Skip to main content

Bush seeks $2.9 trillion budget

"We've got to spend our way to prosperity. Plus, I want to get me one of those diamond encrusted space shuttles."

The New York Times reports that President Bush has sent a proposed $2.9 trillion budget for next year over to Capitol Hill, "where it is certain to be sharply criticized by the Democrats, who control both houses but are by no means all powerful".

Yes, I'm sure it will be criticized by the Democrats. But not entirely whittled down. I mean, have you ever seen a modern era U.S. government hold back the uptrend trend in spending and government enlargement? It will never happen, for reasons aptly described by Harry Browne in the book, Why Government Doesn't Work (a book which I'm finally around to reading and I highly recommend).

Far more likely that the Democrats will flaunt their disapproval in print and on TV, settling, in the end, for a modest cut in the proposed figure. Something more reasonable: say a sum of only $2.65 trillion.

Meanwhile, the focus will shift to an argument over how to spend that money when the budget is passed. The Democrats will probably argue for a wellness and meditation center in Iraq, while House Speaker Nancy Pelosi could spark an idea (inspired, in part, by "a really cool NPR report on biofuels") for a large scale ethanol plant powered by Malaysian palm oil.

To update the old saying: A trillion here, a trillion there. Pretty soon you're talking about real money.

Popular posts from this blog

Nasdaq credit rating junked.

S&P cut Nasdaq's credit rating to junk status citing debt burdens and its questionable strategy to buy a controlling interest in the London Stock Exchange. Financial Times reported that the exchange's counterparty credit & bank loan rating were lowered fromm BBB- (lowest investment grade rating) to BB+. The change will increase Nasdaq's borrowing costs should it wish to pursue aquisition targets. For an earlier look at the exchange consolidation trend that brought about Nasdaq's push for a stake in the LSE, please see "Exchange fever" .

Clean Money - John Rubino: Book review

Clean Money by John Rubino 274 pages. Hoboken, New Jersey John Wiley & Sons. 2009. 1st Edition. The bouyant stock market environment of the past several years is gone, and the financial wreckage of 2008 is still sharp in our minds as a new year starts to unfold. Given the recent across-the-board-declines in global stock markets (and most asset classes) that have left many investors shell-shocked, you might wonder if there is any good reason to consider the merits of a hot new investment theme, such as clean energy. However, we shouldn't be too hasty to write off all future stock investments. After all, the market declines of 2008 may continue into 2009, but they may also leave interesting investment opportunities in their wake. Which brings us to the subject of this review. John Rubino, author and editor of GreenStockInvesting.com , recently released a new book on renewable energy and clean-tech investing entitled, Clean Money: Picking Winners in the Green Tech Boom . In Clean ...

Jesse Livermore: How to Trade in Stocks (1940 Ed. E-book)

If you've been around markets for any length of time, you've probably heard of 20th century supertrader, Jesse Livermore . Today we're highlighting his rare 1940 work, How to Trade in Stocks (ebook, pdf). But first, a brief overview of Livermore's life and trading career (bio from Jesse Livermore's Wikipedia entry). "During his lifetime, Livermore gained and lost several multi-million dollar fortunes. Most notably, he was worth $3 million and $100 million after the 1907 and 1929 market crashes, respectively. He subsequently lost both fortunes. Apart from his success as a securities speculator, Livermore left traders a working philosophy for trading securities that emphasizes increasing the size of one's position as it goes in the right direction and cutting losses quickly. Ironically, Livermore sometimes did not follow his rules strictly. He claimed that lack of adherence to his own rules was the main reason for his losses after making his 1907 and...