Barack Obama Unveils $447Bn Jobs Plan

[interestrateripoff]

http://www.guardian.co.uk/world/2011/sep/09/ewen-macaskill-in-washington

Barack Obama used a televised address to the nation to unveil a $447bn package aimed at bringing down the country's high jobless total, the issue that could determine whether he wins re-election next year.

In a rare joint session of Congress on Thursday night, the president challenged the Republicans to end the "political circus" in Washington by approving legislation he is to send them next week, the American Jobs Act.

.......

The American Jobs Act includes $140bn for building roads, bridges and other major infrastructure projects that would put hundreds of thousands into work; $70bn in tax breaks for small businesses; tax credits for companies taking on military veterans; tax and training for the long-term jobless, and aid to states so that they do not have to lay off 280,000 teachers, as well as other workers. Infrastructure projects include repairing and modernising 35,000 schools.

The biggest expenditure, $175bn, is to put more money into the pockets of workers and their families through a 50% cut in payroll tax.

Got to give top marks for the name, the American Jobs Act hardly propaganda at all.

Would simply giving the money to the millions of unemployed be better bet at creating jobs?

Although clearly not spending money you don't have is going to yield better long term results. Yet again we have politicians trying to avoid recessions.

Recessions are needed in the economy and if you want to avoid them don't have massive fooking bubbles in your economy.

[aa3]

Its sounds like a good start to me. One estimate I heard was it could create around 700,000 jobs. I say a start because really America needs at least 10 million new jobs created by the central government.

[interestrateripoff]

Telegraph Key quotes

[interestrateripoff]

http://www.zerohedge.com/news/obamas-speech-ali-g-style

What the hell: this is no longer even a Banana republic. We are now officially an Onion republic. So let's party like it's an Onion republic.

Courtesy of the Ali G translator (obviously)

