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Archive for June 2010

Oregon and political sex scandals

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First it was Bob Packwood for making a few harassing comments and he gets run out of office.  Everyone remembers Monica Lewinsky and President Clinton.  Miss Lewinsky attended Lewis & Clark College (just outside of Portland).  Now we have Al Gore and the case of the hotel room massage.  I almost forgot, how about the pre-political office allegation of David Wu raping a coed while in college….and Sam Adams (Portland mayor) lying about his relationship with an underage “Beau Breedlove” during the last election.   Whats next is anyones guess.

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Written by opinionoregon

June 28, 2010 at 9:03 pm

Government Debt – out of control

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This week the fed is set to auction off a mere $124 billion…No biggie! What’s another $124 bill in debt?  These auctions will probably do well as Europe’s economy continues to swirl down the toilet bowl. We still somehow represent a “flight to safety”. The way I see it, Europeans sending their money over here for safety is like sending your daughter to the casino with Joran Van Der Sloot for cocktails. Let’s face it:  This Ponzi game of finance cannot continue at this pace. It’s mathematically impossible. What’s scary is we now have to peddle these auctions at a time where Europe appears to be heading straight into a debt deflation death spiral. I say this because extreme austerity will be the only exit strategy that Europe has as long as the euro is alive because none of these countries can devalue their currency.

As a result of extreme austerity measures: Wages will get crushed as these countries pay off their immense debts. Lower wages will then crater the housing market which then craters the banks and so on and so on. What will be left will not be pretty. Moving forward, the European governments will have a lot less money in their coffers to spend on things like Treasuries because their tax revenues will also crater as a result of austerity measures. They will also be forced to spend more money at home as unemployment soars. The impact of such conditions will increase the costs of social programs that will be necessary in order to avoid civil unrest. The Bottom Line sometime soon, one of our debt  auctions will fail. It’s a matter of WHEN not IF. There simply isn’t enough money in the world to continue such irresponsible spending without printing. My fear is when that day arrives the Treasury will have no choice but to turn our currency into a piece of toilet paper.  Let’s all hope this house of cards doesn’t tip over next week.