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| John Arthur Smith |
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| Susana Martinez |
John Arthur Smith Offers a Compromise on the Unemployment Fund Shortfall
Santa Fe, NM - Senator John Arthur Smith, D-Deming, introduced SB-29 today (Wednesday) he believes is designed to reach a compromise with the governor on shoring up the state's Unemployment Compensation Fund. "This proposal would lower the unemployment insurance rates that New Mexico businesses pay from the rate the legislature believed was necessary earlier this year while raising it from what the governor indicated she would accept," Smith said. "We're splitting the difference evenly." Smith's legislation would set the rate schedule based on what is known as Contribution Schedule 2 for all of 2012 and 2013, except that the administration could raise the rates to Contribution Schedule 3 in 2013 if the Unemployment Compensation Fund drops below 30 percent of the benefits paid this year. Legislation approved earlier this year set the rates at Contribution Schedule 3 beginning in 2012, but the governor vetoed that provision, prompting a court challenge and casting doubt on what rate would apply in 2012.
"Without this new legislation, it's likely the Unemployment Compensation Fund will become insolvent, forcing businesses to automatically pay much higher rates," Smith said. "This proposal is a true compromise. It ensures the solvency of our Unemployment Compensation Fund at a time when out-of-work New Mexicans need it most. It guarantees businesses a low, consistent unemployment insurance rate for up to two years and it literally finds the middle ground between what the legislature and governor each support," Smith said.
Biden's Office Also Linked to Solyndra Loan Pressure
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| Joe Biden |
Newsmax -In 2009 White House officials pressured the Office of Management and Budget to make quick approval of a $535 million loan guarantee for solar panel maker Solyndra, according to e-mails obtained by The Washington Post. The reason for the rush was to allow Vice President Joe Biden to announce the loan at an opening ceremony for the company’s factory in September 2009.
The loan had been approved by the Energy Department, but needed final clearance from the OMB. Solyndra was a vital piece of President Barack Obama’s effort to promote clean energy sources. The company collapsed two weeks ago, meaning taxpayers will foot the bill for the loan. Read full story here: News New Mexico
"Arab Spring"
NewsNM note - One of the excuses for the bad economy provided by the White House has been what it calls, "Arab Spring." This is the phrase used to describe the revolutions in Egypt, Libya, and Syria. Maybe it was President Obama's "Arab Spring" as depicted by cartoonist Tony Branco back in May that lost New York's Congressional District #9. Until today that seat had been in the hands of Democrats since Calvin Coolidge was President.
Progressive Explanation of "Pointless" GOP Win in New York's C.D. # 9 Held by Democrats Since 1923
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| Anthony Weiner |
White House on New York C.D # 9: It's Not Our Fault
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| Jay Carney |
Why Lower Rates Are Killing Credit Expansion
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| Bill Gross |
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| Ben Bernanke |
This potential paradox arises not just from observation of the Japanese experience over nearly two decades, but from an analysis of our modern-day financial system and its potential inadequacies. Fractional reserve banking, where only a portion of bank deposits are backed by hard cash, as well as unreserved collateral-based lending on overnight repo have allowed for an expansion of credit beyond the bounds of a central banker’s imagination. 
Borrowing short-term at a near risk-free rate and lending at a longer and riskier yield has been the basis of modern-day finance. Renowned economist Hyman Minsky explained that this was one of the inherent flaws of the Keynesian neo-classical synthesis. Borrowers wanted lengthy loans to match the practical lives of their plant and equipment, but lenders were disposed towards shorter maturities because of the resultant financial volatility. Over a secular timeframe, a grand compromise was struck somewhere between seven and eight years in terms of nations’ typical average maturity, but lenders demanded an additional feature – a positive yield curve with a substantially lower policy rate that would allow “rolldown” and incremental yield – especially if levered. Thousands of billions of dollars of credit were extended on this basis, some of it as short as a one-week or one-month maturity extension, but all of it – almost everywhere, nearly all of the time – on the basis of a positive yield curve encompassing potential rolldown and incremental returns.
However, in recent weeks, at least in the United States and perhaps soon elsewhere in the Fed dominated global monetary system, the rules have changed. Pilot Bernanke has changed planes from a fixed wing to a rotor-based helicopter by “conditionally” freezing policy rates for at least the next two years. As such the front end of the curve has for all intents and purposes become inert and worst of all flat as opposed to steeply positive. Two-year yields are the same as overnight fund rates allowing for no incremental gain – a return that leveraged banks and lending institutions have based their income and expense budgets on. A bank can no longer borrow short and lend two years longer at a profit. Read full column here: News New Mexico
Responding to Slowdown Accusation, Egolf Quotes Bible
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| Brian Egolf |
A few minutes earlier, Rep. Brian Egolf (D-Santa Fe) accused Republicans of parroting “political talking points from the fourth floor” (home of the office of Gov. Susana Martinez) and then said he had talking points from a higher power. Egolf then quoted the New Testament, Matthew 6:1-6:4, which warns against self-righteousness. Read full story here: News New Mexico
Miller: Legislative Plan Becoming Evident
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| Jay Miller |
Nevadans Sends Republican Mark Amodei to U.S. House
Obama Repudiated in NY, House Special Election for Weiner's Seat Goes GOP for 1st Time Since 1923
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