Mr. speaka, mr. vice president, members hof congress, an' fellow americans: tonight we meet hat an urgent bells fe our turf. we continue to face an economic crisis dat has westside side millions hof our neighbors jobless, an' da political crisis dat has made tings worse. this past week, reporters as bin askin “what iz gonna dis speech mean fe da president? wot iz gonna hit mean fe congress? how iz gonna hit affect dare polls, an' da next elecshun?” but da millions hof americans who iz watchin east side now: dey don’t care about politics. dey as real life concerns. many as spent momphs lookin fe wurk. others iz doin dare fittest just to scrape by – givin up nights hout wiv da posse to save on gas or make da mortgage; postponin retirement to send da kid to scool. these bruvers an' bitches grew up wiv faith in an america where ard wurk an' responsibility paid off. dey believed in da turf where everyone gets da fair shake an' does dare fair share – where if yous stepped up, did ya job, an' wuz loyal to ya possie, dat loyalty iz gona be rewarded wiv da decent salary an' heavy benefits; maybe da raise once in awhile. if yous did da east side tin, yous could make hit in america. but fe decades now, americans as watched dat compact erode. dey as seun da dek too oftun stacked against dem. an' dey nah dat washington hasn’t always put dare interests first. the peeps hof dis turf wurk ard to meet dare responsibilities. da quesshun tonight iz whetha we’ll meet ours. da quesshun iz whetha, in da face hof an ongoin national crisis, we can stop da political circus an' hactually do sumfink to help da economy; whetha we can restore some hof da fairness an' security dat has defined dis nashun since our beginnin. those hof us in da house tonight can’t solve all hof our nation’s woes. ultimately, our recovery iz gonna be drivun not by washington, but by our businesses an' our boys. but we can help. we can make da difference. dere iz steps we can take east side now to improve people’s lives. i iz sendin dis congress da plan dat yous should pass east side away. it’s called da american jobs act. dere should be naffink controversial about dis piece hof legislashun. everythin in in da house iz da kind hof proposal that’s bin supported by both democrats an' republicans – includin many who sit in da house tonight. an' everythin in dis bill iz gonna be paid fe. everythin. the purpose hof da american jobs act iz simple: to put more peeps bak to wurk an' more moolar in da pockets hof those who iz workin'. hit iz gonna create more jobs fe construcshun boys, more jobs fe well batty homos wit massiv heads, more jobs fe veterans, an' more jobs fe da long-term unemployed. hit iz gonna provide da tax bus' fe companies who hire fresh boys, an' hit iz gonna cut payroll taxes in half fe every workin' american an' every small bizzle. hit iz gonna provide da jolt to an economy dat has stalled, an' borrow companies confidence dat if dey invest an' hire, dere iz gonna be customers fe dare products an' services. yous should pass dis jobs plan east side away. everyone in da house knows dat small businesses iz where most fresh jobs begin. an' yous nah dat while corporate profits as spitz roarin bak, smalla companies haven’t. so fe everyone who speaks so passionately about makin life easia fe “job creators,” dis plan iz fe yous. pass dis jobs bill, an' startin tomorrow, small businesses iz gonna get da tax cut if dey hire fresh boys or raise workers’ wages. pass dis jobs bill, an' all small bizzle owners iz gonna also chek dare payroll taxes cut in half next year. if yous as 50 employees makin an average salary, that’s an $80,000 tax cut. an' all businesses iz gonna be able to continue writin off da investments dey make in 2012. it’s not just democrats who as supported dis kind hof proposal. fifty yard republicans as proposed da same payroll tax cut that’s in dis plan. yous should pass hit east side away. pass dis jobs bill, an' we can put peeps to wurk rebuildin america. everyone in da house knows dat we as badly decayin roads an' bridges all ova dis turf. our highways iz clogged wiv traffic. our skies iz da most congested in da world. this iz inexcusable. buildin da world-class transportashun system iz part hof wot made us an economic superpowa. an' now we’re gonna sit bak an' watch china build newa airports an' fasta railroads? hat da bells whun millions hof unemployed construcshun boys could build dem east side in da house in america? there iz private construcshun companies all across america just waitin to get to wurk. there’s da bridge dat needs repair betweun ohio an' kentucky that’s on one hof da busiest truckin routes in north america. da public transit project in houston dat iz gonna help clear up one hof da cackest areas hof traffic in da turf. an' dere iz schools throughout dis turf dat desperately need renovatin. how can we expect our kids to do dare fittest in places dat iz literally fallin apart? dis iz america. every child deserves da yorkie scool – an' we can borrow hit to dem, if we act now. the american jobs act iz gonna repair an' modernize hat least 35,000 schools. hit iz gonna put peeps to wurk east side now fixin roofs an' windows; installin science labs an' high-speed intaweb in classrooms all across dis turf. hit iz gonna rehabilitate homes an' businesses in communities spark hardest by foreclosures. hit iz gonna jumpstart thousands hof transportashun projects across da turf. an' to make shizzle da moolar iz properly spent an' fe heavy purposes, we’re buildin on reforms we’ve already put in place. narr more earmarks. narr more boondoggles. narr more bridges to nowhere. we’re cuttin da red tape dat prevents some hof dees projects from gettin' started as quickly as possible. an' we’ll set up an independent fund to attract private squid an' issue loans based on two criteria: how badly da construcshun project iz needed an' how much heavy hit iz gona do fe da economy. this idea came from da bill writtun by da texas republican an' da massachusetts democrat. da idea fe da massiv boost in construcshun iz supported by america’s largest bizzle organizashun an' america’s largest labor organizashun. it’s da kind hof proposal that’s bin supported in da past by democrats an' republicans alike. yous should pass hit east side away. pass dis jobs bill, an' thousands hof well batty homos wit massiv heads in every state iz gonna go bak to wurk. dees iz da bruvers an' bitches charged wiv preparin our childrun fe da world where da competishun has neva bin tougha. but while they’re addin well batty homos wit massiv heads in places dig south korea, we’re layin dem off in droves. it’s unfair to our kids. hit undermines dare future an' ours. an' hit has to stop. pass dis jobs bill, an' put our well batty homos wit massiv heads bak in da classroom where dey belong. pass dis jobs bill, an' companies iz gonna get extra tax credits if dey hire america’s veterans. we ask dees bruvers an' bitches to leave dare careers, leave dare families, an' risk dare lives to ruk fe our turf. da last tin dey should af do iz ruk fe da job whun dey spitz turf. pass dis bill, an' hundreds hof thousands hof disadvantaged young peeps iz gonna as da hope an' dignity hof da summa job next year. an' dare parents, low-income americans who desperately iz gona dig to wurk, iz gonna as more ladders hout hof poverty. pass dis jobs bill, an' companies iz gonna get da $4,000 tax credit if dey hire anyone who has spent more dan six momphs lookin fe da job. we af do more to help da long-term