Obama’s budget plans bring $9.3 trillion in deficit spending, regulators “seize” credit unions and banks, Energy Department to give $40 billion in alternative energy loans, drug violence sparks debate on legalization, and Obama offers Iran “new beginning” in U.S.-Iranian relations…just the latest in your Freedom Under Fire Report!
Obama’s Budget Proposals Produce $9.3 trillion deficit. President Obama’s budget proposals produce an insane $9.3 trillion in total deficits over the next decade, according to the Congressional Budget Office. This is much more than the White House originally predicted. The President’s budget plans represent an aggressive restructuring of the U.S. economy, moving the country from a largely market-based system to one that more closely resembles a European Socialist state.
Regulators Begin Seizing Financial Institutions. U.S. regulators seized control on Friday of U.S. Central Federal Credit Union, one of the biggest wholesale credit unions with $34 billion in assets. The National Credit Union Administration (NCUA) also took control of Western Corporate Federal Credit Union, which had $23 billion in assets. The rationale came after “stress tests” that determined the institutions had an “unacceptably high concentration of risk.” Additionally, bank regulators seized three small banks worth a total of $1.1 billion on Friday. Busy day for federal authorities.
The government is doing things it has never done in America. This week, alone, the Federal Reserve committed to printing $1.2 trillion in what it calls “quantitative easing.” That’s a nice-sounding term for printing money. The House of Representatives passed a punitive 90% tax on bonus income for employees of financial institutions last night. This tax is retroactive, meaning that employees who legitimately received bonus income and spent it will still be required to folk over 90% of what they’d previously earned. Even worse, this punishment is indefinite and will be applied to all future bonus compensation. To top off his melee, in today’s news we hear that the White House miscalculated its budget estimates and Obama’s plans will place the country another $9.3 trillion in debt, at a minimum. This week also marks the beginning of the Great Nationalization: federal regulators “seized” two massive credit unions and three small banks. This is only the beginning.
With this kind of volatility, uncertainty, and outright stupidity in government, it pays now more than ever to understand how to navigate the political economy. My book, Obamanomics: A Guide To Investing Over The Next Administration, analyzes President Obama’s policy objectives and how they will impact markets. The book breaks each policy into actionable investment options and shows you how to put together your own “Obama-proof” portfolio.
Energy Dept. To Give $40 billion in Loans For Renewable Energy. The Energy Department awarded its first alternative-energy loan guarantee of $535 million to Solyndra Inc. to fund photovoltaic systems. In total, the federal department is scheduled to lend more than $40 billion for alternative energy projects that it deems have value.
Drug Violence Sparks Debate on Legalization. With thousands of people murdered in escalating violence along the Mexico-U.S. border, more people are turning to discussions on legalization. Both Mexico and the U.S. are advancing military escalation as a reaction to the violence, but a growing number of critics are pointing to the easiest solution: legalization.
Obama Offers Iran ‘New Beginning’ In Videotaped Message. President Obama issued a videotaped appeal to Iran offering a “new beginning” in U.S.-Iranian relations. “My administration is now committed to diplomacy that addresses the full range of issues before us, and to pursuing constructive ties,” he said on Friday.
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