Fish Leong why the President of praise by the state?

Fish Leong why the President of praise by the state?
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Wang Huabin

How does the U.S. economy ice cream in a cup towards full bankruptcy David Blackman A Stora New York Times, April 4, 2013 http://cn.nytimes.com/article/opinion/2013/04/04/c04stockman/ week four, the Dow Jones (Dow Jones) and Standard & Poor's 500 Index (Standard & Poor's ice cream in a cup 500) are breaking records, the stock market since 2007, the last peak of the losses ice cream in a cup suffered since being swept away. But we should not do this caper, but should be very worried. Over the past 13 years, the stock market collapse and trigger twice Recession: American families in 2000 when the Internet bubble burst in the loss of $ 5 trillion, and the real estate crash in 2007 lost more than 7 trillion U.S. dollars. I expect that the recent Wall Street bubble will burst in the next few years, the Wall Street bubble is by the Fed (Federal Reserve) issue a large number of malicious short money blowing up, not based on real economic growth. Since the S & P 500 index in March 2000 for the first time to reach the current level, the Fed's printing presses have been crazy to their balance sheet expansion sixfold ice cream in a cup (from $ 500 billion to $ 3.2 trillion). However, in this period, the average annual economic output increase of only 1.7% (which is the slowest growth rate since the Civil War); commercial ice cream in a cup real annual growth rate of only 0.8% investment; annual growth ice cream in a cup in the number of formal jobs only negligible 0.1%. Median household real income growth of 8 percent decline, the number ice cream in a cup of middle-class full-time jobs fell by 6%. Income ice cream in a cup "minimum" 90% of the true value of the population fell by a quarter. Receive food vouchers and disability assistance has more than doubled the number of people, reaching 59 million, accounting for about one-fifth of the U.S. population. Seen in this light, the real economy continues to decline, while Washington is constantly piling on debt to future generations, there is no ability to control the war budget, or welfare spending, can not afford to raise taxes needed to pay the national debt. Naturally, the Fed has not been used to appeal to the radical measures began wantonly printing. However, a substantial increase in the mobility not only failed to stimulate ice cream in a cup bank loans or corporate spending, ice cream in a cup but has been trapped in the abyss of Wall Street, they are fermented into an unsustainable bubble. Once this round bubble burst, Bank of America will no longer be like 2008 a new round of rescue. Instead, the U.S. will fall into a zero-sum austerity intertwined with vicious political conflict era, and even the current economic growth, small scars will disappear. This imbalance outlook from the Government abuses. Over the past 80 years, apart from a few brief interruptions outside the United States ice cream in a cup have been pursuing getting crazy fiscal and monetary intervention policy ice cream in a cup in an attempt to counter the cyclical ice cream in a cup problem ice cream in a cup of the free market, and reduce job opportunities and possible trends ice cream in a cup in economic output . Cost of doing so is very heavy. The federal government and its central bank partners Fed tried another one goal - streamline the business cycle, inflation and unemployment at the same time will minimize the spread great social safety net, improve homeownership rates and provide medical subsidies, support traditional industries (agriculture, automotive industry) and promote new industries ("clean" energy, ice cream in a cup bio-technology) development, the most important is to provide relief to Wall Street. Today, they have been too heavy a load, too much pressure and the strong interest groups peripheral tight overwhelmed. In about stimulating "demand" empty ritual incantation in the United States to pursue modern Keynesian has gone bankrupt, paralysis, caught in the mud, even if it gave birth to a way to let the richest 1% of the population regularly shaped reap speculative profiteering crony capitalism . Parties are the culprit, but you never considered by everyone ice cream in a cup from those of today in the political agenda blather guessed it. Government abuses began in 1933, when Franklin D Roosevelt (Franklin ice cream in a cup D. Roosevelt) chose not to fiat money (not in gold-based monetary reserves), the field of economic nationalism and capitalism combined industrial and agricultural enterprises. During World War II (WWII's contribution to ending the Great Depression is far stronger than the New Deal) the critical moment, the U.S. government has become extremely bloated expansion, but it is remarkable that, in Dwight D Eisenhower (Dwight D. Eisenhower) in charge of the White House and Little William McChesney Martin (William McChesney Martin Jr) in charge of the Fed's mid-20th century, the United States ushered