136. Obama acting lame, or is

June 29, 2009 § Leave a comment

On finance, health, education, energy  and climate as well as redressing the dmage done by income concentration from regan t Bush 2,  Obama needs to fight fierce. Is he biding his time or losing his advantage? The stylle of compromise tends to set the momentum of this admin which may be difficult toc hange. The expectation now is, compromise on everything.

A White House that is more interested in promotion than in product development has another great drawback: it squanders talent. Mr Obama has impeccable taste in advisers: he has scooped up many of the country’s pre-eminent experts in almost every area of public policy. One wonders why. On the main domestic issues, they are not designing policy; they are working the phones, drumming up support for bills they would be deploring if they were not in the administration. Apart from anything else, this seems cruel. Mr President, examine your conscience and set your experts free.

The greatest waste of talent in all this, however, is that of Mr Obama himself. Congress offers change without change – a green economy built on cheap coal and petrol; a healthcare transformation that asks nobody to pay more taxes or behave any differently – because that is what voters want. Is it too much to ask that Mr Obama should tell voters the truth? I think he could do it. He has everything it takes to be a strong president. He is choosing to be a weak one.

via FT.com / Columnists / Clive Crook – Obama is choosing to be weak.

135. stabilization?

June 29, 2009 § Leave a comment

I’ve suspected stabilization, but at a lower level of employment, and a lower level of the economy. GDP down by say three percent from the high, unemployment up by 7 percent. That means that the richer can maintain the same level of income, while the poorer take the hit. This is the new reality, the new stabilization.

From the Financial Times: Romer upbeat on US economy

Ms Romer, chairman of the US president’s council of economic advisers, told the Financial Times in an interview she was “more optimistic” that the economy was close to stabilisation.

via Calculated Risk.

134. Economists View

June 29, 2009 § Leave a comment

This is just terrible. Let’s decrease benfits for the bottom in order to not tax the top. Martin Feldstein writes

It would be wrong for the Obama administration and Congress to reduce the fiscal stimulus in 2009 or 2010, since there is no clear evidence of a sustained upturn. But it would be equally wrong to allow the national debt to double to 80 per cent of GDP a decade from now. Increasing taxes even more than proposed would weaken demand in the near term and hurt economic incentives in the long run. The fiscal deficit should therefore be reduced by curtailing the increases in social spending that the president advocated in his election campaign.

Higher braket taxpapers do not cut demand. It is ordinary people lower down who spend what they get and with more income and benefits keep demand higher. The hidden fact in the paragraph is whath  he means by taxes. Is this lying, bad intent? Tthe workings of a mind can be strange.

via Economists View.

133. Carlota Perez Official Website

June 26, 2009 § Leave a comment

I’ve mentioned her before. The key is she says financial services are eating up so much profit that not enough is available for the nextphase of ubiquitous computing, the phasw where returns on invesment at the whole of society really take off. But now stunted.

TECHNOLOGICAL REVOLUTIONS

AND FINANCIAL CAPITAL:

The Dynamics of Bubbles and Golden Ages

Carlota Perez

via CARLOTA PEREZ.ORG – Carlota Perez Official Website.

132. China stimulus package.

June 26, 2009 § Leave a comment

This is a warning: stimulus package distribution controlled by large enterprises for already existing projects. It will not reach small business. China is an example, and the US is probabaly an example.

The major response to declining growth was the announcement of a 4 trillion yuan (US$586 billion) stimulus package in November 2008 to be spent over the next two years. As usual, provincial authorities will be the main entities that effectively oversee any stimulus spending. After the announcement was made, within a fortnight, provincial authorities submitted proposals worth approximately 10 trillion yuan.

For example, investment proposals worth 3 trillion yuan from Yunnan province and worth 2.3 trillion yuan from Guangdong province were received. Significantly, these proposals overwhelmingly consisted of big-ticket fixed-investment projects. The amount provincial authorities proposed to allocate to poverty alleviation and social welfare initiatives was small.

via Asia Times Online :: China News, China Business News, Taiwan and Hong Kong News and Business..

131. and Debt Cancellation for Haiti

June 26, 2009 § Leave a comment

124. More. Privatiztion. We know what that means.

The IMF and World Bank’s debt relief program requires countries to first implement a series of harmful economic reforms such as privatization of basic services before obtaining debt cancellation. Haiti was admitted into the IMF and World Bank’s program (or HIPC, Heavily Indebted Poor Countries, Initiative) in April. The government is now committed to undergo a minimum of two years of structural reform before reaching “completion point” in the program and being granted debt relief.

via HaitiAnalysis.com IDB Debt Cancellation for Haiti .

130. IDB Debt Cancellation for Haiti

June 26, 2009 § Leave a comment

This is a major part of the problem. US cmmercail banks hold much of the positive paper.

In Haiti, more than half the country’s debt was contracted by the Duvalier family dictatorship (1957-1986). Harvard economist Michael Kremer reports that Jean-Claude Duvalier stole $900 million from the Haitian people. According to a 2006 UN sponsored census, half of Haiti’s population was born after the Duvalier era and forced to carry this debt burden from birth. The Haitian people were not consulted about these loans, and received little benefit from them. But now they are forced to repay them. It is unjust that Haiti is being asked to comply with economic policies such as privatization of basic services or increased trade liberalization before obtaining full debt cancellation.

via HaitiAnalysis.com IDB Debt Cancellation for Haiti .

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