The Deficit Reduction

It is more than time for the Congress to reduce subsidies, like for owner of executive jets, deduction of interest on mortgage on yachts, subsidies on ethanol that just make the price of corn to get higher generating inflation, reducing subsidies on agriculture, specially after more than 3 years, and specially the last 2 with great profits for farmers due to very high prices of grains and other farm products. Why not increase tax on cigarettes? And alcohol? People won't smoke or drink less, but will increase government revenues.

Obama and the debt limit negotiation and budget deficit

Obama inherited a heavy burden. People forget that he took-up a crisis that exploded 1.3 years before he took office. People forget that the government helped most of the banks and insurance companies, specially AIG. It is true that Obama should have done more and applied funds more effectively while he had majority in Congress. Wasted opportunity. It is also true that he is not a leader (my opinion and I am in the minority), and it is also very true that he was a community organizer and had never been an executve, of corporation, or mayor, or governor, therefore totally without executive experience (and so didn't have McCain). First Obama spent too much time with the healthcare program, well this was his aim and so many presidents, including Reagan and other republicans failed. Then he spent too much campaigning, after he took office, being all the time on TV and traveling instead of working hard and focusing on the existing problems, then he continued trying to accomodate situation instead of taking up leadership and making things happen.
Well, having said that, now, mid July, it is time for him to slam the desk and be a leader, say with clear voice that the debt limit needs to be increased and the consequences of what would happen, as Geithner did a few days ago, and then he needs to be clear that it is not possible to reduce deficit only cutting expenses, in the middle of a recession or very slow recovery, and don't eliminate the non-sense benefits and subsidies, not say actual tax increases.
Mr. President, it is time for you to take office and stop campaigning.

Reducing Interest Rates?

News today are that Wall Street's specialists and economists and experts are saying that Barnake is too soft in facing the slow-down in the economy and increase in unemployment, and want the Fed to reduce interest rates further. They expect that by the end of 2008 the interest rates determined by the Fed should be 3%... The interesting part of the news is that one factor is totally omitted - that the inflation rate is going up. Less interest rates would boost the stock market but will also allow more financing, more consumption and real estate buying based on credit and the inflation will go further up. Isn't that what Greesnpan did and isn't that one of the reasons for the present poor economy? Bernake should not lower interest further or maybe only slightly but keeping a sharp eye on the inflation. If inflation goes up, and it will go up anyway due to the price of energy (mainly oil) and the weak dollar, it will hamper the net income of the 90% majority of the families in the USA that earn less than $40000-$60000/year and therefore will buy less and consequently the economy will continue being week. There is no strong and healthy economy with inflation - the worst evil in a society. Bernake shall not succumbe to the influence of wallstreeters who are not subject to reduce their way of living due to lower income caused by inflation and shall think in the health of the economy - specially with low inflation.

Press Conspiracy

We just had the Iowa Caucus and today the New Hampshire Caucus... In the last few weeks and specially in the last few days the press is hammering on Hillary Clinton. If one watches carefully it will be seen that no other candidate is so much in the spotlight, negatively. No other candidate has been more questioned as Hillary. Obama Barak on the other hand has been given the main floor and space, he has been heralded as a savior, the person who can make changes. Really? With so much experience as a Senator? And what about his executive experience? Here is my theory. The press wants Obama to win as he will be easier to be defeated by the Republican candidate. Is America ready to a woman president? I don't think so ...

Greenspan

It was in 1998 (I believe) that Allan Greenspan mentioned the term "irrational exuberance". I totally agreed with him. What I didn't agree was that he said it publicly. I don't think that the governor of the Fed, or any president of Central Banks, shall go public and specially say anything that can influence the market. From that day on I have been a anti-Greenspan. I have been only one of a very few as Greenspan was put on a pedestal above any mortal. Later on I criticized Greenspan for holding interest rates too low for too long... specially just before the last presidential election, helping pres. Bush to be re-elected. Today it has been more common to read criticism to Greenspan while he was the governor of the Fed. Too bad that people look mostly at their own interests than at policies that sooner or later will affect us all. Greenspan is now retired, making millions with his books and speeches. I watched him the other day on TV... sorry folks, I can't stand him.

Condolleza Rice

Condi Rice was in the "war team" as special adviser to Pres. Bush. The she sided with Collin Powel and collided with Rumsfeld. She became Secretary of State in the 2nd. Bush term. Condi Rice became a major force in the US government is straighten things out in the world. Iran slowed down their nuclear program and specially talking about it, an agreement with North Korea has been set forth and the world seems to be quiet down lately. I do believe that Condi Rice has been behind the scenes working quietly in putting order in the convoluted world created by the invasion of Iraq. Condi Rice for president?!?!?

Pres. Bush and Israel

Many of my friends that took the unfortunate decision to vote for Pres. Bush and had as one of the reasons that he was the best friend of Israel may be wondering. In January 2008 Pres. Bush will go to Israel to try to convince the Israelis to give up the East side of Jerusalem to the Palestinians, so that the Palestinians can have their capital there ... regardless of the political decision in going on that path, is Bush a real friend of Israel? Or were people eluded by his bellicosity's in name of defending Israel? I told you so ...