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Mark’s column is on the new front in the war on terror – the tea parties.
I suppose the thinking runs something like this. All things considered, the polls on Obamacare aren’t totally disastrous, and the president’s approval numbers seem to have bottomed out in the low forties, and when you look at what that means in terms of the electoral map this November, you’ve only got to scare a relatively small percentage of squishy suburban moderate centrists back into the Democratic fold, and how difficult can that be?
Hence, Bill Clinton energetically on the stump, summoning all his elder statesman’s dignity (please, no giggling) in the cause of comparing Tea Partiers to Timothy McVeigh. Oh, c’mon, they’ve got everything in common. They both want to reduce the size of government, the late Mr. McVeigh through the use of fertilizer bombs, the Tea Partiers through control of federal spending, but these are mere nuanced differences of means, not ends. Also, both “Tim” and “Tea” are three-letter words beginning with “T”: Picture him upon your knee, just Tea for Tim and Tim for Tea, you’re for him and he’s for thee, completely interchangeable.
To lend the point more gravitas, President Clinton packed his reading glasses and affected his scholarly look, with the spectacles pushed down toward the end of his nose, as if he’s trying to determine whether that’s his 10 a.m. intern shuffling toward him across the broadloom or a rabid armadillo Al Gore brought along for the Earth Day photo op.
Will it work? For a long time, Tea Partiers were racists. Everybody knows that when you say “I’m becoming very concerned about unsustainable levels of federal spending” that that’s old Jim Crow code for “Let’s get up a lynching party and teach that uppity Negro a lesson. …
Tunku Varadarajan takes a dim view of the helter skelter push for financial reform.
… But Obama’s invitation to debate, here, is akin to his conversation on health-care reform: It is a call to all to come to him, and to drink deeply of his wisdom. Of a piece with this method is Harry Reid’s assertion Thursday that he will move ahead with a vote on financial reform as early as Monday: “I’m not going to waste any more time of the American people while they come up with some agreement,” Reid said, of the Republicans. “The games of stalling are over.”
Yet ill-conceived reform would be just as bad as no reform at all, and the Republicans have every reason to resist knee-jerk legislation fueled largely by a populist consternation with the way Wall Street does business. As the sage Martin Wolf wrote in the Financial Times Wednesday, “halting the financial doomsday machine is going to involve fundamental changes in policy towards—and the structure of—the financial system.” …
O’Rourke nails it. Why it’s so annoying to be governed by a bunch of A students.
… America has made the mistake of letting the A student run things. It was A students who briefly took over the business world during the period of derivatives, credit swaps, and collateralized debt obligations. We’re still reeling from the effects. This is why good businessmen have always adhered to the maxim: “A students work for B students.” Or, as a businessman friend of mine put it, “B students work for C students—A students teach.”
It was a bunch of A students at the Defense Department who planned the syllabus for the Iraq war, and to hell with what happened to the Iraqi Class of ’03 after they’d graduated from Shock and Awe.
The U.S. tax code was written by A students. Every April 15 we have to pay somebody who got an A in accounting to keep ourselves from being sent to jail.
Now there’s health care reform—just the kind of thing that would earn an A on a term paper from that twerp of a grad student who teaches Econ 101.
Why are A students so hateful? I’m sure up at Harvard, over at the New York Times, and inside the White House they think we just envy their smarts. Maybe we are resentful clods gawking with bitter incomprehension at the intellectual magnificence of our betters. If so, why are our betters spending so much time nervously insisting that they’re smarter than Sarah Palin and the Tea Party movement? …
David Malpass in Forbes says Washington is possessed.
My Nov. 10, 2008 column warned that big government was walking away as the knockout winner over the private sector in the financial crisis. But it’s going much further than I’d feared. The federal government has accelerated its takeover of the economy, adding a mega-trillion-dollar health care entitlement, despite the damage to health care and the national debt this will cause. Washington is frenetically cutting unfunded checks. Capital is being channeled away from small businesses toward big government. Looming on the horizon is the bailout of state and local governments, which will concentrate more and more of the nation’s debt onto the diminishing base of federal taxpayers.
