America is a "Mickey Mouse economy" that is technically bankrupt, according to Jochen Wermuth, the Chief Investment Officer (CIO) and managing partner at Wermuth Asset Management.
"America today looks like Russia in 1998. Consumers, companies and the government are all highly indebted. America as a result is a bankrupt Mickey Mouse economy," Wermuth told CNBC.
Frankly, I think Mickey Mouse should sue. Only arrogant elitists could get us into a situation like this and Mickey is just an honest, hard-working cartoon character. And, as Larry Kudlow observes, "The Fed Can Print More Money, But It Can’t Print Jobs." Not even Mickey is this stupid. Goofy, maybe. But not Mickey.
Did the Fed choose stimulus over dollar stability? The greenback fell and gold rose after the FOMC signaled today that it would keep its balance sheet steady by reinvesting the proceeds of mortgage bonds into Treasurys. This is the first Fed policy shift in about a year. It comes in response to a slower economy and disappointing job numbers, with the Fed downgrading its economic outlook in its FOMC statement.
By itself, this is a modest move. But it could be the start of something bigger. If recovery conditions continue to slow, the Fed could be more aggressive by monetizing more Treasury debt and expanding the balance sheet to print money. If it does that, the dollar will depreciate more and gold will rise more. A lot more.
But here’s the central problem. The Fed can print more money, but it can’t print jobs — or capital formation, or productivity. With a trillion dollars of excess bank reserves already in the system, there’s no shortage of money. The recovery is being held up by the tax-and-regulatory threats and anti-business attitude coming out of Washington. . .Oh, by the way, did you see the USA Today report that federal workers now earn double their private-sector counterparts? Total pay and benefits come to about $123,000 for federal workers in 2009, compared with $61,000 for private-sector workers. And who’s paying for that? You are. And President Obama wants a 1.4 percent across-the-board pay hike for the federal workforce in 2011.
It’s all a matter of priorities. Who do you trust? Well, Washington trusts government. So the private sector is very slow to spend and invest.
This is not going to end well.Got militia?
You shall know them by what they do.
"They" are trying to kill this country and her people mean less than nothing to "they."
Might have to buy more rope......
Hey! It's Green!
I hear there are those that will do jobs that Americans won't do. And they work a lot cheaper than Americans.
Micky should go and open a can of wip-ass on this Wermuth. And Mike even Goofy don´t spend money he don´t have.
P.S. Make that rope Manilia, more likly to cause rope burns.
Agree on Mickey being insulted, but I disagree that "By itself, this is a modest move." It is major. The original money was printed to buy unwanted "toxic assets" (shaky mortgages) at higher than market values. So, doesn't this imply that our bonds are unwanted toxic assets which if sold at market would be at less than face value?
Got militia? You're not kidding.
I am sick and tired of Goofy not getting any credit for his comic genius, while that glory hog Mickey just shows up and steals all the credit.
Goofy has worked long and hard in Mickey's shadow, never complaining. You may call that stupid. I call it dedicated.
Mickey should be ashamed!
The standard formula of Keynes for building an economy is this.
1. Throw money at it
2. Create public works and make work jobs.
3. Start a war
Look for number 2 and 3 too come soon. I am guessing that a lot of jobs will be created as "green" jobs that will involve moving dirt and picking up trash. They will have NOTHING to do with actual renewable energy, after all the pesants do not deserve to control their own energy. I look for a war with Iran for number 3.
Of course the second wave of the the mortgage crisis is about to land on us and that voluminous commercial real estate bubble gonna go any day now...plans have been made, they go into effect in one week. We are going to TN where the state is not so indebted and the economy is still strong enough to support a hard working man and his family. Of course I will take full advantage of lower expenses, increased earnings, and freedoms from the 2A shackles placed on us in CA and stock up on guns, ammo, and all other necessary supplies to supplement the meager supplies I already possess.
Very soon, much like the survivors of the Titanic did, I will watch as my former vessel [the People's Republik of Kalifornia] gets swallowed whole by the ocean [pension tsunami]; of course we will by then be at a safe viewing distance. Then again, will TN have the guts to say NO to Feds who want more money from surviving states to fund the failing states?...after all, CA is TOO BIG TO FAIL, right? Just sayin' is all.
How can Mickey give the middle finger if he only has four?
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