While you were watching Rand Paul's historic filibuster and the debate surrounding budget sequestration, an economic theory battle was waging between two of the nation's foremost liberal economists Paul Krugman and Jeffrey Sachs.
In his most recent salvo published at the Huffington Post Saturday, Sachs spoke heresy to Obama-lovers across the fruited plain including Krugman claiming that following the 2008 financial crisis, "It was the Fed, not the fiscal stimulus, which prevented a fall into depression."
After hyping a "fiscal emergency" that could "vaporize" America, the journalists at Good Morning America seemed slightly puzzled that daily life has continued. GMA anchor George Stephanopoulos on Tuesday talked to reporter Bianna Golodryga and marveled, "...Investors seem to be shrugging off any economic impact from the stalemate in Washington, those across the board spending cuts."
Golodryga lamented the lack of panic, complaining, "Yeah, isn't that kind of sad? It was basically anticipated that we were going to have these spending cuts." [See video below. MP3 audio here.] Isn't that kind of sad? Golodryga admitted, "You're not seeing a huge effect on the economy. Economists are saying that we could have some sort of impact. It could slow growth but not really bring us into another recession." Just last week, on the same program, news reader Josh Elliott opened the show by panicking: "Jobs vaporizing, flights delayed, even criminals walking free."
As NewsBusters reported earlier, New York Times columnist Paul Krugman and MSNBC's Joe Scarborough had quite a heated discussion about the budget, debt, and the economy on PBS's Charlie Rose Monday evening.
Near its conclusion, Scarborough actually scolded Krugman for pompously behaving like a sighing Al Gore (video follows with transcript and commentary):
New York Times columnist Paul Krugman and MSNBC's Joe Scarborough had an at times heated discussion about budget deficits, debt, and the economy on PBS's Charlie Rose Monday evening.
At one point Krugman got so rattled by the facts that he actually said Scarborough quoting what he had said in the past was making an ad hominem attack against him (video follows with transcript and commentary):
Chris Matthews asked a question Sunday that should truly offend people on both sides of the aisle.
During the syndicated program bearing his name, Matthews asked his panel, "Has President Obama put himself at political risk if the big cuts do not wreak havoc?" (video follows with transcript and commentary):
Did you know that the mortgage interest deduction was a major contributor to families' distressed circumstances leading to the housing bubble? Or that George W. Bush's (really modest) tax cuts in 2001 and 2003, not the Internet bubble of the late-1990s led the nation from fiscal surplus to deficits?
The reason you don't "know" these things is that they're not true. But the Associated Press's Tom Raum thinks they are, and said so as if they are indisputable facts in an AP analysis piece (or at least I hope it was meant to be that) yesterday. In over 850 words, he also failed to note, while barely acknowleding their existence, that Republicans in the House already acquiesced to $620 billion in tax increases in return for a "whopping" $15 billion in spending cuts during the fiscal cliff deal at the end of last year. Excerpts from Raum's risible writeup follow the jump.
It’s certainly clear to Jay Leno that the Obama administration is fearmongering the budget sequester.
On NBC’s Tonight Show Thursday, Leno played a mock White House ad claiming among other things that if sequestration occurs, “Girl Scouts will be forced to sell meth" (video follows with transcript and commentary):
CNBC's Maria Bartiromo made a statement Sunday about all of the fearmongering concerning the looming budget sequester that people on both sides of the aisle should pay attention to.
Appearing on NBC's Meet the Press, Bartiromo said, "I think Wall Street is seeing this as scare tactics because if the market really believed that the economy was going to be paralyzed on March 1 we would not be trading near record highs" (video follows with transcript and commentary):
Stop the presses! Stop the presses! Bill Maher on Friday actually said something well-reasoned and intelligent that conservatives - including members of the Tea Party - might agree with.
"We have 23.5 percent dirt bags in America," the HBO Real Time host surprisingly said. "It just seems like there’s less people pulling the wagon and more people in the wagon, and at some point the wagon is going to break" (video follows with transcript and commentary):
The left must think Treasury Secretary Tim Geithner is a magician, since they think funds to evade the debt ceiling can be conjured up in the form of a platinum coin.
The left-wing blogosphere has been promoting a loony idea to prevent the GOP from being able to cut spending in debt ceiling negotiations. The idea has gained traction with a Bloomberg News contributor and well-known liberal economist Paul Krugman, and being heavily promoted by sites like Huffington Post. So many people are talking about it that it has a twitter hashtag: #mintthecoin.
