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Thursday, August 11, 2011

SNB Moves In, Franc Moves Back



Swiss francThe Swiss franc retreated today from the yesterday’s records against the dollar and the euro as the Swiss National Bank expanded measures aimed to tame the excessive appreciation of the currency.

The SNB repeated that a strong currency is a ”threat” to the nation’s economy. As a result, the bank decided to increase pressure on the franc:

    In the light of these developments, the Swiss National Bank (SNB) is taking additional measures against the strength of the Swiss franc. It will again significantly increase the supply of liquidity to the Swiss franc money market.

To increase liquidity, the SNB “will additionally conduct foreign exchange swap transactions”.

USD/CHF climbed from 0.7205 to 0.7257 as of 10:11 GMT and reached the intraday high of 0.7331. EUR/CHF advanced from 1.0365 to 1.0426 after it dropped yesterday to the record low of 1.0089.

If you have any questions, comments or opinions regarding the Swiss Franc, feel free to post them using the commentary form below.

Earlier News About the Swiss Franc:

    Fed Plans Keep Zero Rates till 2013, Dollar Hurt (2011-08-09)
    CHF at New Record vs. USD, Gains vs. Other Currencies (2011-08-08)
    Intervention: Way to Weaker Franc or Bluff of SNB? (2011-08-08)
    Swiss Franc Prevails Despite Intervention (2011-08-04)
    Siwss Franc Retreats From Maximums (2011-08-03)


This entry was posted on TopForexNews on Wednesday, August 10th, 2011 at 10:11 am and is filed under Swiss Franc. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

Pound Drops with Higher Trade Deficit



Great Britain poundThe Great Britain pound dropped after macroeconomic data provided today some unpleasant surprises, including the unexpected growth of trade balance deficit and decline of manufacturing.

The UK trade balance deficit widened to £8.9 billion in June from £8.5 billion in May. Traders hoped for decrease of the deficit to £8.2 billion. Manufacturing production declined with the annual rate of 0.4 percent in June. The contraction followed the advance by 1.8 percent in the month before. Market analysts predicted an increase by 0.3 percent.

Riots in London and other cities of Britain lead to massive damage to property and left one person dead. Several hundred was arrested. Police is busy with containing the riots and rumors state that army may be employed.

GBP/USD was little changed at 1.6302 as of 23:58 GMT after opening at 1.6315, rising as high as 1.6409 and falling as low as 1.6175. EUR/GBP jumped from 0.8688 to 0.8804 and GBP/JPY slipped from 126.82 to 124.49 before trading at 125.74.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

Earlier News About the Great Britain Pound:

    Pound Weakens on Worsening Consumer Sentiment (2011-07-21)
    GBP/USD Erases Losses After BOE Minutes (2011-07-20)
    UK House Prices Fall for First Time in 2011, Sterling Weaker (2011-07-18)
    Pound Falls vs. Euro on Jobless Claims (2011-07-13)
    Pound Recovers from Slump on Bad Fundamentals (2011-07-12)


This entry was posted on TopForexNews on Tuesday, August 9th, 2011 at 11:59 pm and is filed under Great Britain Pound. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

Fed Plans Keep Zero Rates till 2013, Dollar Hurt


US DollarThe US dollar slumped against some other currencies, including the euro, the yen and the franc, after the Federal Reserve kept its key Federal Fund rate near zero and signaled that it may keep interest rates exceptionally low till mid-2013.

The Federal Open Market Committee said in its statement that “economic growth so far this year has been considerably slower than the Committee had expected”. The FOMC outlined the current problems of the US economy, such as ”a deterioration in overall labor market conditions in recent months”, growing unemployment and depressed housing sector. As a result the Committee announced:

    To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent. The Committee currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.

The euro reacted favorably to the statement at first, but erased gains later. The drop was short-lived, though, and currently EUR/USD shows a strong rally. The Swiss franc reached yet another record against the greenback before retreating. The franc currently moves down against the dollar, but it’s likely just a temporary correction after a strong rally.

EUR/USD surged from 1.4176 to 1.4339 as of 20:21 GMT today. USD/JPY dropped from 77.74 to 77.03. USD/CHF slumped from 0.7545 to 0.7197 and reached earlier its new all-time low of 0.7083.

If you have any questions, comments or opinions regarding the Swiss Franc, feel free to post them using the commentary form below.

