We are approaching the inflection point. No female, nor African American/Hispanic/Asian/American Indian, nor Gay head of the Federal Reserve will solve the problem. The PONZI bubble has to collapse due to the natural law of gravity.
If she had indeed said that, then it simply means that she does not have a clue about practical economics. She is a dud.
The simplest term to describe the dark side of the Securitization process is "Moral Hazard": if some of the the participants can keep the profit and pass on the risk, then they have the incentive to securitize everything under the Sun.
I am in favor of universal healthcare for everybody, poor or rich.
However, Obamacare might not last long without significant cost cutting, given the current US financial situation. Maybe late 1990s was the best time to implement such policy.
There is no contradiction. $39 trillion deficit is the difference between future projected liabilities and receipt over infinite time horizon. While the $2+ trillion surplus is the difference between the receipt from SS tax on wages and the payment during the past few decades.
The surplus is due to the fact that there are currently more workers to support the retirees. But that dynamic will change as the population ages.
Will the gender of the head of Federal Reserve change the dynamic of sluggish economic growth?
The answer is obvious: did the color of the US president bring the peace to the world?
We all should applaud Obama's decision to nominate the first female head of Federal Reserve in history.
But if you wonder whether that superficial fact will bring any fundamental changes to Fed policy and US economy, then consider the changes that have been promised and achieved by the first African American president and Nobel Peace Prize winner in history.
You will hear many "first in history" in the future, only because US has only about 250 years history. The market might choose to focus on the gender of the new fed chairman for one day or two, but it has to come back to reality soon enough: failed mission of QEs, perpetual fiscal deficit, ballooning sovereign debt, etc.
It looks like that Yellen could be the first female head of Federal Reserve to oversee the final unwinding the massive PONZI scheme in the recorded human history.
People forgot about this, until they do not receive the SS Payment.
The PONZI game is struggling.
There is no contradiction. Your $39 trillion is the unfunded future liabilities given the infinite time horizon, due to demographic shift and other factors.
The $2 trillion plus is the money already paid into the SS Trust Fund. Every time you receive a pay check, about 6% of the fund was deducted and then deposited into the SS Trust Fund. For a given year, if receipt from employed workers more than cover the payment to the retired workers, then a surplus is recorded. Over many decades, there is about $2 trillion plus surplus accumulated in the Trust Fund.
The point is that there is currently no money in the SS Trust fund, only $2+ trillion IOU written by the US Treasury.
Does it help to assign the blame on such a colossal blunder to a political party?
It does not matter how we got here. We need to resolve it, otherwise, things could get even worse.
Where is the long-term solution for the perpetual fiscal deficit and the ballooning debt problem?
It is funny that I did not even hear any buzz about this topic, except from Senator Portman.
Whether to raise the debt ceiling is a fake argument because it has to be raised for now.
However, if there is no long-term solution for the malaise of perpetual fiscal deficit and ballooning debt, then the ultimate default is a mathematical certainty.
Without long-term solution to the debt malaise, the eventual default of US sovereign is only a matter of time, probably within five years.
I thought that SS has a trust fund, which holds all the contributions made by the workers during the past few decades, and I thought that there is still a $2+ trillion surplus in the SS trust fund, enough to pay the benefit for many years to come. How come the SS payment should be adversely affected by the fake "debt ceiling"?
Will the fake "shutdown" drag on to Oct 17?
Maybe. If that happens, we might find that the so-called "debt ceiling" is also a fake concept.
The Oct 17 deadline is only a distraction. The eventual default of US Sovereign debt increasingly becomes mathematical certainty.
The US debt situation is really hopeless. I do not believe Darth Vador would be willing to take ownership of this giant PONZI scheme.
However, he can probably procure a massive clone army, and take over the control of DC, and then reset the financial system. ;-))
If this is true, maybe he will garner some support among regular people. Do you agree?
Maybe this time around, even a 500-point-drop in DOW will not scare anybody.
The current fake debate about the "debt ceiling" is a distraction from the real issue: the long-term solvency of the US finances.
The short-term risk of default could be solved by the agreement between the Congress and the Whitehouse. But unless there is a viable long-term solution, the willingness of eventual default on the US Sovereign Debt is clear and present.
Obama serves his Wall Street sponsors: continue to spend the money we do not have to support the artificial PONZI market, in stead of implementing a long-term solution to the runaway sovereign debt problem.
In contrast, the Tea Party, which represents regular American, wants to start the debate on the feasible long-term solution to the debt malaise.
Maybe some want to see the eventual collapse of the PONZI game so that it gives them the excuse to implement total control.