Bernanke's Christmas Gift to Obama Has Arrived

Stocks hit a 5-month high on the last trading day before Christmas and new data on the housing market and with regard to unemployment suggest the most watched economic indicators will soon be flashing green for recovery.

This manipulated economic boom will, of course, cheer the President as it will boost his re-election bid, but, note well, most of the rest of us will all end up paying for the Bernanke inspired money goosed economy, with higher prices on everything.

Prices have been nowhere near Krugman's deflationary expectations. Over the last 12 months, the headline CPI index increased 3.4 percent. But this will look like happy days compared to what is coming. Stock players and tech and oil workers will soon start spending the money gains they are seeing. Money gains they have because they are first in line when Bernanke prints. They are going to be bidding for consumer goods against the rest of us---and they are going to have the money to do it. In other words, most of us will have to scrimp and budget carefully, as Bernanke printed money flows elsewhere.

So yeah, the macro-economic numbers will look good, but down deep we will all be paying for this central bank distorted economy.

Merry Christmas.

Obama's Plan to Win: Court Lefties, Poor and Minorities

Obama political strategists have a game plan to win that does not include middle class whites, reports NYT's Thomas Edsall:

All pretense of trying to win a majority of the white working class has been effectively jettisoned [by the Obama campaign] in favor of cementing a center-left coalition made up, on the one hand, of voters who have gotten ahead on the basis of educational attainment — professors, artists, designers, editors, human resources managers, lawyers, librarians, social workers, teachers and therapists — and a second, substantial constituency of lower-income voters who are disproportionately African-American and Hispanic.

Is Obama a Keynesian?

The big question is answered by the Jon Stewart Restore Sanity folks. Hint this was not their best moment.



I wonder how the Tea Partiers would have answered the question?

(Thanks to Travis Holte)

Do Obama and Geithner Have a Man-Crush on Each Other?

This is getting real strange but, that's what senior White House advisor David Axelrod says according to New York Magazine's John Heilemann:

In the administration’s early months, Geithner’s orientation often put him at odds with White House political mavens, including David Axelrod, who were acutely attuned to the electorate’s retributive impulses...(Axelrod would laugh at rumors that Geithner was about to get the boot: “Don’t these people realize they have a man-crush on each other?”)

We also learn from Heilmann that Geithner and Obama met,

secretly at a W hotel in Manhattan in the waning days of the [Presidential election] campaign

Heilmann also tells us that Obama and Geithner were,

Born two weeks apart in 1961, both had grown up overseas and possessed the same cool detachment, love of sports, and relentless discipline.

No mention is made of the fact that Geithner's father ran the micro-loan Asia division of the Ford Foundation, while Obama's mother founded the micro-loan program in Indonesia.

Obama on Goldman: ‘All They’re doing Is Lip-Syncing Capitalism’

Not a good sign for Goldman Sachs.

From Jonathan Adler’s new book, The Promise: President Obama, Year One, :

“Obama later told a friend that the angriest he got as president in his first year was when he heard [CEO Lloyd] Blankfein” justify his compensation by saying “that Goldman [Sachs] was never in danger of collapse. That was flatly untrue,” Obama said.

“‘Let me get this straight,’ the president said.… ‘They’re now saying that they deserve big bonuses because they’re making money again. But they’re making money because they’ve got government guarantees….

“‘These guys want to be paid like rock stars when all they’re doing is lip-syncing capitalism.’ “

Keep in mind that this book is written by the Obama friendly Adler and was likely an attempt to boost Obama's  anti-Goldman creds. What Obama says about Goldman is true but, "Lip-Syncing Capitalism" is exactly what  the President does also, with much more serious consequences for us all.
 
(Via Clusterstock)

What Will Blago's Lawyers Do?: A Primer on the Upcoming Trial of Rod Blagojevich

by Paul Huebl

I’m no fan of Former Governor Rod Blagojevich because he’s part and parcel of the criminal enterprise that runs Chicago and now the Whitehouse. Blago is set to spin the Wheel Of Misfortune at Chicago's Federal District Court on June 3rd.

Still Blago is entitled to a fair trial with proper discovery and the right to subpoena witnesses for his defense. Blago will get anything but a fair trial and can count on being in prison at least until the U.S. Supreme Court has an opportunity to look at the 7th Circuit court of Appeals judges legal sabotage of Blago’s rights.

I’m absolutely convinced that Barack Obama is part and parcel to any attempts to sell his former senate seat. Blago has the goods on Obama and I don’t think he’s willing to fall on his sword without bringing down Obama and his presidency. I’d be absolutely shocked if Obama is not part of every criminal conspiracy that gave him an opportunity to do what Chicago Democrats all do.

Blago should have gotten immunity to bring down all the Chicago rats. Instead they have tried to craft a trial where release of facts of other’s criminal activity is forbidden.

The old criminal defense war horses, Sam Adam, Sr. and Ed Genson have been hogtied by the court in every way possible. Defending the hapless Blago under those conditions will be challenging to say the least.