Earlier News About the Swiss Franc:

    CHF at New Record vs. USD, Gains vs. Other Currencies (2011-08-08)
    Intervention: Way to Weaker Franc or Bluff of SNB? (2011-08-08)
    Swiss Franc Prevails Despite Intervention (2011-08-04)
    Siwss Franc Retreats From Maximums (2011-08-03)
    Swiss Franc on Record Against Everything (2011-08-01)


This entry was posted on TopForexNews on Tuesday, August 9th, 2011 at 8:21 pm and is filed under Swiss Franc. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

Australian Dollar Attempts Stop Decline, Fails



Australian dollarThe Australian dollar attempted to pare its losses today after Asian stocks rebounded, but this attempt wasn’t successful, meaning that the currency heads for a ninth straight session of losses.

The MSCI Asia Pacific Index posted a decline of 1.7 percent, rebounding from the drop by 5.5 percent. The Australian currency also rebounded from its intraday decline by 2.5 percent against the US dollar, but currently resumed movement to the downside. The present economic conditions simply aren’t good for the currencies that are related to growth and commodities.

AUD/USD traded at 1.0160 today as of 9:38 GMT after falling earlier from 1.0186 to 0.9926.

If you have any questions, comments or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.

Earlier News About the Australian Dollar:

    Eighth Session of Suffering for Aussie (2011-08-08)
    AUD Down on Economic Outlook Revision (2011-08-05)
    Australian Dollar Continues Its Correction on Weak Retail Sales (2011-08-03)
    AUD Surges Against Everything on Higher Inflation Numbers (2011-07-27)
    Aussie Rises on Rate Expectations, US Problems (2011-07-25)


This entry was posted on TopForexNews on Tuesday, August 9th, 2011 at 9:39 am and is filed under Australian Dollar. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

Impact of BoJ Intervention on Yen Wanes



Japanese yenThe Japanese yen jumped against all other most-traded currencies today as traders fled to safety of the yen, fearing the financial problems of the US and Europe.

The Japanese policy makers signaled that they may take steps to curb gains of the currency. In fact, the Bank of Japan already intervened on August 4, but the impact of the move almost waned at present. This situation isn’t unlike the one in Switzerland, where the central bank also fights with appreciation of the nation’s currency and also losing this battle.

USD/JPY fell from 77.74 to 77.04 as of 9:09 GMT today. EUR/JPY went down from 110.23 to 109.74 while it reached the low of 109.09 during the day.

If you have any questions, comments or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.

Earlier News About the Japanese Yen:

    Yen Slumps on BoJ Intervention (2011-08-04)
    Yen Gains on Greece & US Debt Problems (2011-07-28)
    EU Summit Eases Need for Safety, Yen Drops (2011-07-22)
    Second Week of Gains for Yen, Will BOJ Intervene? (2011-07-16)
    Yen Declines as Chinese Economy Grows (2011-07-13)


This entry was posted on TopForexNews on Tuesday, August 9th, 2011 at 9:10 am and is filed under Japanese Yen. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

More of Sarah Palin and the Iowa State Fair


posted at 12:45 pm on August 11, 2011 by Tina Korbe
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So far, the Hot Air Express’ schedule in Ames looks like this: One campaign event down, several more to go, plus the big draws of the debate and straw poll. But, all of a sudden, no event looks to be more exciting than the Iowa State Fair Friday — and not just because a certain spotlight-coveting, fun-loving Alaskan will be there.

According to the fair’s motto, “nothing compares.” Butter sculptures! Big-name entertainment! Fair food! It’s really not that hard to figure out why Sarah Palin would want to be there. Sure, she wants to stoke speculation that she might still run for the presidency (even though my suspicion is that she won’t), but she suggests she also just wants to stick it to a president who admonished the American people to “eat their peas”:

In an email to supporters, Palin said she was “excited to try some of that famous fried butter-on-a-stick, fried cheesecake-on-a-stick, fried twinkies, etc.”

“I’ll enjoy them in honor of those who’d rather make us just ‘eat our peas’!” she said, in a dig at President Obama.

Can you really blame her for wanting to eat a fried Twinkie? (Michelle Obama could and would, of course — before she’d go back to drinking her milkshake — but that’s neither here nor there.)

