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Archive for August 4th, 2011

If Jimmy Carter and Barack Obama are neck-and-neck competitors in the contest to be the public face of incompetent statism in America, then the competition in Europe is between Herman van Rompuy and Olga Stefou.

But since I’ve already crowned Ms. Stefou as the Queen of Greece, then Mr Rompuy (a.k.a., President of the Euorpean Council) is the winner by default.

And “winner by default” is a pretty good description of this statist paper pusher. I’ve previously mocked this über-bureaucrat for:

a)whining about markets downgrading Europe’s welfare states,

b) crying about whether he gets prestigious seating at bureaucratic meetings,

c) seeking to impose one-size-fits-all big government on EU nations with “economic governance,” and

d) publishing an anthology of haiku poems (this last has nothing to do with economic policy, but I can’t resist including it on the list).

Even though he has this impressive list of accomplishments,  Mr. Rompuy is not taking any chances. To cement his place in history, he is overseeing a series of disastrous bailouts and then ineffectually complaining that markets are unimpressed by his willingness to throw good money after bad. Here’s a blurb from an article in the EU Observer.

Van Rompuy, who brokered the eurozone deal on Greece, precipitated by the very same rising costs as for the Italian government, has tried to allay market fears in an op-ed published in several European newspapers. “Astonishingly,” he writes, “since our summit the cost of borrowing has increased again for a number of euro area countries. I say astonishingly, because all macro economic fundamentals point in the opposite direction.” The Greek bailout conditions are “exceptional” and mark no precedent for other countries, he added. Citing the austerity measures adopted in Italy and Spain, as well as Madrid’s low debt, Van Rompuy accused the markets of making risk assessments “totally out of line with the fundamentals.” Ratings agencies which downgraded the two countries also acted in a “ludicrous” way when putting them in the top tier of default risk countries, he claimed.

Let’s recap: The fiscal collapse of Europe is proceeding in a predictable fashion, as excessive spending and high tax rates are strangling growth and pushing red ink to unsustainable levels.

And Mr. Rompuy thinks the answer is more spending, higher taxes, and additional debt. And then this clown has the nerve to complain that markets are giving a thumbs-down. Amazing.

Even more astounding, or perhaps even more discouraging, President Obama wants America to travel down the same path.

But that’s a story for another day. Let’s close this post by looking at a couple of amusing videos, featuring the head of the UK Independence Party raking Mr. Rompuy over the coals.

I think the word “skewer” is somehow appropriate.

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Senator Rubio continues to impress with his Reagan-like efforts to restrain government and promote growth. His latest initiative is legislation to curtail rogue IRS bureaucrats who are seeking to use regulatory edicts to overturn 90 years of law.

Here are excerpts from a report in The Hill.

Sen. Marco Rubio (R-Fla.) and other Senate Republicans on Tuesday introduced a bill aimed at blocking pending regulations that would require banks to report to the Internal Revenue Service all interest deposits paid to nonresident aliens (NRA). Rubio, along with Texas GOP Sens. John Cornyn and Kay Bailey Hutchison, introduced S. 1506 because they believe the pending regulations have the potential to drive billions of dollars of deposits away from U.S. banks. A summary of the bill provided by Rubio’s office argues that this could leave U.S. banks undercapitalized and less able to lend in the U.S. “Simply put, this rule will cause billions of dollars in important NRA deposits to be withdrawn from American banks and invested in countries with less onerous reporting requirements,” the lawmakers state in the bill summary. “A capital flight of any magnitude will hurt the lending capacity of community banks and damage local and state economies — not to mention endanger those who invest in U.S. banks due to corruption, inflation, and violence in their home countries, particularly in nations like Mexico and Venezuela.” The summary also notes that Congress has explicitly exempted NRA deposits from taxation… Rubio’s bill is a companion bill to H.R. 2568, which was introduced by Reps. Bill Posey (R-Fla.), Francisco Canseco (R-Texas), Mario Diaz-Balart (R-Fla.), Ruben Hinojosa (D-Texas) and Gregory Meeks (D-NY).

This may sound like a technical issue, but this video explains why it has huge implications.

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