in a sound monetary and fiscal rectitude golden ice cream in a cup era, such expansion whereby a brief stop. Next, Lyndon B President Johnson (Lyndon B. Johnson) brought "guns and butter" policy excesses, to the 1971, in a treacherous weekend at Camp David, Maryland, this tendency has been further strengthened. At the time, Richard M Nixon (Richard M. Nixon) final between gold and the dollar can not be converted, substantially equal to repudiate the national debt. The move - can be said to be more serious than Watergate sin - means the downfall of the country's financial discipline and up to 40 years carnival begins. In these 40 years, we lived in luxury, the cumulative current account deficit to as much as $ 8 trillion. In fact, the United States ice cream in a cup experienced an internal ice cream in a cup leveraged ice cream in a cup buyouts, putting a total debt (public and private) and the ratio between the economic output from the historical level of about 1.6 to about 3.6. Thus came the $ 30 trillion of excess debt (total debt exceeded $ 56 trillion in half), still threatens the U.S. economy. This explosion of debt is the product of liquidity trick, this game is Milton Friedman (Milton Friedman) Nixon Goni invention. Friedman is a hero of the so-called free market economy, in fact it is the endless expansion of the money supply, sowed the seeds. This year celebrates the centennial of the Federal Reserve in the 1970s contributed to the extreme inflation ice cream in a cup of goods and commodities, thanks to Paul A Volcker (Paul A. Volcker) iron will, so that the situation was under control. Volcker in 1979 to 1987 Fed chairman. In his successor, disgraced hero Alan Greenspan (Alan Greenspan) under the management of the Federal Reserve to Friedman's monetary expansion that weak rules aside, at long time, the Fed put Interest rates remain at low levels, and to inject a lot of new issues on Wall Street money. And ultimately to the "Greenspan" (Greenspan put) named 1998 as the Federal Reserve Bank of philosophy of hedge fund Long Term Capital Management (Long-Term Capital Managemen) assistance in this unforgivable act, which has been strengthened. "Greenspan put" refers to the Fed's unwritten promise that if the market in asset prices, it will intervene, as they occurred in the 1987 stock market crash after doing that. Greenspan's ice cream in a cup loose monetary policy, why did not lead to inflation, simply because the price of domestic goods and labor from Asian factories are a large number of imported products are suppressed. ice cream in a cup By offshoring U.S. tradeable goods business, the Federal Reserve curb the consumer price index (Consumer Price Index), but the consequent excess liquidity has also led the field of financial asset prices soared. Greenspan's connivance gave birth to the most prosperous in American history stock market, stock market crash occurred since 1987 to 2000, the Internet bubble burst, the U.S. stock index rose fivefold. ice cream in a cup Americans will soon stop savings, spend what they earn every penny of each and able to borrow money. ice cream in a cup By the 1997 Asian financial crisis hit the country is also very fit. These countries, especially ice cream in a cup China and Japan, has accumulated a large amount of dollar reserves, their central banks into a series of currency "catch cockroach box", where the sovereign debt not only into. We have been relying on borrowing for survival, but also in Asian lent money to spend. This change reinforces the Reagan camp stereotypes that "the deficit does not matter", it also reinforces the reality that the United States' publicly ice cream in a cup held, "the $ 12 trillion national debt, there are nearly ice cream in a cup 5 trillion ice cream in a cup national debt is actually hidden in the central banks insurance Curry. In Ronald Reagan (Ronald Reagan) implemented within any number of strikingly initiatives, is far from prudent fiscal consequences of the most serious ice cream in a cup one, which is as the Reagan ice cream in a cup administration budget director ice cream in a cup in 1985, I resigned a reasons. This is the Republicans completely abandoned Calvin Coolidge (Calvin Coolidge) balanced budget policy to create a model, but also to George W Bush embarked on a road of no return, he used two expensive wars without just cause, the federal health insurance (Medicare) is expanding rapidly, as well as a series of tax cuts for the rich, the U.S. sent into bankruptcy. Washington lobbyists have become a national tax policy for the actual manipulators. Republicans indeed ice cream in a cup pursuing Keynesian, but this is for the rich Keynesianism. The explosive growth of the real estate market, we have a lot of detailed records. False credit rating of securities fraud, and mortgage lenders, the original creditor and brokers intentional improper operation helped sparked this growth. More well known is that, as of 2008, eight years, the Wall Street bank's balance sheet, the top ten large-scale expansion. Although the bank's meager