Of course, Palin won’t be the only prominent politician to appear at the fair. Mitt Romney will speak at the opening ceremonies today and Michele Bachmann will speak Friday, just before the crucial straw poll. But Palin does have the distinction of being the only prominent Republican non-candidate to put in an appearance.

Fair food and speculation-stoking aside, why, really, does Palin plan to attend? From the sound of the ad she released alongside her bus tour relaunch, it might be for the purely patriotic reason of expressing pride in small-town America. It could be for self-aggrandizement, for the pleasure of standing in the spotlight just because she can. It could be for a wholly unexpected reason — an endorsement, for example (although that seems highly unlikely). Maybe Palin decided to appear as a favor to the openly campaigning candidates in Iowa who will be somewhat overshadowed by Rick Perry’s announcement Saturday. After all, her considerable weight guarantees media coverage to the state that was supposed to be the uncontested center of attention this weekend before Perry’s people leaked his plans.

But regardless of why Palin planned this particular trip to Iowa, thinking about her in relation to this appearance makes me realize she is, herself, a little like the Iowa State Fair in that she is entirely in a class of her own. Like it, she boasts excellencies — a large and apparently happy family, signature accomplishments in her home state of Alaska, books, TV appearances, a clearly-and-compellingly-articulated conservative message, beauty, charisma, energy, etc., etc., etc. Like it, she boasts eccentricities — that memorable accent, her reality TV show, the start-and-stop nature of both her governorship and this bus tour, etc., etc., etc. She draws a big crowd, nobody feels indifferently toward her and, sometimes, she palls on even her biggest fans. That, perhaps, is the most important comparison: Just as it is distinctly possible to stay too long at the fair, such that funnel cake tastes sickeningly sweet in your mouth, it is possible to promote, to debate, to discuss Sarah Palin too much (and I know I’m guilty of this, too!), such that she becomes a caricature of herself instead of a real person and even people who like her find the discussion cloying. But she owes it to herself and we owe it to her, too, to remember and acknowledge the reality of Sarah Palin just as often as we remember the myth. Like the rest of us, she’s illuminated by talents, but also marred by flaws. No one compares — and yet everyone does.

Wednesday, August 10, 2011

SNB Moves In, Franc Moves Back



Swiss francThe Swiss franc retreated today from the yesterday’s records against the dollar and the euro as the Swiss National Bank expanded measures aimed to tame the excessive appreciation of the currency.

The SNB repeated that a strong currency is a ”threat” to the nation’s economy. As a result, the bank decided to increase pressure on the franc:

    In the light of these developments, the Swiss National Bank (SNB) is taking additional measures against the strength of the Swiss franc. It will again significantly increase the supply of liquidity to the Swiss franc money market.

To increase liquidity, the SNB “will additionally conduct foreign exchange swap transactions”.

USD/CHF climbed from 0.7205 to 0.7257 as of 10:11 GMT and reached the intraday high of 0.7331. EUR/CHF advanced from 1.0365 to 1.0426 after it dropped yesterday to the record low of 1.0089.

If you have any questions, comments or opinions regarding the Swiss Franc, feel free to post them using the commentary form below.

Earlier News About the Swiss Franc:

    Fed Plans Keep Zero Rates till 2013, Dollar Hurt (2011-08-09)
    CHF at New Record vs. USD, Gains vs. Other Currencies (2011-08-08)
    Intervention: Way to Weaker Franc or Bluff of SNB? (2011-08-08)
    Swiss Franc Prevails Despite Intervention (2011-08-04)
    Siwss Franc Retreats From Maximums (2011-08-03)


This entry was posted on TopForexNews on Wednesday, August 10th, 2011 at 10:11 am and is filed under Swiss Franc. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowe

Breaking: Reid appoints John Kerry, Patty Murray, and Max Baucus to Super Committee



posted at 6:05 pm on August 9, 2011 by Allahpundit
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That’s precisely what we need to reach a grand bargain. Hard-left dial tone Patty Murray and a guy who spent the past Sunday muttering in front of TV cameras about a “tea-party downgrade.” Bonus fun fact about Murray via Amanda Carpenter: She’s the head of the DSCC this election cycle, which means there ain’t no way no how no chance she’s signing off on any deal that involves even minor Medicare reform.

Not sure what to make of Baucus, though.

    Murray is expected to co-chair the committee, officially named the Joint Select Committee on Deficit Reduction, along with a still unnamed House Republican. A spokesman for Reid did not respond to a request for comment.