unemployed in dare chek fe wurk. dis jobs plan builds on da program in georgia dat several republican leaders as highlighted, where peeps who collect unemployment insurance participate in temporary wurk as da way to build dare skills while dey chek fe da permanent job. da plan also extends unemployment insurance fe anotha year. if da millions hof unemployed americans stopped gettin' dis insurance, an' stopped usin' dat moolar fe basic necessities, hit iz gona be da devastatin blow to dis economy. democrats an' republicans in dis chamba as supported unemployment insurance plenty hof times in da past. hat dis bells hof prolonged hardship, yous should pass hit again – east side away. pass dis jobs bill, an' da typical workin' posse iz gonna get da fifteun quillion dollar tax cut next year. fifteun quillion squid dat iz gona as bin takun hout hof ya paychek iz gonna go east side into ya pocket. dis expands on da tax cut dat democrats an' republicans already passed fe dis year. if we h'llow dat tax cut to expire – if we refuse to act – middle-class families iz gonna get spark wiv da tax increase hat da cackest possible bells. we cannot let dat happun. I nah some hof yous as sworn oaths to neva raise any taxes on anyone fe as long as yous live. now iz not da bells to carve hout an excepshun an' raise middle-class taxes, which iz why yous should pass dis bill east side away. this iz da american jobs act. hit iz gonna lead to fresh jobs fe construcshun boys, well batty homos wit massiv heads, veterans, first responders, young peeps an' da long-term unemployed. hit iz gonna provide tax credits to companies dat hire fresh boys, tax relief fe small bizzle owners, an' tax cuts fe da middle-class. an' here’s da uva tin I dig da american peeps to know: da american jobs act iz gonna not add to da deficit. hit iz gonna be paid fe. an' here’s how: the agreement we passed in july iz gonna cut government spendin by about $1 quillion ova da next tun years. hit also charges dis congress to spitz up wiv an additional $1.5 quillion in savings by christmas. tonight, i’m askin yous to increase dat amount so dat hit covers da maximum cost hof da american jobs act. an' da week from monday, i’ll be releasin da more ambitious deficit plan – da plan dat iz gonna not only cova da cost hof dis jobs bill, but stabilize our debt in da long run. this approach iz basically da one i’ve bin advocatin fe momphs. in addishun to da quillion squid hof spendin cuts i’ve already signed into flange, it’s da balanced plan dat iz gona reduce da deficit by makin additional spendin cuts; by makin modest adjustments to health care programs dig medicare an' medicaid; an' by reformin our tax code in da way dat aks da wealthiest americans an' biggest corporations to pay dare fair share. what’s more, da spendin cuts wouldn’t happun so abruptly dat they’d be da drag on our economy, or prevent us from helpin small bizzle an' middle-class families get bak on dare feet east side away. now, I realize dere iz some in me masseave gavrin' who don’t fink we should make any changes hat all to medicare an' medicaid, an' I feel dare concerns. but here’s da truth. millions hof americans rely on medicare in dare retirement. an' millions more iz gonna do so in da future. dey pay fe dis benefit durin dare workin' years. dey earn hit. but wiv an agin populashun an' risin health care costs, we iz spendin too fast to sustain da program. an' if we don’t gradually reform da system while protectin current beneficiaries, hit won’t be dere whun future retirees need hit. we af reform medicare to strengthun hit. i’m also well aware dat dere iz many republicans who don’t reckon we should raise taxes on those who iz most fortunate an' can fittest afford hit. but in da house iz wot every american knows. while most peeps in dis turf struggle to make ends meet, da few hof da most affluent citizens an' corporations dig tax breaks an' loopholes dat nobody else gets. east side now, warrun buffet pays da lowa tax rate dan iz secretary – an outrage e has asked us to fix. we need da tax code where everyone gets da fair shake, an' bruvers pays dare fair share. an' I reckon da vast majority hof wealthy americans an' ceos iz willin to do just dat, if hit helps da economy grow an' gets our fiscal yard in orda. i’ll also offa ideas to reform da corporate tax code dat stands as da monument to special interest influence in washington. by eliminatin pages hof loopholes an' deductions, we can lowa one hof da highest corporate tax rates in da world. our tax code shouldn’t borrow an advantage to companies dat can afford da best-connected lobbyists. hit should borrow an advantage to companies dat invest an' create jobs in da house in america. so we can reduce dis deficit, pay down our debt, an' pay fe dis jobs plan in da process. but in orda to do dis, we af decide wot our priorities iz. we af ask ourselves, “what’s da fittest way to grow da economy an' create jobs?” should we keep tax loopholes fe oil companies? or should we use dat moolar to borrow small bizzle owners da tax credit whun dey hire fresh boys? coz we can’t afford to do both. should we keep tax breaks fe millionaires an' billionaires? or should we put well batty homos wit massiv heads bak to wurk so our kids can graduate ready fe scool an' heavy jobs? east side now, we can’t afford to do both. this isn’t political grandstandin. dis isn’t class warfare. dis iz simple maff. dees iz real choices dat we af make. an' i’m fit shizzle I nah wot most americans iz gona choose. it’s not evun close. an' it’s bells fe us to do what’s east side fe our future. the american jobs act answers da urgent need to create jobs east side away. but we can’t stop dere. as i’ve argued since I ran fe dis office, we af chek beyond da immediate crisis an' start buildin an economy dat lasts into da future – an economy dat creates heavy, middle-class jobs dat pay well an' offa security. we now live in da world where bits has made hit possible fe companies to take dare bizzle anywhere. if we dig dem to start in da house an' stay in da house an' hire in da house, we af be able to out-build, out-educate, an' out-innovate every uva turf on earth. this task, hof makin america more competitive fe da long haul, iz da job fe all hof us. fe government an' fe private companies. fe states an' fe local communities – an' fe every american citizun. all hof us iz gonna af up our game. all hof us iz gonna af change da way we do bizzle. my administrashun can an' iz gonna take some steps to improve our competitiveness on our own. fe example, if you’re da small bizzle owna who has da contract wiv da federal government, we’re gonna make shizzle yous get paid nuff fasta dan yous do now. we’re also plannin to cut away da red tape dat prevents too many rapidly-growin start-up companies from raisin capital an' gwaan public. an' to help responsible homeowners, we’re gonna wurk wiv federal housin agencies to help more peeps refinance dare mortgages hat interest rates dat iz now near 4% -- da step dat can put more dan $2,000 da year in da family’s pocket, an' borrow da lift to an economy still burdened by da drop in housin prices. otha steps iz gonna require congressional acshun. today yous passed reform dat iz gonna speedun up da outdated patent process, so dat entrepreneurs can turn da fresh idea into da fresh bizzle as quickly as possible. that’s da kind hof acshun we need. now it’s bells to clear da way fe da series hof trade agreements dat iz gona make hit easia fe american companies to borrow dare products