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Moody’s Warns for Fourth Time: US Credit at Risk

January 28th, 2011 No comments
Alfred E. Neuman, "What, Me Worry?"

What, Me Worry?

WASHINGTON: Today Moody’s warned the US of an impending credit downgrade due to the country’s worsening debt situation.

Moody’s Investors Service warned that lack of U.S. government action on the budget deficit increases the likelihood of a negative outlook on the country’s top AAA credit rating.

The Moody’s report, which came hours after a downgrade of Japan by Standard & Poor’s and an IMF warning on growing budget deficits in both countries, reiterated previous comments made by the agency late last year.

Moody’s had said in December that the extension of Bush-era tax cuts would add to the likelihood of a negative outlook on the U.S. rating in the next two years.

Lower debt ratings typically push up a country’s borrowing costs. A negative outlook makes a rating downgrade more likely in the next 12 to 18 months. MoneyNews.com

The NIP has written multiple times regarding previous warnings from Moody’s. The US Ignoring Moody’s is similar to a homeowner ignoring calls from their mortgage banker. Eventually credit ratings our downgraded, interest rates go up and penalties are instituted.

We are seeing the result already. During Chinese President Hu Jintao’s visit to the US Obama hosted an unprecedented state dinner for the president of a country that has one of the worst human rights abuse record. How long until the Chinese demand higher interest rates to cover our increasingly worthless dollar?

This is just the beginning of the pain that awaits as our Congress and President blithely spend us into oblivion.

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US National Debt Passes $14 Trillion

January 3rd, 2011 No comments

National Debt Passes $14 trillionThe latest posting today of the National Debt shows it has topped $14 trillion for the first time.

The U.S. Treasury website today reported that as of last Friday, the last day of 2010, the National Debt stood at $14,025,215,218,708.52.

It took just 7 months for the National Debt to increase from $13 trillion on June 1, 2010 to $14 trillion on Dec. 31. It also means the debt is fast approaching the statutory ceiling $14.294 trillion set by Congress and signed into law by President Obama last February.

The NIP has written multiple times regarding previous warnings from Moody’s. It appears that this administration is all to happy to push our economy into economic collapse. If you think this doesn’t matter to you, you are sorely mistaken.

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French Protest Raising Retirement Age to 62

October 12th, 2010 No comments

French Protest Raising of Retirement AgeFRANCE: Today over one million French took to the streets protesting the government’s plans to raise the retirement age from 60 to 62. Tens of thousands Parisians protested the “cruelty” of making 60 year-olds work two more years before retirement. The Associated Press reports that the majority of French are against government attempts to reform their retirement system.

After years of socialist giveaways European countries are struggling with the impossible task of paying for programs they cannot afford. Politicians there for years have promised outlandish benefits with no way to pay for them in an effort to be reelected. Faced with impossible costs the French are trying to make adjustments to keep their country solvent. The resultant protests only help destabilize a volatile situation.

This is the model that Obama and Congressional Democrats have been following for years: promise the moon, get reelected, and leave it to future generations to pay for. It isn’t working in France, and voters are rejecting it here in the US. Meanwhile Pelosi and Obama are still singing the same socialist song. It’s time to teach them a new tune.

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Steve Wynn of Wynn Hotels Raises Warning Voice

June 27th, 2010 1 comment

James SimpsonJAMES SIMPSON: This is better than Rick Santelli’s rant. Here is a successful businessman giving us the reality of the situation. In an interview with CNBC, Steve Wynn, owner of Wynn hotels, describes this administration and Congress’s policies as an explanation for his decision to move some of his operation overseas. As he says repeatedly, it is a combination of the insane spending and regulatory policies of the Democrats and the complete uncertainty this creates for business.

As I have said, repeatedly, this is a deliberate strategy. Nothing discourages business more than uncertainty, and the Obama administration has introduced a climate of uncertainty in this country that is unprecedented in our history. Even during war, no American ever seriously believed anyone would come along and attempt to change the fundamental structure of our society. But it is happening now before our eyes!

The corruption of this administration, the fraud occupying the White House and the revolting, despicable animals running Congress, defy description. They are corrupt, subhuman slugs. Watch this four minute clip. Right on the money!

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Congress Ignores National Debt Crisis, Increases by 8%

June 17th, 2010 No comments
Alfred E. Neuman, "What, Me Worry?"

What, Me Worry?