I look for Genson and Adam to stir the Whitehouse excrement in a big way. If they don’t, their client is sure to do that during his show trial at the Dirkson Building.

The problem is the unlimited ability the Whitehouse and Chicago democratic party has to extort from and bribe anyone and everyone. Witnesses, judges, prosecutors, jurors and defense lawyers will all have the payday of their wildest dreams if they cooperate. There will be hell to pay if they don’t.


Read the rest here.

Obama Muscled the European Union to Bailout the PIIGS

It took American muscle to get the Germans to cough up big bucks to bailout the Greeks. President Obama, no doubt urged on by his bankster controls, put in the calls to European leaders, including Angela Merkel and Nicolas Sarkozy, to bailout BIG. NYT has the mad details:

President Obama had just flown into Hampton, Va., Sunday morning to deliver a commencement address. But before he donned his silky academic robes, he was on the phone with Chancellor Angela Merkel of Germany, offering urgent advice — and some not so subtle prodding — that Europe needed to try something big...Mr. Obama told Mrs. Merkel that the Europeans needed an overwhelming financial rescue to end speculation that the euro — and European unity — could crumble.

“He was trying to convey that he knew these were politically difficult steps that the leaders there had to take, that he had gone through them as well,” said one senior administration official familiar with the conversation. “And that, from his experience, trying to get out ahead as much as possible was the right way to go.”

That call was part of what a senior Treasury Department official called “one long conversation” with European leaders, who over an extraordinary weekend of late nights and early mornings overcame German resistance and agreed to a wholesale expansion of the bloc’s political and financial mission. Bending the rules, they backed the stability of all 16 countries that use the euro with loan guarantees adding up to nearly $1 trillion.

You just know some heavy bankster money had to be on the line somewhere. I wonder how much input came from President Obama's favorite banker, Greek-American Jamie Dimon?

But apparently Obama's silver tongue was not enough, As NYT put it:

Washington was also ready to help, in a limited but crucial way. The Federal Reserve offered to swap euros for dollars, easing pressure on European central banks, which were bleeding dollars.

NYT did not inform their readers of how "limited" this swap might be, so it is difficult to know for sure. However, according to the NY Fed, the last time the Fed launched currency swaps during the current financial crisis, the Fed pumped out $560 billion worth.

Goodbye Goldman Sachs, Hello JPMorgan Chase

Boy does Goldman's CEO Lloyd Blankfein wish he hopped a train to Washington D.C. last December when President Obama called a sit down.  He instead called in because he couldn't fly in the fog. Many consider that a major diss of President Obama.

Since that time it has been all Jamie "Obama's Favorite Banker" Dimon and his JPMorgan Chase, when it comes to White House favoritism.

Alan Prest at PEU Report emails with the latest on the Dimon takeover of financial influence at the  White House:

I researched Obama's Deficit Commission for connections and found a number to JP Morgan.  As noted before co-chair Erskine Bowles is senior advisor with a private equity firm.  FYI: here.

Also, the chair of Virginia's government restructuring commission is a private equity man, currently with Thayer and formerly of The Carlyle Group:  Here.

The club gets to remake the board to their favor.  Sweet!

Obama Jokes about Killing People via Drones

At Saturday night's White House Correspondence Dinner, President Obama delivered some very funny lines (written by others), but about 10 jokes in he jokes about killing people via drones.

He mentions that some hot teenage music group was at the dinner. He then mentions that his daughters were big fans, but warns the group to stay away and tells them he has drones. They sneak up on you, he says.

Now, if I am actually killing people (and sometimes hitting innocents) with drones, I would think basic decency would prevent me from joking about drones on a nationally broadcast event.

As a matter of fact, I can't see how you could ever joke about drones, if you really take seriously the fact that you put killer drones in the air to kill people.

Does this President have any clue as to how serious the use of drones is?

UPDATE: Here's what the President said:

The Jonas Brothers are here; they’re out there somewhere. Sasha and Malia are huge fans; but boys, don’t get any ideas. Two words for you: predator drones. You will never see it coming. You think I’m joking?

Jay Leno Nails It

At last night's White House Correspondents' Association dinner, Leno said:

The president isn't as aloof as some critics say he is. He loves to socialize - health care, car companies....

President Headed to Wall Street

This should be quite the show.

The White House just released a statement by Press Secretary Robert Gibbs that President Obama is heading to Wall Street on Thursday this week:

On Thursday, President Obama will travel to New York City where he will deliver remarks at Cooper Union on Wall Street reform. Almost two years after the crisis hit and almost one year after the Administration first laid out a detailed plan for holding Wall Street accountable and protecting consumers, he will call for swift Senate action. The crisis has already wiped out trillions of dollars in family wealth and cost over 8 million jobs. The President will also remind Americans what is at stake if we do not move forward with changing the rules of the road as a part of a strong Wall Street reform package.

The charges against Goldman Sachs begin to look more and more politically motivated.