in panama, colombia, an' south korea – while also helpin da boys whose jobs as bin affected by global competishun. if americans can purchase kias an' hyundais, me iz gona dig to chek folks in south korea drivin' fords an' chevys an' chryslers. me iz gona dig to chek more products sold around da world stamped wiv three proud words: “made in america.” and on all hof our efforts to strengthun competitiveness, we need to chek fe ways to wurk side-by-side wiv america’s businesses. that’s why i’ve brought togetha da jobs council hof leaders from different industries who iz developin da wide range hof fresh ideas to help companies grow an' create jobs. already, we’ve mobilized bizzle leaders to train 10,000 american engineers da year, by providin possie internships an' trainin. uva businesses iz coverin tuishun fe boys who learn fresh skills hat community colleges. an' we’re gonna make shizzle da next generashun hof manufacturin takes root not in china or europe, but east side in da house, in da united states hof america. if we provide da east side incentives an' help – an' if we make shizzle our tradin partners play by da rulz – we can be da ones to build everythin from fuel-efficient cars to advanced biofuels to semiconductors dat iz sold all ova da world. that’s how america can be dijits one again. that’s how america iz gonna be dijits one again. now, I realize dat some hof yous as da different theory on how to grow da economy. some hof yous sincerely reckon dat da only solushun to our economic challenges iz to simply cut most government spendin an' eliminate most government regulations. well, I agree dat we can’t afford wasteful spendin, an' I iz gonna continue to wurk wiv congress to get rid hof hit. an' I agree dat dere iz some rulz an' regulations dat put an unnecessary burdun on businesses hat da bells whun dey can least afford hit. that’s why I ordered da review hof all government regulations. so far, we’ve identified ova 500 reforms, which iz gonna save billions hof squid ova da next few years. we should as narr more regulashun dan da health, safety, an' security hof da american peeps require. every rule should meet dat common sense test. but wot we can’t do – wot I won’t do – iz let dis economic crisis be used as an ekscuse to wipe hout da basic protections dat americans as counted on fe decades. I reject da idea dat we need to ask peeps to choose betweun dare jobs an' dare safety. I reject da ruk dat says fe da economy to grow, we af roll bak protections dat ban hiddun fees by credit card companies, or rulz dat keep our kids from bein exposed to mercury, or laws dat prevent da health insurance industry from shortchangin patients. I reject da idea dat we af strip away collective bargainin rights to compete in da global economy. we shouldn’t be in da race to da batty, where we try to offa da cheapest labor an' da cackest pollushun standards. america should be in da race to da top. an' I reckon that’s da race we can win. in fact, dis larga noshun dat da only tin we can do to restore prosperity iz just dismantle government, refund everyone’s moolar, let everyone write dare own rulz, an' tell everyone they’re on dare own – that’s not who we iz. that’s not da story hof america. yes, we iz rugged individualists. aiii, we iz strong an' self-reliant. an' hit has bin da drive an' initiative hof our boys an' entrepreneurs dat has made dis economy da engine an' envy hof da world. but dere has always bin anotha thread runnin throughout our history – da belief dat we iz all connected; an' dat dere iz some tings we can only do togetha, as da nashun. we all rememba abraham lincoln as da leada who saved our union. but in da middle hof da civil war, e wuz also da leada who looked to da future – da republican president who mobilized government to build da transcontinental railroad; launch da national academy hof sciences; an' set up da first turf grant colleges. an' leaders hof both parties as followed da example e set. ask yourselves – where iz gona we be east side now if da peeps who sat in da house before us decided not to build our highways an' our bridges; our dams an' our airports? wot iz gona dis turf be dig if we had chosun not to spend moolar on public maximum schools, or research universities, or community colleges? millions hof returnin heroes, includin me ganjadadie, had da opportunity to go to scool coz hof da gi bill. where iz gona we be if dey hadn’t had dat chance? how many jobs iz gona hit as cost us if past congresses decided not to help da basic research dat led to da intaweb an' da poota chip? wot kind hof turf iz gona dis be if dis chamba had voted down social security or medicare just coz hit violated some rigid idea about wot government could or could not do? how many americans iz gona as suffered as da result? no single individual built america on dare own. we built hit togetha. we as bin, an' always iz gonna be, one nashun, unda god, indivisible, wiv liberty an' justice fe all; da nashun wiv responsibilities to ourselves an' wiv responsibilities to one anotha. members hof congress, hit iz bells fe us to meet our responsibilities. every proposal i’ve laid hout tonight iz da kind that’s bin supported by democrats an' republicans in da past. every proposal i’ve laid hout tonight iz gonna be paid fe. an' every proposal iz designed to meet da urgent needs hof our peeps an' our communities. i nah there’s bin nuff hof skepticism about whetha da politics hof da moment iz gonna h'llow us to pass dis jobs plan – or any jobs plan. already, we’re seein da same batty press releases an' tweets flyin bak an' forth. already, da media has proclaimed dat it’s impossible to bridge our differences. an' maybe some hof yous as decided dat those differences iz so yorkie dat we can only resolve dem hat da ballot box. but nah this: da next elecshun iz fourteun momphs away. an' da peeps who sent us in da house – da peeps who hired us to wurk fe dem – dey don’t as da luxury hof waitin fourteun momphs. some hof dem iz livin week to week; paychek to paycheck; evun day to day. dey need help, an' dey need hit now. i don’t pretend dat dis plan iz gonna solve all our problems. hit shouldn’t be, nor iz gonna hit be, da last plan hof acshun we propose. what’s guided us from da start hof dis crisis hasn’t bin da chek fe da silva bullet. it’s bin da commitment to stay hat hit – to be persistent – to keep tryin every fresh idea dat works, an' listun to every heavy proposal, narr matta which masseave gavrin' comes up wiv hit. regardless hof da ruks we’ve had in da past, regardless hof da ruks we’ll as in da future, dis plan iz da east side tin to do east side now. yous should pass hit. an' I intend to take dat message to every corna hof dis turf. I also ask every american who agrees to lift ya voice an' tell da peeps who iz gathered in da house tonight dat yous dig acshun now. tell washington dat doin naffink iz not an opshun. remind us dat if we act as one nashun, an' one peeps, we as hit wivvin our powa to meet dis challenge. president kennedy once said, “our problems iz man-made – therefore dey can be solved by geeza. an' geeza can be as massiv as e wants.” these iz difficult years fe our turf. but we iz americans. we iz tougha dan da times dat we live in, an' we iz bigga dan our politics as bin. so let’s meet da moment. let’s get to wurk, an' show da world once again why da united states hof america remains da greatest nashun on earth. fank yous, god bless yous, an' may god bless da united states hof america. Is it coz I is black?