capital almost no growth, but they are unstable "hot money" but in dependence soaring, this is because, from the Great Depression ice cream in a cup (Depression) outstanding ice cream in a cup during the regulatory weapon "Glass - Steagall Act." (Glass-Steagall Act) was completely abolished. September 2008, Lehman Brothers (Lehman Brothers) bankruptcy, Wall Street put the gun against his head in Washington, which began within a few weeks to a devastated financial sector transfusion, the implementation of a lot of panic disorder rescue ice cream in a cup and India banknote action. This is the American financial history of the most shameful chapter. And in 2006 served as chairman of the Fed S Bernanke (Ben S. Bernanke) issued a serious warning ice cream in a cup the contrary, the threat was far less than "the new version of the Great Depression" or "financial nuclear winter" level. "Great Depression" (Great Fear) is purely Wall Street's own making, it failed to vote in the House "Troubled Asset Relief Program" (TARP) ice cream in a cup after the stock market plunged, the House of Representatives ice cream in a cup and later to make concessions, and ultimately adopted the rescue plan . If President Bush and his Goldman Sachs (Goldman Sachs) Consultant (ie Treasury) M Little Henry Paulson (Henry M. Paulson Jr.) Stand firm, to quell the crisis itself, and let the speculators assume they deserve loss. Entity banking system has never in serious crisis, automated teller machines will not shut down, the financial industry will not collapse from within. However, just the opposite, the White House, Congress, the Federal Reserve, the Bush and Obama the next president to take risks, to take a series of reckless initiatives, which not only unnecessary, but also bring bad consequences. For example, ice cream in a cup the automotive industry is nothing more than aid in the workplace shattering - especially to the aging of the population, but there are important electoral significance of the "rust belt" fill - but did not keep the job. Obama's economic stimulus plan "green energy" part of the capital is to nearly $ 1 billion away to crony capitalists, such as venture capitalist John Doerr (John Doerr) and a self-proclaimed space dreamers elon Musco ( Elon Musk) and his ilk, the purpose is to create a new toy for the rich. Obama's $ 800 billion economic stimulus plan, less than 5% of the flow of the real need food stamps and labor income tax credit and other forms of poverty alleviation programs of the crowd. Has become a lavished most of its state and local governments a lot of money, political spoils-style infrastructure projects, business tax loopholes and indiscriminate ice cream in a cup white middle-class tax relief. Democratic Keynesians, like their Republican colleagues intelligence depletion (although less than the latter so hypocrisy), they borrowed money to consumers, hoping that they buy a lawn mower, flat screen TV, or at least go to Red Lobster (Red Lobster) what the next restaurant, in addition to simply do nothing. But even Obama can not hopelessly reckless policies of unbridled par with the Fed, which cut interest rates to zero, then an astonishing $ 600 million per hour speed printing new currency. ice cream in a cup Thanks to the Fed, short-term speculators have been "bought" a large number of government bonds and mortgage-backed securities, almost entirely based on actual use of zero short-term interest rates to borrow overnight funds. Bernanke uncle let them well-paid. ice cream in a cup The Fed now vowed, as long as the inflation rate does not exceed 2.5%, they will be able to push the unemployment rate below 6.5%, but the agency even if only implied to be reduced balance sheet, can also cause selling frenzy, because bond prices even is slightly decreased arbitrageurs will wipe out profits. Although Bernanke ensure that the final will gradually ice cream in a cup smooth exit, the Fed has to create their own monetary policy exposure among prison. Blind adjustments in the Fed, Congress is worried. Prides itself on fiscal hawks, the House Budget Committee (House Budget Committee) Chairman Paul D Ryan (Paul D. Ryan) did not dare reveal the truth: the 10-year deficit is actually ice cream in a cup $ 15 trillion to $ 20 trillion of room, much higher than the Congressional Budget Office estimated $ 7 trillion. According to the latest estimate of the Congress, the next 10 years will emerge 16.4 million new jobs, but only in the past 10 years there have been 2.5 million new jobs, this figure ice cream in a cup is just more extreme paranoia Washington an example. Even the so-called "bold" measures - the Social Security benefits of living adjustments and inflation index linked to another - only in 10 years time to save $ 200 billion, less than the deficit of 1 %. Ryan's ice cream in a cup latest budget shamelessly let the Social Security and Medicare ice cream in a cup benefits, although these two social welfare programs for the nearly $ 19 trillion a considerable portion of the costs to be wealthy to enjoy old age class.