That the administration would take this step in an election year, essentially declaring values war against a portion of the electorate that greatly assisted him in 2008, appears on the surface to not be the brightest of moves. Combined with the non-approval of the Canadian pipeline project it rises to alarming. 

If these are the actions Obama is willing to take while he is fighting for re=election, what lengths will he be willing to go to if he succeeds in getting a second term?

Neither is even pragmatic. the Catholic Church can not afford the fines and the USA can not function with adequate coverage without the hospitals. Negating Keystone with an Iran conflict looming and oil prices set to skyrocket just looks monumentally dumb.

I don't understand what is going on here - unless they believe that the public won't remember.

I agree with some above that this simply has to be intended. What amazes me is the Republican side of the debate. By the end of his term, Govt. debt will have increased far more than 50%. We have put in place new entitlement programs that will accelerate the debt accumulation pace.We have regulatory programs that throttle small business initiative (our job growth engine). We have steadfastly worked against affordable and abundant energy to facilitate growth.  We have blown by the 90% to GDP debt threshold that is proven to reduce GDP by at least 1%.

Yet the only potential candidate, Gov. Daniels, who tried to focus the debate on this was lambasted out of the race. None of the remaining candidates speaks seriously to the situation....besides Ron Paul who is considered unelectable.  

The functional difference between Obama and the Democrats and their political opponents appears to be the speed at which we arrive at our final collapse, not the end destination. 

Two questions for King:

1. What IF national and economic self interest take the place of political elite posturing - What if Germany listened to its electorate and refused to put good money after bad, using funds to reflate its banks instead. European export markets are severely damaged already but riding the Euro down makes outside zone exports increasingly competitive. When inflation starts to bite, the DM comes back, partially backed by their substantial gold holdings. Liquidity floods in to the new currency backed by something tangible (as China and Russia appear to be heading towards). North European countries peg to the DM. Is this not a reasonable scenario? What would be the USA reaction towards a credible threat to its global currency dominance?

2. If the Euro continues to depreciate (crosses 120 and continues down) and China refuses to move its currency upwards (or maybe even moves it down - Europe is its biggest market), how long will it take Ben to move to the new improved QE3? Obviously called by another name but still a bazooka in the currency wars.  

Claire, As an international expat (always a guest in someone else's country) you would fit into either environment. Having learned early on that no one wants to hear bad stuff from an outsider, you would not create enemies easily. Having learned to understand all, but focus only on the good, you would probably enjoy either one. Unless of course you view pretentiousness as a red flag to a bull - even then, Belmont isn't all that bad. I've lived on three sides of Belmont: Watertown, Arlington and Waltham at various points of my life - and I have seen much worse in snobishness than Belmont.

Of course this may get hugely more "interesting" if CDS get triggered. I don't think anyone knows how that would unwind - except that it would be catastrophic.

Fascinating watching this play out:

1. Bond holders purchase thinking they are primary * find out they are really at the back of the line, behind ECB and sovereigns. Rebelling hedge funds may seriously complicate.

2. Current attempt at agreement still leaves Greece at debt/GDP of 120%, which as Italy knows, is not a comfortable place to be. not only that, it still leaves Greece uncompetitive vs everyone.

3. Portugal will follow regardless of best intentions. Ireland has signalled it wants "help."Spain and Italy heading for the vortex. Belgium?

4. Banks and finance industry in serious trouble, and who has money to nationalize/reflate besides the northern countries?

I don't see how they can go on much longer without exiting at least Greece and Portugal. Even if they do, this looks like it is going to get profoundly ugly.

Question: When Europe gets sorted one way or the other, who's next?

a) Japan

b) USA

c) Both

A short and decisive war with Iran that keeps the straight open with minimum loss of life, would enhance Obama's image and re-election prospects. $10 - $12 per gallon gas caused by inaction while 40% of the world's oil is taken off the market would kill his chances of election.

I have not a shred of doubt that his reaction would be swift and violent - regardless of where his sympathies lie.

James significantly understates the security problem. Not only do the police not enforce the law and preserve security, they actively go after individuals who attempt to protect themselves. Hooligans and criminals can do pretty much as they like. Citizens who attempt to protect themselves land in serious trouble. The best thing you can do when discovering a criminal in your home is offer a cuppa.

We won't even bother to discuss the police standing by watching someone drown because they lack the proper health and safety training. World gone mad.