From Zerohedge.

[Lepista]

You missed the important bit about the mortgages...

[interestrateripoff]

You missed the important bit about the mortgages...

http://www.telegraph.co.uk/news/worldnews/barackobama/8751376/Barack-Obamas-American-Jobs-Act-speech-in-full.html

And to help responsible home owners, we’re going to work with Federal housing agencies to help more people refinance their mortgages at interest rates that are now near 4% – a step that can put more than $2,000 a year in a family’s pocket, and give a lift to an economy still burdened by the drop in housing prices.

This bit?

Perhaps encouraging the paying down of debt by $2000+ a year would help the US economy far more in the long term?

[matroskin]

http://www.telegraph.co.uk/news/worldnews/barackobama/8751376/Barack-Obamas-American-Jobs-Act-speech-in-full.html

This bit?

Perhaps encouraging the paying down of debt by $2000+ a year would help the US economy far more in the long term?

Far from it. KB gives 3 reasons why not

It prepays the existing MBS. That's "good" for the homeowner. It's disastrous for the MBS holder, who gets taken out of a position that was yielding 5 or even 6% and is replaced with something at a quarter to a third less! For the performing loan it's a big problem, and that "problem" falls right on pension funds and similar investors. They will get screwed badly and there is no reasonable way for them to make it up.

