DON’T ‘BUY’ THE ‘B.S.’

WASHINGTON — White House Press Secretary Jay Carney had some advice for reporters on Wednesday when it comes to covering President Barack Obama’s record on spending: “Don’t buy into the B.S.”

During a press gaggle aboard Air Force One, Carney read aloud from a MarketWatch story that says “the biggest whopper” being told about Obama is that he has been on a reckless spending spree since taking office. The Tuesday article, titled “Obama Spending Binge Never Happened,” says it is patently false to claim that Obama has presided over a massive increase in federal spending. To the contrary, the article says, the reality is that spending is rising at its slowest pace since President Dwight Eisenhower brought the Korean War to an end in the 1950s.

Why Portugal May Be the Next Greece

The worst is over for the euro zone, the experts say. But Greece isn’t really fixed and Portugal could become a second big problem before year-end

By MICHAEL SIVY

GETTY IMAGES

When Greece celebrated its Independence Day on Sunday, there were scattered protests over the harsh austerity program aimed at stabilizing the country’s finances. The government reportedly removed low-hanging fruit from bitter-orange trees along the parade route, so it couldn’t be thrown by protesters. But, basically, the most recent bailout appears to be successful. As a result, worries about the European financial crisis have diminished somewhat. Indeed, European Central Bank president Mario Draghi has said that the worst is over for the euro-currency zone.

Such optimism may be premature, however. Not only does Greece remain a long-term financial concern, but in addition Portugal is on track to become a second big problem.

The dangers Greece still poses are clear. Higher taxes and government-spending cuts may reduce new borrowing, but such austerity policies also undermine a country’s ability to pay the interest on its existing debt. Unless accompanied by progrowth policies, austerity can become the financial equivalent of a medieval doctor trying to cure patients by bleeding them. In addition, the bailout plan for Greece consisted of marking down the value of much of the country’s debt held by banks and other private lenders. That means entities such as the European Central Bank now hold most of Greece’s remaining debt. And so, in the event of a default, important international institutions would suffer the greatest damage.

(MORE: Is Germany’s Euro-Crisis Strategy Actually Working?)

The net result has been to postpone the Greek financial crisis for months or even a couple of years, while raising the stakes if things go wrong. That could be seen as a considerable achievement, if you believe Greece is a unique case and that the problem has been successfully contained. The trouble is that other countries — and especially Portugal — seem to be heading down the same path. Here’s why forecasters are worried:

The Real China Threat

China continues to snatch up precious natural resources while they’re still available. Will the U.S. step up before it’s too late?

 By STEPHEN LEEB 

Bundles of copper rods

Ordinary Americans and policymakers in Washington have plenty to worry about these days: unemployment, housing, deficits and debt, not to mention terrorism, wars and myriad foreign crises.

But there’s another looming issue that actually trumps those. It’s China’s push — while the U.S. sits on the sidelines — to amass the lion’s share of natural resources such as copper, silver and rare-earth elements, which are essential to renewable energies and are becoming scarcer and more expensive.

(VIDEO: America Wants in on China’s Clean-Energy Business)

Prices of these and many other key industrial materials have been in steady uptrends for a decade as supplies have tightened. They’ve remained high even despite the dreadful U.S. economy. Emerging economies, particularly China — which has become a voracious consumer of industrial materials — are behind the stunning growth in demand. One statistic: in 2011, Brent oil, the chief marker for oil, has been above $100 a barrel a record number of days; its average price for the year is likely to be an all-time high. And with China’s growth continuing, there’s no end in sight.

High and rising resource prices largely account for the decline in the American standard of living over the past decade. China, because it’s growing so rapidly, can simply absorb high and rising commodity prices as part of the cost of doing business. But the mature U.S. economy can’t. Those same price hikes impose an implicit tax on every American, hitting us in the wallet at all turns and choking the economy — while simultaneously constituting an inflationary force.

The only genuine path to sustainable economic growth in the U.S. is to make a full-scale transition to an economy based on renewable energies. This would be a huge effort requiring trillions of dollars. But we need to launch it now — we can’t put it off until later. Building a sufficiently large renewable-energy infrastructure requires huge inputs of natural resources, and they won’t always be there for the taking.

Brits Spending £9 Billion A Month Paying Off Debts

The minimum hourly rate increased by 13 p after many years and price increasing in every sector. Almost 2.5 million struggling to find job and having job seeker allowance, many companies closing down. How to see future in UK in these contexts?
Read the Article at HuffingtonPost

Boehner Debt Bill Passes House, Gets Defeated In Senate (UPDATE)

This is the war not with other countries, but within the country.
Read the Article at HuffingtonPost

Paul Krugman: ‘Strong Chance’ U.S. Economy Will Worsen

Not surprised, because America is investing billions and billions dollars every year in Afghanista­n, Libya, and so on for unproducti­ve activities rather than to create jobs for jobless in own country. And due to that it has to consider billions and billions dollars for security purpose
Read the Article at HuffingtonPost

Japan Earthquake 2011: Cabinet Approves Nearly $50 Billion In Spending For Post-Earthquake Rebuilding

This wonderful country spoiled a lot due to this dreadful tragedy, however; this country will be able to do everything to bring the country in a normal stage soon.
Read the Article at HuffingtonPost