May 2011 Archives

Here are some thoughts about Medicare from Marco Rubio who eloquently sums up that the system will soon go bankrupt and moreover lays out the facts about how we must keep this system alive and well. An excerpt is below and you can read more on his website or the Miami Herald.

For me, Medicare is not a political talking point. My parents immigrated to the United States in the late 1950s. They worked hard for over 40 years to provide their children the chance to do all the things they themselves could not.

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Peter Morici writes a contributed column at The Street which explains that Greece must abandon the euro and go to another currency like the drachma it used to have in order to allow it to devalue its currency against the euro and other currencies. It is worth noting one interesting benefit to strong exporters in Europe such as Germany is that a common currency allows them to sell to weaker countries like Greece through subsidized monetary policy. Basically, because of the euro, the Greeks can buy a BMW more inexpensively.

In other words, Greece consumers benefit from the euro the same way the German manufacturers do. The challenge of course is that Greece does not have as productive an economy, they have more tax evasion than they should and since their currency isn't dropping in value commensurate with their financial situation, they aren't able to boost tourism or the value of their exports.

The sad reality for Greece and the US is in the following paragraph:

The only real solutions are for Greece to restructure its debt -- both sovereign and private creditors should take haircuts; abandon the euro and reinstate the drachma; and rethink its welfare state.

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Who can argue with Herman Cain's comments about eliminating debt and Obamacare? Now this is hope and change the fiscally responsible can believe in. While I know little about Cain, I am impressed with his matter of fact style and he seems to resonate with many. As a businessman, I think he would do wonders for the country because he understands what business needs to get the economy going and to start hiring.

The one challenge is as a non-politician he may not be what America is used to. Continue Reading...

Greece is facing another  - and this time major downgrade to its debt by Fitch and the continent's liberal policies may indeed bankrupt the EU. In the US - the Obama administration in partnership with Pelosi, Reid and liberal Democrats are not only modeling US policy on Europe they are trying to get to insolvency first. Paul Krugman of the New York Times is the biggest proponent in the media of spending well beyond our means and many use his writings as cover to behave financially in a way they wouldn't and can't in their personal or corporate lives.

I hope those who believe in fiscal responsibility and hope to leave a better country to their children will join me in utilizing the new and infinitely accurate term "Krugman Death Spiral" when referring to any country which spends beyond its means and subsequently spirals downward.

Obama Death Spiral works as well - or Reid or Pelosi - your call really. Continue Reading...