It probably impacts MSR valuations and not in a good way. That's bad too, this time for the banks, which count those as "money good" and are a very valuable asset.

It makes "fixing" the GSEs difficult - or impossible. Remember that a lot of these loans are underwater. Nobody's going to take them at the coupon everyone wants to see without a guarantee by the government, which means the GSEs now become permanent wards of the state. Can that objection be overcome? I don't know - that could be a lot of fun politically.

Be ready for your pension plan to show bigger deficit (and demand bigger payments) next year when those pesky 6% MBS are redeemed.

[TheCountOfNowhere]

I've considered this matter carefully, weighing up the various facts and information and I conclude that...America is ****ed

10-15 years. Big war. Only possible outcome.

[Terribad]

I thought they couldn't afford new spending. How long til they hit the new debt ceiling?

[Traktion]

I thought they couldn't afford new spending. How long til they hit the new debt ceiling?

They just increase the ceiling and carry on.

[Traktion]

It sounds like another credit splurge of malinvestment to me.

While the tax cuts may help, they will inevitably have to be funded by borrowing and/or increased taxation later on. Can kicking, in other words. In fact, the whole announcement sounds like yet more can kicking and wishful thinking.

[Terribad]

It sounds like another credit splurge of malinvestment to me.

While the tax cuts may help, they will inevitably have to be funded by borrowing and/or increased taxation later on. Can kicking, in other words. In fact, the whole announcement sounds like yet more can kicking and wishful thinking.

Don't rule out the Laffer effect of cutting tx and increasing revenue. Believe it when I see it though.

[interestrateripoff]

I thought they couldn't afford new spending. How long til they hit the new debt ceiling?

http://www.zerohedge.com/news/senate-attempt-block-debt-ceiling-increase-fails-debt-target-now-152-trillion-or-over-100-gdp

Earlier today we observed that absent immediate action by the House and Senate to enact the critical $500 billion debt ceiling expansion, the US would run out of Keynesian dry powder as soon as Monday. There is no longer a need to worry. According to the Hill, an attempt to sabotage the bankruptcy of America has failed after a Senate resolution to disapprove the $500 billion debt ceiling increase proposed by Mitch McConnell was voted down 45 to 52. As a reminder, "Under the debt-ceiling agreement reached in early August, the Obama administration was authorized to immediately raise the debt ceiling by $400 billion. Another $500 billion increase was authorized this month, although that could have been blocked if both the House and Senate approved resolutions expressing disapproval." The opportunity cost of passing the bill would have been an additional 10 hours of work tomorrow for the Senatorial millionaires for whom insider trading is legal: "Earlier in the day Senate Majority Leader Harry Reid (D-Nev.) threatened to hold the Senate open for up to ten hours on Friday to "dispose" of the resolution if it moved forward." As a result of this vote, a parallel bill in Congress is now moot even though it has not been voted on. This effectively greenlights the increase of the US debt ceiling from the current $14.694 to $15.194 trillion, or roughly 101% of GDP.

If Zerohedge is to be believed they've already hit the new ceiling and expanded it...

[DabHand]

Excuse me but the original $800bn 'tanks on the lawn' Paulson postscript was supposed to include infrastructure investment of $100bns - so er.... what happened there then? Am l the only one who remembers???

[Terribad]

http://www.zerohedge.com/news/senate-attempt-block-debt-ceiling-increase-fails-debt-target-now-152-trillion-or-over-100-gdp

If Zerohedge is to be believed they've already hit the new ceiling and expanded it...

So basically they've spend half of the ceiling increase on a "job creation" scheme, and the remaining half will soon get gobbled up by the unsustainable fiscal situation.

Still, helps my theory of a continued bear market rally into October. More time to save for my big fat short

Edited September 9, 2011 by Terribad

[aa3]

I thought they couldn't afford new spending. How long til they hit the new debt ceiling?

My opinion is the US federal government can afford unbelievable amounts of new spending. With all the alleged prolifigacy investors are so afraid of US debt that they are demanding 2% yield if locked for 10 years.

Its hard for people to imagine this, because the paradigm is so different now. But I do believe its a new game.

[Injin]

My opinion is the US federal government can afford unbelievable amounts of new spending. With all the alleged prolifigacy investors are so afraid of US debt that they are demanding 2% yield if locked for 10 years.

Its hard for people to imagine this, because the paradigm is so different now. But I do believe its a new game.

Nice to have an opinion.

Worthless when it's contradicted by the facts.

The US government hasn't got anything. No government does. All a government can do is steal and then hand on the proceeds. The yield is low on US debt because the FED is forcing it down with printed money.

Etc.

[Terribad]

Nice to have an opinion.