Here’s something I bet you thought you’d never see at the perilously liberal Huffington Post.
In a Dean Baker article published Tuesday with the astonishing title “There Is No Santa Claus and Bill Clinton Was Not an Economic Savior,” the second sentence read, “Just as little kids have to come to grips with the fact that there is no Santa Claus, it is necessary for millions of liberals, including many who think of themselves as highly knowledgeable about economic matters, to realize that President Clinton's policies sent the economy seriously off course.”
Former Speaker of the House Newt Gingrich on Sunday gave Lawrence O'Donnell a much-needed education on the economic impact of the Bill Clinton tax hikes in the '90s.
As O'Donnell precipitated the exchange, he perfectly demonstrated why MSNBC commentators are far too liberally biased to be invited on NBC's Meet the Press (video follows with transcript and commentary):
In an interview with CBS News anchor Scott Pelley last week, Goldman Sachs chairman and CEO Lloyd Blankfein immediately brought up a highly sensitive subject that liberals in the media and highest levels of government refuse to acknowledge: entitlement spending on Social Security, Medicare, and Medicaid are unsustainable at their current rate and need significant reform to ensure those programs exist in the future.
In response to the clip, MSNBC host Ed Schultz and Teamsters President James Hoffa were beside themselves on Tuesday night's Ed Show -- offended that Blankfein would voice such a "misinformed" view on national television. The only son of the notorious Jimmy Hoffa was ardently opposed to the idea that there is anything currently wrong with the system as is, to suggest otherwise is just "outrageous" he thundered. [ relevant video & transcript below ]
Schlockumentary filmmaker Michael Moore had some straight talk for Barack Obama Monday.
In a letter to the President published at the perilously liberal Huffington Post, Moore advised Obama to "DRIVE THE RICH RIGHT OFF THEIR FISCAL CLIFF" while putting an end to "the s***ting on the poor."
On November 14, the Hill reported that "Senate Democrats, feeling confident from their net gain of two seats in last week’s election, say any deficit-reduction package negotiated in the coming weeks must include stimulus measures." Alexander Bolton's writeup quoted Senator Chuck Schumer publicly asserting that "We have to do something because the economy is not growing fast enough in the first year or two." Although Schumer was referring to 2013 and 2014, the "not growing fast enough" characterization fits the U.S. economy under President Barack Obama's and Fed Chairman Ben Bernanke's "stimulus"-oriented policies ever since the recession officially ended in June 2009.
The fact that Democrats insist on more so-called "pump-priming" after four years of trillion dollar-plus deficits accompanied by tepid growth, thereby increasing the chances that the deficit streak will hit five years or more, even with tax hikes, while growth remains anemic, is something one might consider to be, well, news. But apparently not at the Associated Press, aka the Administration's Press, or the Politico.
In a Friday report at the Associated Press on Friday with a celebratory headline ("2 YEARS AFTER IPO, GM IS PILING UP CASH"), Auto Writer Tom Krisher described bailed-out General Motors as "thriving," but didn't identify one of the important reasons for that characterization.
In paragraphs about the company's profitability and cash stockpile, Krisher failed to note that the company still hasn't paid any U.S. income taxes since emerging from bankruptcy, or why that's the case (bolds are mine throughout this post):
Yesterday, AFL-CIO head Richard Trumka may have broken a modern record for chutzpah exhibited by a labor leader Friday in criticizing management's decision at bankrupt snack maker Hostess Brands to liquidate in the wake of irreconcilable issues with its unions. In a Friday afternoon report at Politico, Kevin Cirilli not only let Trumka get away with it; he also lent the labor leader's contentions additional misleading support.
Trumka blamed the company's apparently imminent demise on "Bain-style Wall Street vultures." He wants everyone to believe that it's greedy, eeeevil Republican private-equity types who are on the brink of putting yet another company out of business. The "clever" framing of that quoted phrase appears to indicate that Trumka already knew better. It seems very likely that Cirilli also knew better. Three hours before the initial time stamp of Cirilli's report, Zero Hedge re-exposed the heavy involvement of D-D-D-Democrats in Hostess's management and advisors originally documented way back in july at CNNMoney by David Kaplan (additional paragraph breaks added by me; bolds are mine throughout this post):
A congressional investigation into a failed venture capital firm run by a prominent former governor has faulted said governor for the debacle, which famously lost some billions in investor funds which, to this day, have not been accounted for.