    Reid’s decision to tap Murray will likely be met with scrutiny, as she is also chairing the Democratic Senatorial Campaign Committee for the 2012 election cycle. But she is also a member of leadership, a senior member of the Budget Committee, and a woman on what is likely to be a male-dominated committee.

    Baucus is chairman of the powerful Senate Finance Committee with jurisdiction over many areas, including entitlement programs, that the committee is expected to examine. Kerry, meanwhile, was selected for his stature and Senate tenure.

None of the three were members of the Gang of Six, but Baucus was part of the Biden deficit group that Cantor walked away from over taxes. Could he potentially be the seventh vote for a deal on the Super Committee? He comes from a red state, he’s an institution in the Senate, and he’s not up for reelection until 2014. He’s as insulated from a tough vote as one can be. He’s also, as noted in the quote, chairman of the Finance Committee, so if he blessed a deal, that would give it added credibility in the Senate. And he’s been reasonably good on taxes, so he might side with Republicans on tax reform. The bad news? He duly wet himself over Paul Ryan’s budget and he’s earned some fans at AARP for supporting “doctor fix,” which contributes mightily to Medicare continuously running over budget. He’s probably not signing off on any serious entitlement reform, in other words, although if the GOP can come up with some revenues via tax reform, that might encourage him to join them in a modest first step. He floated that idea himself, in fact, after Biden’s group melted down, proposing new Medicare cuts in return for new revenues. Then again, Baucus was on Obama’s Deficit Commission and ended up voting no on the final plan. Of course, so did Paul Ryan.

I’ll leave you with this thought, in case you’re under the mistaken impression that anything will be accomplished by this process:

    Congress may undermine the deal that raised the U.S. debt ceiling by failing to agree on a plan to curb the deficit and then softening the impact of automatic spending cuts that would kick in to achieve the budget targets.

    That’s the view of five former directors of the Congressional Budget Office…

    While the cuts are supposed to be automatic, Congress can delay or override them if they prove too painful — defense spending would be reduced by 9.1 percent over a decade while non-defense programs would be cut 7.9 percent. That’s what lawmakers did with the 1985 Gramm-Rudman-Hollings Balanced Budget Act, the template for the trigger.

Update: Weigel sees a new “the Democrats caved again!” narrative brewing on the left over Baucus. “So the Democrats will have one of their compromisers on the committee. Unless the GOP puts up one of its compromisers — a neo-Gang of Sixer, or someone like Bob Corker — the Baucus move alone means a committee that leans right.”

London rioter: “We’re just showing the rich people that we can do what we want”



posted at 4:45 pm on August 9, 2011 by Allahpundit
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Two clips to usher in night four of Droogfest 2011. The common thread is that in both cases you’re watching rampaging cretins behave in a quasi-civilized manner. In the first, two giggly girls chat calmly with the BBC about the “mad fun” they’re having; in the second, rioters handle a wounded boy gingerly … before proceeding to rob him. Maybe we can let the lot of them off easy with a modified version of the Ludovico technique.

If you missed it in Headlines this morning, read Brendan O’Neill’s essay on the riots as a byproduct of welfare-state decay. At the Corner, Iain Murray elaborates:

    Another left-wing friend of mine in the UK has another interesting theory — that the particular targeting of electronics and clothes shops represents an explosion of consumerism. Stay with me, because I think he has a point and I’d like to explain why. Much of the British underclass has had easy access to credit over the past decade or so — and why not, when they are on a secure income stream of state benefits — and they have spent this for the most part on TVs, video games, and “chav” fashion. That easy credit — which I should emphasize was encouraged by the loose monetary policy of Gordon Brown and Tony Blair — has now dried up, so they are looking to take for free what they previously got for nominal sums. There is more evidence for that conclusion in this BBC recording of two girls saying that the riots were about taking what they wanted, for free…

    I think what we are seeing in Britain is a conflation of two liberal dreams — that of the 1960s, in which parenting and tradition went out the window, and that of the 2000s, in which self-help was replaced by easy credit, benefits, and an all-mighty “health and safety” bureaucracy — together with the unfinished nature of the Thatcher revolution. Mrs. T enabled economic Thatcherism but was unable to finish the project of what I termed social Thatcherism, whereby a free society recognized the importance of what once were called manners.

    The result is a feral underclass without any understanding of tradition from right or left.