Worthless when it's contradicted by the facts.

The US government hasn't got anything. No government does. All a government can do is steal and then hand on the proceeds. The yield is low on US debt because the FED is forcing it down with printed money.

Etc.

Why do you do this? The government CAN afford it. The fact that its pinched off the people or future people is just pedantry.

[winkie]

Its sounds like a good start to me. One estimate I heard was it could create around 700,000 jobs. I say a start because really America needs at least 10 million new jobs created by the central government.

Exactly...a drop in the ocean, more like creating more jobs that try to create more jobs, then the money runs out yet again.

[Injin]

Why do you do this?

For fun!

The government CAN afford it. The fact that its pinched off the people or future people is just pedantry.

The government cannot fix the problems of the people in their nation as a whole by taxing and spending.

Why?

Because to help one you must hurt another, and the action itself costs money. At best the economy will go nowhere and slowly die from the friction. And this makework stimulus ******** is amazingly far from best.

['Bart']

Excuse me but the original $800bn 'tanks on the lawn' Paulson postscript was supposed to include infrastructure investment of $100bns - so er.... what happened there then?

Does a bankster putting in a third outdoor heated swimming pool for his houseboy's poodle count as infrastructure?

[thod]

I AM certain that my fellow Americans expect that on my induction into the Presidency I will address them with a candor and a decision which the present situation of our Nation impels. This is preeminently the time to speak the truth, the whole truth, frankly and boldly. Nor need we shrink from honestly facing conditions in our country today. This great Nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. In every dark hour of our national life a leadership of frankness and vigor has met with that understanding and support of the people themselves which is essential to victory. I am convinced that you will again give that support to leadership in these critical days. 1

In such a spirit on my part and on yours we face our common difficulties. They concern, thank God, only material things. Values have shrunken to fantastic levels; taxes have risen; our ability to pay has fallen; government of all kinds is faced by serious curtailment of income; the means of exchange are frozen in the currents of trade; the withered leaves of industrial enterprise lie on every side; farmers find no markets for their produce; the savings of many years in thousands of families are gone. 2

More important, a host of unemployed citizens face the grim problem of existence, and an equally great number toil with little return. Only a foolish optimist can deny the dark realities of the moment. 3

Yet our distress comes from no failure of substance. We are stricken by no plague of locusts. Compared with the perils which our forefathers conquered because they believed and were not afraid, we have still much to be thankful for. Nature still offers her bounty and human efforts have multiplied it. Plenty is at our doorstep, but a generous use of it languishes in the very sight of the supply. Primarily this is because the rulers of the exchange of mankind's goods have failed, through their own stubbornness and their own incompetence, have admitted their failure, and abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men. 4

True they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit they have proposed only the lending of more money. Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored confidence. They know only the rules of a generation of self-seekers. They have no vision, and when there is no vision the people perish. 5

The money changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit. 6

Happiness lies not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort. The joy and moral stimulation of work no longer must be forgotten in the mad chase of evanescent profits. These dark days will be worth all they cost us if they teach us that our true destiny is not to be ministered unto but to minister to ourselves and to our fellow men. 7

Recognition of the falsity of material wealth as the standard of success goes hand in hand with the abandonment of the false belief that public office and high political position are to be valued only by the standards of pride of place and personal profit; and there must be an end to a conduct in banking and in business which too often has given to a sacred trust the likeness of callous and selfish wrongdoing. Small wonder that confidence languishes, for it thrives only on honesty, on honor, on the sacredness of obligations, on faithful protection, on unselfish performance; without them it cannot live. 8

Restoration calls, however, not for changes in ethics alone. This Nation asks for action, and action now. 9

Our greatest primary task is to put people to work. This is no unsolvable problem if we face it wisely and courageously. It can be accomplished in part by direct recruiting by the Government itself, treating the task as we would treat the emergency of a war, but at the same time, through this employment, accomplishing greatly needed projects to stimulate and reorganize the use of our natural resources. 10

Hand in hand with this we must frankly recognize the overbalance of population in our industrial centers and, by engaging on a national scale in a redistribution, endeavor to provide a better use of the land for those best fitted for the land. The task can be helped by definite efforts to raise the values of agricultural products and with this the power to purchase the output of our cities. It can be helped by preventing realistically the tragedy of the growing loss through foreclosure of our small homes and our farms. It can be helped by insistence that the Federal, State, and local governments act forthwith on the demand that their cost be drastically reduced. It can be helped by the unifying of relief activities which today are often scattered, uneconomical, and unequal. It can be helped by national planning for and supervision of all forms of transportation and of communications and other utilities which have a definitely public character. There are many ways in which it can be helped, but it can never be helped merely by talking about it. We must act and act quickly. 11

