We need a dollar default

John Maudlin talks about this.

The Bush expansion of government

What lil Bush had wrought in the government employment bubble.  This was Paul Ryan, Eric Cantor, NCLB, the unfunded wars, the Trifecta, and the Dead Kennedy.

Let's add Reagan and Clinton:

Are we starting to get the problem?  It is a dysfunctional Senate into which the NRO crowd and the Kennedy crowd can wedge  massive programs.  he voter is not irrational, the voter simply does not have the bandwidth to cover all the shenanigans going on in Washington. You can see that Reagan held the line in his first term, but by the second term the delusional elites took advantage of his disease.  Notice the NRO crowd today, celebrating Big Government Conservatism, it is the birthday of the dead Communist in chief.

The citizen's only defense against the nonsense has been high progressive taxes, that allows us to get around the Senate and at least simulate the emergence of minimal government.

 Check out the Treasury curve. See the growth in the 5 to 7 year range.  Investors are preping for maturity crunch in government debt.

The crap does not stop until we face sovereign default.  

Here come the union scare tactics

"The notion of another $2 billion in cuts is frightening to us and should be to everyone who cares about education," said Bob Wells of the Association of California School Administrators.

Translation, we control government and we want our pensions. I prefer a California default.

UC Berkely hires delusional politicians

Henry Payne reporting from Michigan:

Granholm envisioned a transformation of Michigan from Rust Belt to "Green Belt" with massive, European-like, public investments in infrastructure and alternative energy. "In five years, you'll be blown away," she predicted in what would become her signature line.
Ironically, thousands of state jobs were blown away as Granholm's vision diverted pols' attention from much-needed reforms to the state's budget and business climate. Since her speech in 2006, the state's unemployment rate has exploded from 7.4 percent to 11.4.

From The Detroit News: http://detnews.com/article/20110126/MIVIEW/101260371/President-Barack-Granholm#ixzz1CCc3ZaD9

This tidbit:

Former Michigan Governor Jennifer Granholm has yet to start teaching her new Cal-Berkeley course on "state budgets, clean energy jobs, and diversifying the economy, and leadership" - but she already has a devoted student in the White House.

From The Detroit News: http://detnews.com/article/20110126/MIVIEW/101260371/President-Barack-Granholm#ixzz1CCcaCzV3

Some toad at Berkeley hired this delusional?  Let us start with budget cuts for the UC system, they can invent their own planned economy without government help.

Speaking of non-performing loans

See Mish's effort to track down a missing $560 billion in federal debt. Expect 40% of these loans to be non-perfomring, hence paid for by the household, right?