Tuesday, May 17, 2011

"Google has a better chance of paying its debts than the U.S. government." -CNBC



Heard this idiotic, ignorant, misinformed, comment from CNBC anchor David Faber (a.k.a "The Brain") earlier today.

How is it possible for the public to have any chance at understanding our economic realities when we constantly are exposed to the endless barrage of misinformation and ignorance that comes out of the media?

Awful...just awful.

4 comments:

Matt Franko said...

Mike,

Beowulf has posted some info around the 14th amendment to the US Constitution that could be construed that Faber could actually be arrested by Federal Authorities for actively trying to undermine the credit of the US Treasury with remarks like this...

wiki_link_http://en.wikipedia.org/wiki/Fourteenth_Amendment_to_the_United_States_Constitution

Excerpts:

"Section 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. "

"Section 4 confirmed the legitimacy of all United States public debt legislated by the Congress. It also confirmed that neither the United States nor any state would pay for the loss of slaves or debts that had been incurred by the Confederacy. For example, several English and French banks had lent money to the South during the war.[46] In Perry v. United States (1935), the Supreme Court ruled that voiding a United States government bond "went beyond the congressional power" on account of Section 4.[47] Republican economist Bruce Bartlett argues that Section 4 renders the debt ceiling unconstitutional, and obligates the President to consider the debt ceiling null and void.[48]"

"The Brain" may need a lobotomy....

Mike Norman said...

I think he already had one!

beowulf said...

Matt, I don't really think he should be arrested, it doesn't really matter what anyone says as long Tsy continues to spend as necessary to fulfill appropriation warrants. No need to stoop to conquer, the law is clearly on its side. The debt ceiling is unconstitutional because its an attempt to alter prior debt obligations and other contracts (Perry case is exactly on point).

"The Constitution gives to the Congress the power to borrow money on the credit of the United States, an unqualified power, a power vital to the government, upon which in an extremity its very life may depend. The binding quality of the promise of the United States is of the essence of the credit which is so pledged. Having this power to authorize the issue of definite obligations for the payment of money borrowed, the Congress has not been vested with authority to alter or destroy those obligations."
http://supreme.justia.com/us/294/330/case.html

googleheim said...

If the USA does not have a chance, then the big "G" in all those macroeconomic equations will relegate the big GooGle into a small g.

"G" is still for Government spending and not 'google'