and Obama best dare NOT cross.