No, it wasn’t Mitt Romney – it was former Democratic Governor of New Jersey Jon Corzine. One mystery that plagues this investigation is Mr. Corzine’s David Copperfield act that wiped $1.6 billion from MF Global’s client fund, which occurred days before the whole firm crumbled. Dina ElBoghdady of The Washington Post reported in the November 15 paper about this episode in financial malfeasance that cost people their jobs, and their savings – but it wasn’t too important for the paper's editors, who buried the item on page A18.
While President Obama's record-breaking pace to raising a total of $1 billion earlier this month received significant media attention, there was little if any curiosity among the traditional press about how he was on track to achieve such an unprecedented milestone in presidential fundraising. The broadcast networks in particular have not bothered to mention the growing scandal that is being scrupulously pieced together by alternative media outlets.
An independently-owned website Obama.com (redirects to official site here) has been suspected of accepting millions of dollars worth of illegal foreign donations for months now. Despite all the speculation and accusations coming from a nonprofit organization known as the Government Accountability Institute (GAI), no action had been taken until recently.
Reporting on the Massachusetts Senate race on Thursday, CNN's Brooke Baldwin played a Democratic card by noting the amount of Wall Street money Republican incumbent Scott Brown's campaign receives compared with his Democratic challenger Elizabeth Warren, who has campaigned as a populist opponent of Wall Street.
"The Center for Responsive Politics was reporting nearly 9 out of every 10 Wall Street dollars spent in the Massachusetts campaign here going to Brown. How is that playing, how will that play with voters there?" Baldwin asked her guest, after noting the "huge sea change" causing Warren's lead in the polls. She didn't ask about any of Brown's attacks on Warren, however. [Video below the break. Audio here.]
Even though it was near the top of the raw news wire at the Associated Press, aka the Administration's Press, when I saw it, I had to check the date on Tom Raum's item entitled "Why It Matters: Debt." Sure enough, it really does have a September 24. 1:36 p.m. time stamp.
That is intensely ironic and somewhat delicious, because the final sentence of Raum's dispatch directly contradicts something President Barack Obama said in his appearance on David Letterman's show last week -- something I believe (but can't prove, due to frequent wire service revisions) the AP originally failed to report.
Entitled "Fed action a welcome move for small businesses" and appearing very early this morning, it claims that Federal Reserve Chairman Ben Bernanke's third round of quantitative easing, aka QE3, is "confidence-building move" and "a reassuring sign to the financial markets as it signals to investors that U.S. monetary policy will serve as a stabilizing partner as our economy continues to improve. Its author, Sharon Jenkins, described as "is principal and lead strategist at Alexandria-based My Brothers’ Business Enterprises," is not a regular at the blog; unlike all others I saw, her name isn't even hyperlinked at her post. So who is this "Sharon Jenkins"?
Whoever wrote the Associated Press's brief dispatch yesterday on the results of the government's auction of 10-year Treasury notes seemed to be stunned and on the defensive about its result.
The item, entitled "Weak Demand at Auction of 10-Year U.S. Treasury Debt," began as follows: "U.S. Treasury prices dived Wednesday after an auction of 10-year notes drew very weak demand, signaling a lack of appetite for ultra-safe investments." Gee, I wonder why there's a "lack of appetite"?
In his weekend syndicated column, Deroy Murdock unearthed and relayed information the establishment press hasn't told the nation about how certain public-sector pension funds and university endowments have chosen to invest money entrusted to them in Bain Capital. Yes, Bain Capital.
Until three weeks ago, it would have been somewhat understandable if the business press didn't expect to find a story here. After all, who would expect that the organizations complaining the loudest and longest about the conduct of Bain, the private-equity firm GOP presidential candidate Mitt Romney left over a decade ago, would actually have significant funds invested there? These people couldn't possibly be that hypocritical, could they? Oh yes they could.
In his Jackson Hole, Wyoming presentation today, Federal Reserve Chairman Ben Bernanke, as reported by Paul Wiseman at the Associated Press, made the following claim in connection with the Fed's programs of "quantitative easing" (QE): "Bernanke argued Friday that collectively, such measures have succeeded. He cited research showing that two rounds of QE (quantitative easing) had created 2 million jobs and accelerated U.S. economic growth."
I'm not inclined to automatically believe Big Ben's word. But if he's right, and if the allegedly positive effects of QE started being felt at about the time the recession ended, that would mean that the fiscal policies of the Obama administration are responsible for the remnant. Of course, Wiseman at the Associated Press, aka the Administration's Press, didn't ask the next logical question, so I will. Guess how big that remnant is?