Obama on the wave of glory of the inflation tax
Some analysts have already started to praise the results of Obama budget policy that is making a decrease in the deficit. It looks as if USA finally has found the right way to avoid fiscal and debt crash. And in fact they are right.
But from this point of view they were wrong that it generally existed any danger of default. In fact it never existed, when putting in calculation the right of USA to print a globally accepted currency. Because in fact this is the right reason of improving the budget situation. With printing press in FED, USA can always repay its debt as it is issued in dollars and USA can produce dollars.
Wall Street in a rapid confusion
Rapid moves on markets are usual around the moments of reversing the trend. Yesterday we saw the most rapid movement down on almost all stock exchanges. Some of the losses of some companies were later partially or entirely compensated. Anyway movements of 2-3% in one day are a symptom of a serious change.
Read more...Who is buying the new Greek debt?
Looking for… a lender to give me $4 billion on an interest of 5% and real probability to get back about half of them. Yea, it will be a great deal for me, it is not this the point. I will not complain. I am just looking a candidate for lending…
If you think I have overdone with alcohol, don’t be so rude. I am just hoping the same chance as Greek government received today. Yes, they succeeded in selling 5-year securities at a price of less than 5% yearly interest. It is not a joke. The same Greece that received 300 billion euros in bailout funding and still owes this money to its creditors. By the way – these creditors are privileged ones and will have their money before any other investor, including the brave buyers of today’s emission. The same Greece that dragged down with her Cyprus, which banks crashed due to unpaid old Greek debt. In Cyprus are still active capital outflow limitations that had to be “temporary”.
$21 million from the Government for a doctor
Have you ever heard the name Semashko? It is good to read about it today – when the government for the first time in history published information about payments to doctors through Medicare program. Yes, it is time to read about Nikolai Semashko – Stalin’s minister (commissioner) of health that established may be the only proven as working health-care model in history.
Current dominating in west world model is a hybrid of free market and government intervention. The main result of it is as a whole – extracting public funds to private pockets. The latest case with doctors that earned millions per year from Medicare, with a record of $21 million, just illustrated the thinking in the system. A system where the government pays to private subcontractors for medical services. In this system everyone has interest of increasing the expenses. Doctors want more money for them, and share part of it with government officers that have to control this. This system can lead to nothing else than to a bankruptcy of the public fund.
IMF = execution squad in Ukraine case
In Eastern Ukraine is going a replay of the Crime scenario with pro-Russian protesters taking government buildings, declaring “independence” and announcing referendums for joining Russia. It is obvious at the end Russia will have to accept this and annex the problematic regions. And it is logic the West and the coup d’état government in Kiev to blame Russia for “provocations”. But the real problem is not with Russia. It is with the West.
