From BRIC to TRIC

BRIC = Brazil, Russia, India, China
TRIC = Terrorism, Recession, Immorality, Chicanery

For the past ten years, the BRIC countries have been all the rage- growing fast, attracting fast (and loose) money, building like crazy, and nouveau rich showing off. Now, Brazil is having serious economic problems, Russia's rouble is in a rubble, China is trying hard to fight the downdraft, and India, in addition to economic problems, has had Mumbai attacked and brought down for three days. It is time to put on a new pair of glasses and see the current imagery.

Terrorism

Keith Obermann brought up a key point today, in light of the terrorist actions in Mumbai. Does India have the right to strike against targets in Pakistan that are considered 'housing terrorists,' just as United States did against Afghanistan after 9/11, and then followed with the Iraq war? Obama and Bush are not answering the question, while others are urging restraint. Since the U.S. is already carrying out actions inside Pakistan, this point is perhaps moot- except that India and Pakistan have historically been at odds.

Recession

Today, the National Bureau of Economic Research (NBER) reported that the U.S. entered a recession in December 2007.

From the Tribune...
**The White House commented on the news that a second downturn has officially begun on President George W. Bush's watch without ever actually using the word "recession," a term the president and his aides have repeatedly avoided. Instead, spokesman Tony Fratto remarked upon the fact that NBER "determines the start and end dates of business cycles.".."I'm sorry it's happening, of course," Bush said, referring to a global financial crisis that has eliminated millions of jobs and damaged retirement accounts.**

Treasury Secretary Henry Paulson said the Bush administration is looking for more ways to tap a $700 billion financial rescue program and will consult with Congress and the incoming administration of President-elect Barack Obama. "While we are making progress, the journey ahead will continue to be a difficult one," Paulson said in a speech to business executives in Washington. "But I have confidence that we are pursuing the right strategy to stabilize the financial system and support the flow of credit into our economy."

Immorality

According to early reports, all the terrorists involved in the Bombay attacks were young. Where are the parents of these folks? How did they let their children grow up to kill complete strangers- people who have not hurt them in any way? These parents should know that their children have died. Come out and speak out. Parents have to discipline their children and teach morality. It should apply to parents in every country, and of any religion.

Chicanery

There is a lot of chicanery to go around. In this section I will examine one or two at a time. First up- statements of Helicopter Ben.

Here is what Ben said on 3/28/2007, in testimony to the JEC.
"Although the turmoil in the subprime mortgage market has created severe financial problems for many individuals and families, the implications of these developments for the housing market as a whole are less clear.....Overall, the economy appears likely to continue to expand at a moderate pace over coming quarters. As the inventory of unsold new homes is worked off, the drag from residential investment should wane. Consumer spending appears solid, and business investment seems likely to post moderate gains."

But Bernanke -- while acknowledging there are risks -- told Congress's Joint Economic Committee that the Fed does not see such negative forces pushing the economy into a recession. "I would make a point, I think, which is important, which is there seems to be a sense that expansions die of old age, that after they reach a certain point, then they naturally begin to end," Bernanke said. "I don't think the evidence really supports that. If we look at history, we see that the periods of expansions have varied considerably. Some have been quite long."

Here's Ben today, 12/1/2008..
Addressing critics of the Federal Reserve’s response to the crisis, the central bank’s chairman, Ben S. Bernanke, defended the Fed’s actions, calling them “exceptionally rapid and proactive” measures that had helped stabilize the economy. In a speech in Austin, Tex., Mr. Bernanke warned that the economy would “probably remain weak for a time,” with particular problems ahead for exports and household spending. He called for broad new regulations that would allow the Fed more flexibility in assisting institutions considered “critical” to the health of the economy. Federal Reserve Chairman Ben Bernanke said today that further interest rate cuts were possible but he cautioned that there were limits to how much such action will be able to revive an economy expected to remain weak well into next year. "Although further reductions ... are certainly feasible, at this point the scope for using conventional interest rate policies to support the economy is obviously limited," Bernanke said in a speech to business executives in Austin, Texas. The Fed is widely expected to cut a key interest rate when officials next meet on Dec. 15-16.

This guy was wilfully asleep at the Fed Switchboard when the "ownership society" crowd were running the economy to the sub-basement, and he has the gall to defend his actions...