Given the "never before seen to this magnitude" structural problems facing the global economy today, I don't know how anyone can project/predict with a straight face. In today's world, it would take a very "brave" person to integrate economic consensus projections into their investment plans. Given the 100 - 300+ swings that happen daily with the Dow (that show no signs of abating) picking the days for comparison would be an art form rather than science.

With the cloud of black swans blackening out the sun, we are currently on the highway with neither ambient light nor headlights. good luck to us.

Can you imagine the liquidity that would be generated if the northern countries split off and pegged the new Neuro to some % of gold, say 40%. The economic downturn would be smoothed out by the safe haven tsunami of money flowing into the only non fiat currency on the planet. The banks need to be overhauled regardless so........

To much to hope for. What will be interesting is seeing what the next domino will be:

A. Japan

B. China

C. USA

D. BANG

Troy's characterization of Newt's erratic brilliance could be a strong point in his favor if the fit is the one required to improve our existential crisis. Churchill fit the same mold and was the perfect man for the time. Grant, Sherman, Petreus, Patton, Reagan, Bismark and a cascade of others, were perhaps less erratic, but men for their times.

I am not sure that Newt really is the person, despite his brilliance, that can lead the country down the path required.

I worry less about the electability versus Obama than I do re. whether I really believe he has what it takes to get us moving down the correct path. I a not yet convinced.

I am significantly more bearish than the Ricochet norm (Mr Dellingpole clone). I believe that if we don't get this one right, we are in for a nightmare. The electability issue becomes less relevant in this paradigm. Picking a candidate for his possible success in the election could well lead to a slightly slower version of catastrophe rather than a real improvement of our condition. We simply can't screw this one up. the stakes are too high.

If all of the above Ryan adoration is sincere (which I do not doubt), Why is there not more enthusiasm for Huntsman? He is the only candidate actually running who has tabled an entitlement reform proposal along the lines of Ryan's. From what I have seen, he has a pretty good handle on both the opportunities and approach for achieving the economic growth we so desperately need. He has a pragmatic, practical and experienced view on foreign affairs. He speaks well.

In short, at least on what has been put on the table so far, he has presented a Ryan + set of policy proposals.

I am not saying that Huntsman is my preferred candidate - I am saying that if you really like Ryan, he should be at least somewhat attractive.

Rock ribbed conservative he may not be (or may be, I don't know) but his combination of proven experience plus proposals more in line with what everyone is saying they like, should in theory at least make him a serious contender. Why isn't he?

While I agree that Ryan is among the best we have, he has his failings beyond what James D pointed out:

1. He is head of the budget process in the House and has not even proposed a fundamental change to an appropriate form of constructing a budget - like zero based. Even if he tried and failed, it would have instructed people just how suicidally insane our current system is.

2. Even when he is strong, he is not strong enough. E.G. first sentence "has the potential to" should be "if unchecked will shortly." This would be more accurate and stronger.

James P - We have a cloud of Black Swans that have the sky resembling a typhoon in full force. he knows the numbers. Either he thinks he knows something that we do not and he has yet to communicate - or he knows that 2016 is too late.

James,

I had to listen to the last podcast twice as I could not believe that there was someone on the planet whose ideas so exactly match my own. The only difference I can find is that I have mainly given up trying to convince others of the insane thinking, hubris and corruption that is driving us to ruin. You on the other hand make your living from it.

more power to you.

James,

Britain is Socialist and will remain so until an economic meltdown forces fundamental change. This may or may not happen. Complaint is useless; it is what it is. Those who think that the Govt. there is superior to that found in the USA, need to visit more places in the USA.......although I admit that the country as a whole is heading that way with reckless abandon.

The one area where Britain has achieved unquestionable global superiority is in the quality of the London Cabbie. Every one knows every nook and cranny of the city, and after I don't know how many fares - I have never been ripped off. However, a driver told me a few months ago that even this was changing - with Govt. trying to lower the standards of the exam to be more inclusive + upping the number of liscenses to ensure to one makes a quid.    

As I have said previously, Go East Young Man, and return after la deluge.  

The deal offered to Greece was one that did not come close to covering Greece's needs & served only to buy other EU countries and their banks some time. Even if the deal worked (and I don't see how it could) it would condemn the Greeks to a generation of depression. 

Like Blake and Hannan, I applaud the referendum and if I were a citizen of Greece, would be voting against the deal.