WASHINGTON: The Treasury Department stated that the US Debt reached $13 trillion for the first time in history on June 1st. Just six months ago the debt topped $12 trillion for the first time. The increase in just 6 months was 8%.

At this rate our debt will reach $14 trillion by the end of the year, increasing the national debt by 16% in one year. The US GDP was only $14 trillion in 2009, our debt soon will exceed the entire economy of this once great nation and the rate of increase is accelerating.

You or I could never dig ourselves out of this kind of debt, only the government can, and they will do it by inflating the currency. Back in November the NIP has warned about the dire consequences that await us if we pursue this course. This should give concern to every American. Our elected representatives need to be sent packing. Faced with our massive deficit, this Congress apparently subscribes to the Alfred E. Neuman school of philosophy, “What, Me Worry?” At the NIP we too are beginning to see Mr. Neuman as a viable candidate. His campaign slogan of 1956 still rings true today, “You could do worse… and you always have!”

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Obama Asks for $50 Billion to Bail Out States for “Emergency”

June 14th, 2010 1 comment

Obama Redistributes Wealth of AmericaWASHINGTON: Saturday found Obama once more pleading for additional “Emergency” money. When we at the NIP saw the headlines we thought good for him, he is pleading for money to help the embattled gulf coast. We almost didn’t pursue the story further. But no, this is not oil spill related, this is bailout money to prop up insolvent state and local governments:

President Obama urged reluctant lawmakers Saturday to quickly approve nearly $50 billion in emergency aid to state and local governments, saying the money is needed to avoid “massive layoffs of teachers, police and firefighters” and to support the still-fragile economic recovery.

In a letter to congressional leaders, Obama defended last year’s huge economic stimulus package, saying it helped break the economy’s free fall, but argued that more spending is urgent and unavoidable. “We must take these emergency measures,” he wrote in an appeal aimed primarily at members of his own party. Lori Montgomery, Washington Post

So let’s get this straight: influence-peddling local politicians drive their local and state governments bankrupt by pushing social programs and wacky environmental projects. Faced with deficits they seek to pay for their social programs by cutting education and essential services. Then faced with this “crisis” they created by mismanagement they seek money from the Obama administration.

So financially conservative states now need to fund irresponsible states. Iowans and Texans need to send their money to help politicians prop up their administrations in California, Chicago and Detroit. This fits in well with the Progressive aim to enact social and economic justice. It’s way past time for taxpayers to quit putting up with this nonsense.

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May 6th Crash Not a Result of a Trading Glitch

NEW YORK: Yesterday’s record intraday crash in the stock market was not a result of trading error (see video below). There are enormous pressures on our financial markets due to profligate spending by out of control governments. Greece is just the first to fall due to  weakness in the Greek economy.

The US is not immune. Moody’s has issued three warnings to the US which could have severe repercussions if not heeded. The US has been able to stay behind Europe in the race to financial and social instability, largely because many of the socialist programs have not been implemented here as widely as in the EU, at least until now. However, the Obama administration is pushing full steam ahead in an effort to force the US to follow Europe’s bad example, an example we don’t want to follow.

It is our free market that has kept us out of trouble until now. Our productivity and hard work far outstrips Europe’s:

Let’s get real. There’s almost no comparison between the U.S. and Greece or other failed European states. By almost any measure, the United States has outperformed Europe for decades.

This is especially true when it comes to productivity, a fact that only now seems to be dawning on the people of Greece if not Europe in general. We have noted with interest that, from 2002 to 2008 alone, American productivity grew 28% — a rate 50% higher than among the 10 biggest economies in Europe.

From 1980 to 2009, real GDP per person — the best broad measure of both productivity and standard of living — grew 6% faster in the U.S. than in Europe. Sounds like a small difference, but it isn’t. In 1980, the average American produced just $4,500 more in GDP, after adjusting for inflation, than the average European. Today, the gap is $8,236 — and growing wider. Investor’s Business Daily

Yesterday’s intraday crash of 9% in just minutes set a record. As always there is always a rush to blame computer trading or some other glitch, anything to draw attention away from the underlying instability in the markets. Tom O’Brien of TFNN.com (below) makes clear that this was no trading fluke.

It’s time for hard-working, tax-paying Americans to wake up and fundamentally transform America ourselves. We need to throw out the career politicians who steal our money to buy votes from those who want a free ride at our expense.

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