“”Milwaukee gains more than it loses in budget bill,” reads the Milwaukee Journal Sentinel headline. And so you understand why unions are in such a rush to hold recall elections before voters see the benefits of Wisconsin’s new law:
Despite early criticism from city officials, new figures show Milwaukee will gain more than it will lose next year from the state’s controversial budget and budget-repair legislation.
The city projects it will save at least $25 million a year – and potentially as much as $36 million in 2012 – from health care benefit changes it didn’t have to negotiate with unions, as a result of provisions in the 2009-’11 budget-repair measure that ended most collective bargaining for most public employees.
That saving would be partly offset by about $14 million in cuts in state aid to the city in the 2011-’13 state budget, down from earlier estimates of more than $17 million.”
“The grand chessboard is in play.
Last month we reported that the Pentagon has issued a warning order to ‘Prepare for War’.
According to Dmitry Rogozin, Russia’s envoy to NATO, it’s not just Israel and the Pentagon that are getting ready to expand the middle east theater:
Rogozin said in an interview with Russia’s Izvestia daily newspaper published on Friday that the NATO was pursuing a long-reaching goal of preparing an attack on Iran, adding that the alliance intends to change governments whose views do not coincide with those of the West.
“The noose around Iran is tightening. Military planning against Iran is underway. And we are certainly concerned about an escalation of a large-scale war in this huge region,” Rogozin added.
The Russian envoy further pointed out that Syria and later Yemen could be NATO’s last steps on the way to launch an attack on Iran.
This comes as there are speculations that Israel is preparing for an attack on Iran’s nuclear facilities to divert attention from Palestinian efforts to join the United Nations.”
Via SHTF Plan
“America’s credit rating was punished by S&P because US politicians failed to reach an adequate solution to the country’s massive debt woes which are nearing 100% of GDP. Investors reacted by buying the Japanese yen– a country whose sovereign debt rating is two steps below the US, and at 220% of GDP, over twice as indebted!
Not to mention, Japan has burned through 4 prime ministers and 8 finance ministers just in the last four years. This is not exactly a country whose government has a successful track record of dealing with its problems.
How does this make any sense? That’s like firing an employee who gets drunk on the job and replacing him with a gun-toting heroin addict. Yet faced with a universe of bad choices, investors will pick the one which appears to be the ‘least worse’.”
Via Sovereign Man
“The US Federal Reserve’s meeting on Tuesday is likely to be one of its most difficult and divisive since, well, last August.
Sharply weaker economic data in recent weeks, a new peak in the eurozone debt crisis, and a downgrade to the triple A credit rating of the US have shaken confidence in a way that could spiral towards a new recession. The Fed will be forced to consider fresh stimulus in response.”
“But, despite those recent shocks, Fed policymakers still have reasons to think that growth should pick up later in the year. Oil prices are now about $25 a barrel below their springtime peak; supply chain disruption from the Japanese tsunami should fade; and, unlike last summer, inflation is close to target and has been rising, not falling. “
Via Financial Times
“The US economy still needs to recover from the festering malinvestments that accumulated during the previous two booms. By pushing interest rates down to zero and bailing out the very people who made such bad financial decisions in the first place, the Fed and Treasury are doing everything they can to exacerbate the problem.
In this volatile world economy, investors can expect continued volatility in the stock market. The only thing we can really be sure of is that the government will use each new crisis to justify further extensions of its power. At some point the feds will probably seize the highly volatile 401(k)s and other stock-market holdings from citizens and replace them with “safe” government annuities.
Knowledge of Austrian economics doesn’t render someone an expert investor, but it certainly gives advance warning of the major trends in the economy. Those investors who rely on the Keynesians featured at CNBC think that another stimulus package or QE3 might do the trick.”
Here Comes TARP 2: Bank Of America Implodes, At $6.87, BAC CDS Up 20% To 260 bps As Bankruptcy Contemplated
“With Bank of America investors finally realizing it is game over for the company as a going concern, at this point there are just two options for Brian Moynihan: the spin off of CFC as a bad bank, backstopped by the Fed, or, well, Chapter 11, which for a bank is essentially liquidation (and with CDS trading up 50 bps to 260 a bankruptcy seems increasingly inevitable). It also means that another TARP is on the way. And once America realizes that another several trillion have to be put into its insolvent banking sector, it will get quite violent. The biggest irony: it is AIG which takes down the financial system for the second time after its lawsuit against BAC filed last night kills Bank of America.”
Via Zero Hedge
“State and local education officials have been begging the federal government for relief from student testing mandates in the federal No Child Left Behind law, but school starts soon and Congress still hasn’t answered the call.
Education Secretary Arne Duncan says he will announce a new waiver system Monday to give schools a break.
The plan to offer waivers to all 50 states, as long as they meet other school reform requirements, comes at the request of President Barack Obama, Duncan said. More details on the waivers will come in September, he said.”
Via CNS News
typical government solution…instead of fixing why these kids are failing we’ll just eliminate the rules….