Companies, Not Fed to Blame

On Bloomberg, David Malpass says the Fed is failing because the Fed in giving money to US business by keeping interest rates low, but US business is investing in Asia. So, the Fed is just giving American money to Asia. Although there is truth in this, I would say the problem is American business that doesn't support America. CEOs and other senior executives of “American” companies outsource American jobs to China and India. The CEOs get rich by destroying American workers.

Impolite Politicians

Political discourse has become so bitter, it's hard to see how anyone can remain civil.

Last night I was shocked at how impolite Sen. Orrin Hatch was to Judy Woodruff on PBS' Newshour. He insulted HHS Secretary Sebelius, saying, "She just doesn't know what she's talking about." He was sarcastic, responding to one of Judy Woodruff's questions with, "Oh, isn't that wonderful?" And, "That's what I call bull corn." And later, "I see a middle ground.... They ought to trash the bill and get rid of it."

Interestingly, the New York Times had a tongue-in-cheek op-ed today on a civility course on Arizona. If there were such a thing, Sen. Hatch and his colleagues should enroll in it.

Government Shutdown Coming?

The NYT reports that talk on Capitol Hill is increasing the odds of a government shutdown. This brings back some bad memories of my experience in Poland, when the Republicans shut down the government on the day I was being transferred to Italy, leaving me stranded with no place to live and no income.

I wonder what the reaction will be to a government shutdown. Perhaps people will welcome it. I won't because I think there is a better way to resolve these problems of the deficit and the debt. The Congress and the administration should work out some sort of a compromise, either temporary or permanent, without shutting down the government.

Angry Letter to Congressional Delegation

I am disappointed that President Obama and the Democrats have apparently decided to take small steps towards balancing the budget by crushing the middle class, transferring the middle class' money to the super rich.

We see middle and lower class programs proposed for cuts, while taxes are reduced on the super rich. A recent report by ABC News on hedge fund manager John Paulson's multi-billion dollar payday last year indicated that most of his taxes will be at the capital gains rate; so, all the debate about the top tax rate is irrelevant. Rich people don't pay "income tax" (35%) for most of their income; they pay the much lower (15%) "capital gains" tax rate. John Paulson reportedly made most of his billions last year by betting on gold, i.e., against the US dollar. He made his first billions betting against the sub-prime housing market. Are these really socially valuable activities that deserve to be taxed at half the rate that working people pay?

Last night on PBS' Newshour, Sen. Bernie Sanders said that ExxonMobil paid no income tax last year, although it made $19 billion. If the Republicans succeed in cutting off funding for PBS, I won't see that anymore.

The Republicans always argue for a simpler tax code, but that's because they want to avoid paying taxes. Under a simpler tax code, every lunch will be a business lunch; every country club membership will be for business purposes, and every trip to Hawaii will be a business trip. Republicans want bigger swimming pools; they don't want to buy helmets for troops in Afghanistan. I guess Democrats are hoping that the Republicans will invite them over to enjoy the new, bigger swimming pools.

The Tea Party is angry. Well, now I'm angry, too. Unfortunately, I don't have billions to pay a lobbyist to bribe you. I understand that as a politician you have to prostitute yourself to the big money, but remember that even some whores have standards. See Julia Roberts in "Pretty Woman."