O’Neill ends by laying into British cops for their paralysis, a ubiquitous critique in stories about the riots after three days of window-smashing. There are a lot of reasons for that. The police have in fact held back, only now considering water cannons and plastic bullets after millions in damage. The prime minister and the mayor of London were both on vacation when the riots began and Scotland Yard’s leadership recently resigned over the phone-hacking scandal, so for several days there’s been no one in charge. The Home Secretary, who was also on vacation, is prone to saying moronic things like, “The way we police in Britain is not through use of water cannon, the way we police in Britain is through consent of communities,” even as young degenerates ransack local communities without their consent. And of course it’s comforting in a moment of chaos to focus on the failings of the police, who are, unlike the rioters (oops, I mean “protesters”), accountable to the public. Build a better force and in theory you ensure this can’t happen again. In theory:

    Business owners accused police of adopting a softly-softly approach which left their shops and businesses vulnerable to attack by baying mobs.

    While police were criticised in some quarters for being far too slow to get to riot scenes, officers were accused by shopkeepers in Hackney of standing just yards away from looters as windows were smashed and armfuls of goods were scooped up…

    Firearms units trained to use the rubber bullets are braced in case they are needed. It would be the first time ever the baton rounds have been used in British disturbances.

    Mr Kavanagh said Scotland Yard was ‘not going to throw 180 years of policing with the community away’ as the prospect of using the ammunition for the first time at a British disturbance was raised.

Imagine how bad things could get if they did that. There might be riots.

There are many ways to measure the awfulness of what’s happening but chew on these two while you watch. According to residents in Birmingham, looters are literally stealing the clothes off of people’s backs, stopping them and forcing them to strip. The Daily Mail has a too-bad-to-check photo via Twitter. Beyond that, in the Middle East and elsewhere, there’s gloating going on both by authoritarian governments, who are mocking the Brits for not liquidating all of their troublemakers on the spot, and by the victims of those authoritarian governments, who are mocking the rioters for turning their “protests” into a pretext to steal DVD players. All of which is to say, this is a complete fiasco by any yardstick.

Onto the videos. I’ve included a third (audio) clip below as a little bonus; yes, that is indeed Hulk Hogan’s voice you’re hearing. Click the image to watch.





Palin knocks it out of the park



posted at 10:05 am on August 9, 2011 by J.E. Dyer
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Few people in the public eye have said anything useful about the recent unpleasantness with the national debt and the national credit rating.  The president hasn’t.  The vice president hasn’t.  Surprisingly few of the declared Republican candidates have.  The MSM haven’t.  They’re busy trying to make the expression “Tea Party downgrade” go viral.

Indeed, at this hour of reckoning, with the Dow plunging and markets in turmoil around the world, the MSM have achieved another playground-taunt triumph with the silly Newsweek cover featuring an unflattering photo of Michelle Bachmann.  These people seem to have no sense of proportion, no judgment, no recognition that things have become serious and the time for sophomoric media jabs is past.

Who cares how they can make Bachmann look on a magazine cover?  The tabloids demonstrate several times a year that they can make the world’s most beautiful women look like something from the back of the refrigerator, if they photograph them in bad light with a telephoto lens.  The Bachmann cover is the equivalent of a slam-book entry, about as intelligent as holding your nose and chanting “You smell!” at a classmate.  Ridicule is the cheapest thing there is – and in politics, it’s usually deployed to shift the focus from a needed debate to specious topics and emotion.  I’d call it a reversion to high school, but it would be an insult even to middle-schoolers to pin it on their age group.

Meanwhile, Marco Rubio and Paul Ryan have had good, inspiring, on-target things to say about the US fiscal crisis.  Michelle Bachmann has had good things to say.  John Bolton had an important piece making the case that national security is inextricably linked with fiscal security, a much-needed point in the context of the recent debate.

But Sarah Palin came through today with a Facebook post that strikes the right tone and is at once simple, direct, and comprehensive.  It doesn’t rail at past mistakes, nor does it come across as a raised-voice, you’ve-got-to-get-this-people communication.  Palin takes it for granted – with refreshing common sense – that we are in a crisis, its features are obvious, and the task now is to deal with it, not continue to argue whether it’s really a crisis or how big it is or whose name we can pin on it.

