President Obama forces General Motors CEO to resign, tallying up the spending binge-Federal Reserve and Treasury dump $13 trillion into financial system over last 16 months, bureaucrats begin turf battle over $1 trillion carbon credit market, and Global Socialism is on the way with tripling of IMF budget…
White House Forces GM Chief to Resign. Rick Wagoner, CEO of General Motors, resigned today under pressure from the Obama administration. The resignation comes just hours before the White House is expected to unveil its second automotive bailout plan for GM and Chrysler. Critics question whether the President is acting beyond legal authority.
Federal Reserve And Treasury Dumped $13 trillion Into Economy. In a 16-month spending orgy the combined efforts of the U.S. Treasury and Federal Reserve have poured more than $13 trillion into the financial system.
Bureaucrats Begin Turf Battle Over Carbon Credit Market. President Obama’s green agenda includes regulating carbon dioxide emissions, charging high emission firms additional taxes for polluting more. Less polluting firms could then trade surplus carbon credits on a secondary market, which is expected to grow to $1 trillion. This would constitute the world’s biggest derivatives market, and already bureaucrats are fighting over who gets to control it. The contenders are thus far the Federal Energy Regulatory Commission, or the Commodity Futures Trading commission. Whatever size the market reaches we should keep in mind that it is entirely unproductive, economically. The eventual size of the new carbon market will be pure sunk cost to society, at least in financial terms. Whatever environmental benefits ensue are speculative at this point.
Everyday the news points in a single direction: the growing size of government and its role in the economy. With every new bailout, every new trillion dollar printing press party by the Federal Reserve, and every new regulatory edict by the President or Congress, our society moves closer to a political economy. Free trade, free enterprise, Capitalism…these are words of a forgotten age. Regardless of your political persuasions, we must all face the reality that confronts us. Now is the time to learn how policy drives markets, so that you can protect your portfolio, insulate it from the whims of the Bureaucratic Machine, and maybe even make a profit along the way. To learn how the New Order will affect your portfolio and how you can protect yourself, read Obamanomics: A Guide to Investing Over the Next Administration.
Global Socialism On The Way: IMF Growing. The International Monetary Fund (IMF) is growing as a focal point for President Obama’s agenda. The White House has made fortifying the IMF one of its primary goals, with Treasury Secretary Tim Geithner calling for the IMF budget to triple, an increase of $500 billion.
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