Washington’s excess spending is now running $1.5 trillion annually, and both the Treasury and the Federal Reserve are relying heavily on short-term credits for funding. The marketable national debt has ballooned to more than $8 trillion, but wait … the Obama Administration has budgeted an increase to $20 trillion over the next few years, bringing it to more than 90% of GDP. Even that huge sum–$100,000 for every working-age American–doesn’t include the rapidly escalating debts of Fannie Mae and Freddie Mac or the government’s unfunded liabilities for Social Security and Medicare. And to keep the debt estimate down the budgeteers are making wishful assumptions that millions of high-paying jobs will reappear and health care reform will pay for itself.
Every month Congress adds more federal powers and debt, voting as if its allegiance were to Washington, city of cranes, instead of to the voters and taxpayers. …
And Bill Gross from the bond-dealer Pimco knows who has possessed Washington; people who cannot stop spending and borrowing. Joel Achenbach from WaPo has the story.
Bill Gross is used to buying bonds in multibillion-dollar batches. But when it comes to U.S. Treasury bills, he’s getting nervous. Gross, a founder of the investment giant Pimco, is so concerned about America’s national debt that he has started unloading some of his holdings of U.S. government bonds in favor of bonds from such countries as Germany, Canada and France.
Gross is a bottom-line kind of guy; he doesn’t seem to care if the debt is the fault of Republicans or Democrats, the Bush tax cuts or the Obama stimulus. He’s simply worried that Washington’s habit of spending today the money it hopes to collect tomorrow is getting worse and worse. It even has elements of a Ponzi scheme, Gross told me.
“In order to pay the interest and the bill when it comes due, we’ll simply have to issue more IOUs. That, to me, is Ponzi-like,” Gross said. “It’s a game that can never be finished.”
The national debt — which totaled $8,370,635,856,604.98 as of a few days ago, not even counting the trillions owed by the government to Social Security and other pilfered trust funds — is rapidly becoming a dominant political issue in Washington and across the country, and not just among the “tea party” crowd. President Obama is feeling the pressure, and on Tuesday he will open the first session of a high-level bipartisan commission that will look for ways to reduce deficits and put the country on a sustainable fiscal path. …
Remember last week GM’s CEO trumpeted the payback of debt? Would you be surprised to learn that was a lie? Shikha Dalmia has the details for Forbes.
… But when Mr. Whitacre says GM has paid back the bailout money in full, he means not the entire $49.5 billion–the loan and the equity. In fact, he avoids all mention of that figure in his column. He means only the $6.7 billion loan amount.
But wait! Even that’s not the full story given that GM, which has not yet broken even, much less turned a profit, can’t pay even this puny amount from its own earnings.
So how is it paying it?
As it turns out, the Obama administration put $13.4 billion of the aid money as “working capital” in an escrow account when the company was in bankruptcy. The company is using this escrow money–government money–to pay back the government loan.
GM claims that the fact that it is even using the escrow money to pay back the loan instead of using it all to shore itself up shows that it is on the road to recovery. That actually would be a positive development–although hardly one worth hyping in ads and columns–if it were not for a further plot twist. …
More on Iceland’s volcanoes. This time from the Economist.
… And Katla is not the only game in town. Iceland has others capable of even greater nastiness. The eruption of Oraefajokull in 1362 may have been almost as large as that of the Philippines’ Mount Pinatubo in 1991, which was the largest eruption of the 20th century. The Laki eruption of 1783 sent poisonous gases far and wide across Europe. And there is evidence that some of the island’s volcanoes, especially those under the central ice cap, (which, other things being equal, will produce more dusty and explosive plumes if they break through) may be in cahoots, their average activity rising and falling in a cycle of about 130 years. On this analysis, the past few decades have been one of the quiet patches. It seems likely that the first 50 years of jet travel across the North Atlantic enjoyed, in historical terms, particularly clear skies.