She makes no bones about the significance of the problem we face.  I am particularly impressed with her point that if we don’t square ourselves away, the specter hangs over us of IMF staffers showing up on our doorstep with China and France and Germany arrayed behind them, ready to throw folders on a desk and start telling us how much we can spend on cable TV and incidentals each month.  Whether things would really play out for the US as they are playing out for Greece and Ireland is a valid question, but Palin is quite correct that the pitched confrontation is on the horizon now, as it was not six weeks ago – and she has the courage to face that possibility head-on.  It’s not pleasant to mention it, but it’s the right thing to do.

The last third of Palin’s post is devoted to laying out what we need to do.  Grow the economy by releasing the regulatory clamps on it, starting with the energy sector.  Cut spending and reform entitlements.  She doesn’t pretend the latter would be easy, but she faces head-on the fact that it is inescapably necessary.  I urge you to read her post for the discussion of particulars.  It is material and convincing without being in the weeds.

The piece is positive and encouraging for its forthrightness.  There is nothing “clever” to be done in this situation; it’s all straightforward.  The US federal government has to cut spending and let the economy grow, even if that means breaking the stranglehold of unions on the public trough and overruling advocacy groups and government bureaucrats who don’t want the economy to grow.  Pretending that the federal budget is too complex to be governed by the ordinary rules of accounting – or that the US is too special to be limited by the ordinary definition of fiscal solvency – is a dodge, not a sign of insight or expertise.

Palin focuses like any good executive on the big picture.  We have to cut spending and get government out of the economy’s way so it can start pumping out revenues again.  These things are increasingly obvious to everyone, and moreover, they constitute a plan.  Talking ourselves into corners about other, tangential things isn’t even interesting any more.  It feels so wrong that it’s hard to watch anyone’s news program at the moment: no one seems to be talking about what matters.

What is interesting is how few in our national political life have put the case together, as Palin has, without temporizing or bloviating.  I haven’t heard anyone else do what she does with this post.  She acknowledges the actual, enormous scope of the problem, envisions a solution, and outlines what to do to achieve it, with encouragement that it can be done.  It is sad and a little frightening that so many Americans have become unable to see this for what it is:  leadership.  Almost everyone else is focused more narrowly, on one aspect of the problem or another, and a good few commentators don’t seem to even have the vocabulary or the mental infrastructure to address the problem itself; they can only express opinions about the impossibility of the politics surrounding it.

It is the opposite of stupid to recognize the problem’s stark and simple outlines when all around you are swinging blindfolded at piñatas.  We spend too much, and we suppress economic growth and revenues with regulation.  Palin articulates that clearly.  Her ability to reach out directly through social media, and put her case in her terms, is a net positive for our current political climate.  She remains one of the best reasons to not let the MSM dictate our ideas and preferences to us.

J.E. Dyer’s articles have appeared at The Green Room, Commentary’s “contentions,” Patheos, The Weekly Standard online, and her own blog, The Optimistic Conservative.

This post was promoted from GreenRoom to HotAir.com.
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Sunday, August 7, 2011

Canadian Dollar Falls Along with Other Commodity Currencies


Canadian DollarThe Canadian continued continued to fall against the majors today, along with the other “commodity” currencies, as the global growth perspectives remained dim.

The loonie, as the currency is often called, fell to the lowest level in two weeks against the US dollar, traded with a great volatility against the euro and demonstrated its 5th straight day of decline against the Japanese yen today.

Along with the general market sentiment that the global economic growth will have to scale down, following the US deficit-cutting measures, the Canadian dollar was also influenced by the today’s bad statistics from the United States. The personal income grew slower than expected in June (0.1 percent vs. 0.2 percent forecast), while the personal spending fell by 0.2 percent (with a 0.1 percent gain forecast).

USD/CAD rose from 0.9559 to 0.9600 as of 16:47 GMT today, with a daily high at 0.9618 — the lowest level since July 18. EUR/CAD rose only slightly — from 1.3626 to 1.3632. CAD/JPY declined from 80.91 to 80.34.

If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

Earlier News About the Canadian Dollar:

    Loonie Declines as Economy Contracts (2011-07-29)
    CAD Sets New Multi-Year Record on US Crisis Expectations (2011-07-26)
    Canadian Inflation Slows, Loonie Retreats (2011-07-22)
    CAD Reaches Three-Year High vs. USD (2011-07-22)
    BOC Rate Statement Invigorates Loonie (2011-07-19)


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