We're asking others to sacrifice for our 'stimulus.'
By PETER SCHIFF
Barack Obama has spoken often of sacrifice. And as recently as a week ago, he said that to stave off the deepening recession Americans should be prepared to face "trillion dollar deficits for years to come."
But apart from a stirring call for volunteerism in his inaugural address, the only specific sacrifices the president has outlined thus far include lower taxes, millions of federally funded jobs, expanded corporate bailouts, and direct stimulus checks to consumers. Could this be described as sacrificial?
What he might have said was that the nations funding the majority of America's public debt -- most notably the Chinese, Japanese and the Saudis -- need to be prepared to sacrifice. They have to fund America's annual trillion-dollar deficits for the foreseeable future. These creditor nations, who already own trillions of dollars of U.S. government debt, are the only entities capable of underwriting the spending that Mr. Obama envisions and that U.S. citizens demand.
These nations, in other words, must never use the money to buy other assets or fund domestic spending initiatives for their own people. When the old Treasury bills mature, they can do nothing with the money except buy new ones. To do otherwise would implode the market for U.S. Treasurys (sending U.S. interest rates much higher) and start a run on the dollar. (If foreign central banks become net sellers of Treasurys, the demand for dollars needed to buy them would plummet.)
In sum, our creditors must give up all hope of accessing the principal, and may be compensated only by the paltry 2%-3% yield our bonds currently deliver.
Read the entire piece
Thursday, January 29, 2009
Supreme Court Rules That It Is OK To Frisk Passengers
Source: AP
The Supreme Court ruled Monday that police officers have leeway to frisk a passenger in a car stopped for a traffic violation even if nothing indicates the passenger has committed a crime or is about to do so.
The court on Monday unanimously overruled an Arizona appeals court that threw out evidence found during such an encounter.
The case involved a 2002 pat-down search of an Eloy, Ariz., man by an Oro Valley police officer, who found a gun and marijuana.
The justices accepted Arizona's argument that traffic stops are inherently dangerous for police and that pat-downs are permissible when an officer has a reasonable suspicion that the passenger may be armed and dangerous.
The pat-down is allowed if the police "harbor reasonable suspicion that a person subjected to the frisk is armed, and therefore dangerous to the safety of the police and public," Justice Ruth Bader Ginsburg said.
The Supreme Court ruled Monday that police officers have leeway to frisk a passenger in a car stopped for a traffic violation even if nothing indicates the passenger has committed a crime or is about to do so.
The court on Monday unanimously overruled an Arizona appeals court that threw out evidence found during such an encounter.
The case involved a 2002 pat-down search of an Eloy, Ariz., man by an Oro Valley police officer, who found a gun and marijuana.
The justices accepted Arizona's argument that traffic stops are inherently dangerous for police and that pat-downs are permissible when an officer has a reasonable suspicion that the passenger may be armed and dangerous.
The pat-down is allowed if the police "harbor reasonable suspicion that a person subjected to the frisk is armed, and therefore dangerous to the safety of the police and public," Justice Ruth Bader Ginsburg said.
Sunday, January 25, 2009
Friday, January 23, 2009
Wednesday, January 21, 2009
I think I'm going to be sick
If I hear one more person say, "Yes We Can" I may loose it. Lemmings of the world unite, then run to the sea.