Sunday, July 17, 2011

Spending Reduction Negotiations Between Republicans and Democrats

Can you name which of these two characters is the Republican and which is the Democrat?

Saturday, July 16, 2011

Credit Rating services try to insert themselves in budget battle

According to the Los Angeles Times "Moody's and Standard & Poors warned this week that they might soon cut the government's top-rung debt rating because of the political battle over the debt ceiling and spending cuts. " The headline here is not that our credit rating may be cut, everyone is well aware of the issue. The headline is that the credit rating agencies are, through the press, trying insert themselves into the issue. Why?

If we do not increase the debt limit, neither Moody's or Standard and Poors know if we will default on payments. Someone may not get paid or unneeded and redundant agencies may have to shut down. The politicians may even come to some sort of agreement and raise the limit. By inserting themselves, these organizations are trying to increase their power over the government, businesses and individuals.

The economic well being of our country is in the productivity of its workers and businesses. If government tends to the business of business the economy will grow and it will not make any difference what Moody's or S&P have to say. The money will flow in.

Keynes vs. Hayek

The fight of the century.The political debate of today is an old one. It should be a good one but Keynes has been proved wrong repeatedly. It is a shame we continue to have this debate: