…most Americans are not feeling the difference, in part because those benefits have been surprisingly small. The latest estimates from economists, in fact, suggest that the pace of recovery from the global financial crisis has flagged since November, when the Fed started buying $600 billion in Treasury securities to push private dollars into investments that create jobs.
No sh*t, Sherlock. Wonder what the first clue was – the China pissing on our bonds, double digit unemployment, $6 a gallon gas or inflation in the price of basic foodstuffs?
Should it have been when we had to buy our own bonds to hide the fact that we are stone cold broke?
The BHO ass covering economists have been “surprised” so many times over the past 2 years that they should all look like Nancy Pelosi after a round of Botox.
The letter of the day is ‘D’…for DOOM!
In what can only be termed comic understatement, the New York Times calls a $900B waste of taxpayer money “disappointing”. (In the same way they refer to World War II as “that bit of mid-20th century unpleasantness”.)
America’s welfare empire. And Barack Hussein Obama rules as emperor over this domain. (Ferrara refers to a book I’ve linked in a previous book thread: Never Enough: America’s Limitless Welfare State.)
Michael Barone opines further on the essential unsustainability of most defined-benefit systems. The basic problem with these systems is that actuaries cannot yet accurately predict the future more than five or six years ahead (and sometimes not even that far), and so they rely on (usually overoptimistic) rate-of-return calculations that turn out to be wildly off the mark. But these overoptimistic projections mean that people can contribute less (or nothing at all, if it is a shared plan), which is why there is a vested interest in assuming high rate of returns. In private pension plans, bankruptcy or a bail-out is the usual end-state; for sovereigns, collapse and penury. (“We have turned into a pension plan with an Army,” is how one commentator put it.)
It bears repeating, too: We really suck at predicting the future.
Let’s all welcome Australia to the Loyal Order of the Terminally Boned! A big hand for the new guy!
Finally, a public-service message — if you operate on the distaff side of the law-and-order divide from time to time, you might want to be aware that your favorite bail bondsman may no longer accept the title on your crackhouse as collateral on your bail-bond.
[UPDATE 1]: Congressman Ryan’s budget doesn’t benefit the recliner-bound all that much, that’s true. However, I consider that a advantage, not a drawback.
[UPDATE 2]: Fareed Zakaria: “The Chinese will keep buying our debt! They have nowhere else to go!” China: “We might stop buying your debt.” Fareed Zakaria: “…aw, shit.”
[UPDATE 3]: Maxed-out America. (Via Insty.)