A Federally Rewarding Game....If only one can play it

***********The Treasury borrows money by issuing bonds. The Fed sets interest rates low and makes it really inexpensive for the Treasury to borrow. Furthermore, the Fed buys up government debt if others are not willing to or if the buyers demand higher rates. The Fed instructs the printing presses to print more money, which the banks can borrow at almost zero cost and then buy treasuries and make money at no risk. The Fed reports interest income..."The Fed said much of its income, $46.1 billion, came from its open-market buying of U.S. Treasury debt, debt of mortgage finance sources Fannie Mae and Freddie Mac, and mortgage bonds and other securities. The program was aimed at holding down interest rates to spark an economic recovery..."

*******What a game!**********

News Analysis - A Decade of Enormous Deficits May Alter American Politics and Power - NYTimes.com: "

In a federal budget filled with mind-boggling statistics, two numbers stand out as particularly stunning, for the way they may change American politics and American power.The first is the projected deficit in the coming year, nearly 11 percent of the country’s entire economic output...But the second number, buried deeper in the budget’s projections, is the one that really commands attention: By President Obama’s own optimistic projections, American deficits will not return to what are widely considered sustainable levels over the next 10 years. In fact, in 2019 and 2020 — years after Mr. Obama has left the political scene, even if he serves two terms — they start rising again sharply, to more than 5 percent of gross domestic product. His budget draws a picture of a nation that like many American homeowners simply cannot get above water... One source of that absence of will is that the political warnings are contradicted by the market signals. The Treasury has borrowed money to finance the government’s deficits at remarkably low rates, the strongest indicator that the markets believe they will be paid back on time and in full..."

Borrowing 41 cents while raising 59...and spending it all

Another big budget and big deficit from the White House...

In these times, perhaps all elected officials should walk the deficit reduction talk by taking a sizable pay cut. Practice before preaching- is not something that is practiced in Washington.

Obama unveils $3.83T budget with massive deficits - Yahoo! Finance: "President Barack Obama sent Congress a $3.83 trillion budget on Monday that would pour more money into the fight against high unemployment, boost taxes on the wealthy and freeze spending for a wide swath of government programs.

The deficit for this year would surge to a record-breaking $1.56 trillion, topping last year's then unprecedented $1.41 trillion gap. The deficit would remain above $1 trillion in 2011 although the president proposed to institute a three-year budget freeze on a variety of programs outside of the military and homeland security as well as increasing taxes on energy producers and families making more than $250,000."

Global Experience

For the better part of the last century students in the USA did not have to worry about global issues. They could graduate and find good employment within the US of A. Now, the game has been altered dramatically. Students are finding that international experiences add value to their resumes. Thanks to this attribute more young people are learning about other countries. This can only lead to a more informed citizenry, more responsive government, and hopefully a more peaceful world.

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Interns chase international experience, hope it pays off with a job - chicagotribune.com: "Employers are looking to hire people who understand the economies and cultures of the world, he added.

'We just hear CEO after CEO saying that the work force of the future, really, the work force of the present, has to be a cross-culturally competent work force. Work forces are cross-cultural; businesses are global,' he said."

Creating jobs...courtesy the Supreme Court

President Obama wants to spend more money, via deficit financing, on job creation. Why not embrace the recent Supreme Court decision and let corporations spend their largess on candidates and political ads, as long as that spending creates jobs? Perhaps elections can be held on a monthly basis so that the corresponding corporate spending can be smoothed. The Supreme Court can then be given credit for job creation without deficit financing.

Obama pairs a push for jobs with proposed spending cuts - chicagotribune.com: "President Obama wants Congress to quickly approve a jobs bill in the range of $100 billion, a top White House official said Sunday, reflecting the growing political anxiety among Democrats about stubbornly high unemployment in an election year.

The push for jobs-creation legislation, on top of the $787-billion stimulus measure that Obama signed into law one year ago, comes as Republicans have accused the party in power of pursuing a costly and ineffective economic recovery strategy."