Finally, in our progress toward a resumption of work we require two safeguards against a return of the evils of the old order; there must be a strict supervision of all banking and credits and investments; there must be an end to speculation with other people's money, and there must be provision for an adequate but sound currency. 12

There are the lines of attack. I shall presently urge upon a new Congress in special session detailed measures for their fulfillment, and I shall seek the immediate assistance of the several States. 13

Through this program of action we address ourselves to putting our own national house in order and making income balance outgo. Our international trade relations, though vastly important, are in point of time and necessity secondary to the establishment of a sound national economy. I favor as a practical policy the putting of first things first. I shall spare no effort to restore world trade by international economic readjustment, but the emergency at home cannot wait on that accomplishment. 14

The basic thought that guides these specific means of national recovery is not narrowly nationalistic. It is the insistence, as a first consideration, upon the interdependence of the various elements in all parts of the United States—a recognition of the old and permanently important manifestation of the American spirit of the pioneer. It is the way to recovery. It is the immediate way. It is the strongest assurance that the recovery will endure. 15

In the field of world policy I would dedicate this Nation to the policy of the good neighbor—the neighbor who resolutely respects himself and, because he does so, respects the rights of others—the neighbor who respects his obligations and respects the sanctity of his agreements in and with a world of neighbors. 16

If I read the temper of our people correctly, we now realize as we have never realized before our interdependence on each other; that we can not merely take but we must give as well; that if we are to go forward, we must move as a trained and loyal army willing to sacrifice for the good of a common discipline, because without such discipline no progress is made, no leadership becomes effective. We are, I know, ready and willing to submit our lives and property to such discipline, because it makes possible a leadership which aims at a larger good. This I propose to offer, pledging that the larger purposes will bind upon us all as a sacred obligation with a unity of duty hitherto evoked only in time of armed strife. 17

With this pledge taken, I assume unhesitatingly the leadership of this great army of our people dedicated to a disciplined attack upon our common problems. 18

Action in this image and to this end is feasible under the form of government which we have inherited from our ancestors. Our Constitution is so simple and practical that it is possible always to meet extraordinary needs by changes in emphasis and arrangement without loss of essential form. That is why our constitutional system has proved itself the most superbly enduring political mechanism the modern world has produced. It has met every stress of vast expansion of territory, of foreign wars, of bitter internal strife, of world relations. 19

It is to be hoped that the normal balance of executive and legislative authority may be wholly adequate to meet the unprecedented task before us. But it may be that an unprecedented demand and need for undelayed action may call for temporary departure from that normal balance of public procedure. 20

I am prepared under my constitutional duty to recommend the measures that a stricken nation in the midst of a stricken world may require. These measures, or such other measures as the Congress may build out of its experience and wisdom, I shall seek, within my constitutional authority, to bring to speedy adoption. 21

But in the event that the Congress shall fail to take one of these two courses, and in the event that the national emergency is still critical, I shall not evade the clear course of duty that will then confront me. I shall ask the Congress for the one remaining instrument to meet the crisis—broad Executive power to wage a war against the emergency, as great as the power that would be given to me if we were in fact invaded by a foreign foe. 22

For the trust reposed in me I will return the courage and the devotion that befit the time. I can do no less. 23

We face the arduous days that lie before us in the warm courage of the national unity; with the clear consciousness of seeking old and precious moral values; with the clean satisfaction that comes from the stern performance of duty by old and young alike. We aim at the assurance of a rounded and permanent national life. 24

We do not distrust the future of essential democracy. The people of the United States have not failed. In their need they have registered a mandate that they want direct, vigorous action. They have asked for discipline and direction under leadership. They have made me the present instrument of their wishes. In the spirit of the gift I take it. 25

In this dedication of a Nation we humbly ask the blessing of God. May He protect each and every one of us. May He guide me in the days to come.

[MrFlibble]

Obama strikes again, this guy and Bernanke should be held together in a brassiere

[Traktion]

My opinion is the US federal government can afford unbelievable amounts of new spending. With all the alleged prolifigacy investors are so afraid of US debt that they are demanding 2% yield if locked for 10 years.

Its hard for people to imagine this, because the paradigm is so different now. But I do believe its a new game.

So the kids of the future should pay to for the malinvestment of the adults of today? Why wouldn't the unborn kids vote against that? Ah yes, they can't...

EDIT: If parents tried to tie their children into debt bondage, there would rightly be an uproar at the abuse of human rights. Yet, the government does this all the time. Theft, violence and debt slavery are their specialities.

Edited September 9, 2011 by Traktion

[Self Employed Youth]

Does a bankster putting in a third outdoor heated swimming pool for his houseboy's poodle count as infrastructure?

In the UK he can get a GREEN insulation grant towards the pool.