April 1, 2013.  Unemployment is approaching 25 percent, inflation is close to 40 percent, major portions of the U.S. are having power "brownouts," and Americans are forced to go to foreign countries for timely and quality medical care. How did the world's largest and most prosperous economy fall into such a morass in only a very few years? Collapse of the American economy in 2013 began with several major policy mistakes by the Fed, the "Bush 43" administration, and Congress in the years from 2004-08, which were compounded with even greater policy mistakes by the Obama administration, Congress and the Fed from 2009 thereafter. After promises of "change," the new Obama administration, the Democrat Congress and the Fed only made changes for the worse.

I've been opposed to Barack Hussein Obama's plans for a $775 billion "stimulus" package for three main reasons: First, the stated purpose of the stimulus is to encourage consumer spending; that is to say, to do more of what got us into financial trouble in the first place.  We've been living large on money borrowed chiefly from the Chinese.  That gravy train has lurched to a halt.  We need to live within our means.  That means saving money and paying down debt -- the opposite of what the designers of the stimulus package want us to do.  Second, because about 60 percent of the stimulus package is a grab bag of spending on government construction projects, it cannot achieve the stated goal of boosting the economy in the short term, because it takes too long for the money to trickle in.  Economist Bruce Bartlett published in the New York Times in January of last year a chart which indicated that in all eight post World War II recessions prior to this one, the government stimulus didn't take effect until after the recession ended.  Third...

The barkeep here at the HFR Saloon can't keep up with the drink orders this week.  Half of them are drinks to celebrate the never-ending pratfalls of the Zero Circus.  The other half are for glasses of beer to cry in, since the Circus' biggest pratfalls will be the ruination of America's economy and national security. Every celebrant, it seems, wants a different cocktail.  One fellow has a Sidecar.  "Do a lot of business in Albuquerque," he says.  "Every business guy in town knows what a corrupt crook their governor Bill Richardson is - he's the Blagojevich of New Mexico.  You telling me Zero's people didn't know this, that the FBI has a major investigation on him?  I'm telling you, Zero is not ready for prime time.  By the way, always make a sidecar with bourbon, not brandy." Nearby was someone with a Manhattan.  "I'm from Chicago and we know Blago.  He's much smarter than Richardson who's dumb as a stump.  Look how Blago snookered that arrogant little worm who pretends he runs the Senate.  Blago knew if he nominated a white guy it would be blocked, so he picked a black guy whose only qualification was that he was black, old Tombstone Burris.  Harry Reid had to cave.  Sure proves we're post-racial after November 4, huh?"  He took a sip.  "Be sure and have your Manhattans with rye, not Canadian, whiskey."    At the end of the bar was a grandfatherly type who was into his second Long Island Ice Tea and feeling no pain.  "Doncha just love Slick Willie's chief of staff running the CIA?  If that isn't a hoot, what is?  Until we get nailed by another 9/11, that is.  That Feinstein broad got her panties in a twist because Zero didn't pick her boy Kappes."

European foreign ministers were startled Jan. 6 when Egyptian President Hosni Mubarak told them Hamas must not be permitted to win the conflict in Gaza.  That's not what they expected to hear from an Arab leader. Israel's invasion of Gaza has prompted denunciations from the usual suspects.  But as fictional detective Sherlock Holmes noted in solving the mystery of the disappearance of the race horse Silver Blaze, what's most interesting are the dogs that aren't barking. Moonbats in Europe and America are agitated, but protests against Israel in Sunni Moslem countries have been muted.  In the West Bank, there's barely been a peep of protest. This is because Sunni Moslem leaders view the terror group Hamas as a proxy for Iran.  And though Sunni Moslem rulers don't like Jews any more today than they did before, they don't fear Israel.  But they do fear Shia Iran.

Members of Congress each will receive a $4,700 pay raise this month, which will give them a salary of $174,000 per year. Do you think they are worth it? Most of us would like to be in the position of voting for our own pay raises from an employer who has almost unlimited access to money, so when many others are taking pay cuts or losing jobs we would not have to worry. Given that members of Congress were in a large part responsible for the current economic mess, it is hard to see how they can justify a raise, which they claim is merely a cost-of-living increase. Part of the problem is that they give themselves pay raises based on the rate of inflation. If these increases depended on the rate of change (increase or decrease) in real per capita disposable income (i.e., after taxes) of the average citizen, Members of Congress would have an incentive to maximize economic growth rather than encourage inflation. In the next few weeks, members of Congress will have an opportunity to pass a "stimulus package" that enhances economic growth or one that makes things worse.  Which do you think they will choose?

There are, I suspect, quite a few jobs in government for which having no experience is not a liability.  But few would list CIA director among them.  Which is why Barack Obama's pick of Leon Panetta is causing so much consternation. A former congressman, Mr. Panetta, 70, served as budget director and then as chief of staff in the Clinton administration.  But he's never spent a day in the intelligence community. If you think it dangerous, at a time when we are engaged in two wars, to have a novice at the CIA, then you're likely appalled by the Panetta nomination. But if you think of the CIA as a rogue, dysfunctional agency that needs to be reined in, you may think Mr. Obama's choice is inspired. Because I think the CIA requires wholesale reform, I think better of the Panetta nomination than do most others.  But I have two huge concerns.