Asian Markets Fall in Monday Trading After U.S. Downgrade

At New York Times, "Asian Markets Fall Despite Efforts by Policy Makers."

But see Los Angeles Times, "No rush from U.S. Treasuries, as yields fall while Asian stocks slump":

U.S. Treasury bonds' status as a haven seemed intact in Asia on Monday, as yields fell despite Standard & Poor's downgrading of Uncle Sam's credit rating on Friday.

It may have helped Treasuries that Asian stocks were broadly lower, as some investors bailed out ahead of European and U.S. equity trading.

The 10-year Treasury note yield slid to 2.50% in late Asian trading, down from 2.56% on Friday.

Shorter-term yields also fell. The two-year T-note dropped to a record low 0.26% from 0.29%.

More at that link above, and see, "What the U.S. debt-rating cut may mean for markets":

If investors dump Treasuries, where would the money go?

They don’t have a lot of options if they want to keep their money in something relatively safe.

The bond markets of other countries still rated AAA -- including Germany, Canada, France, Finland and Australia -- are far smaller than the U.S. debt market. The appeal of Treasuries in part is their great liquidity, meaning it's easy for investors to instantly buy or sell bonds.

What’s more, Europe has its own worries: The continent’s government-debt crisis has worsened in recent weeks, with investors now fearing that Spain and Italy could be forced to seek European Union bailouts, following the paths of Greece, Ireland and Portugal over the last 15 months.

Some investors are likely to run to gold, another classic haven. Gold has been streaking this year, rising 16% year-to-date through Friday, to $1,648.80 an ounce.

Haven’t Treasury interest rates been falling lately, anyway?

Yes. Investors have been pouring cash into Treasury securities since mid-April, driving interest rates down, as global economic growth has faded. The rate on the 10-year Treasury note, a benchmark for mortgage rates and other long-term interest rates, fell as low as 2.40% last week from 3.59% in mid-April.

Because worries about the economy have only worsened in recent weeks, many analysts believe that any jump in Treasury rates related to S&P’s downgrade could quickly bring a torrent of buyers into the market, happy to snag higher yields.

“The fundamentals of U.S. and global growth are weakening, and that’s a fertile time to be in Treasuries” as a haven, said William O’Donnell, head of Treasury-bond strategy at RBS Securities.

RELATED: At CNBC, "No Chance of Default, US Can Print Money: Greenspan" (via Memeorandum).

Back From Etnies

This photo's not so focused, and I didn't take any others, since I couldn't get a good vantage point. I'm standing up on the planter as it is.

I'm going to look into getting my own skateboard this week. I need to see how the summer funds are holding out. I'm not paid until September 1st, a couple of weeks after the semester begins (and we're taking the boys to Las Vegas for LOVE next weekend). So it's either a new board this week or hold off a bit, although I'm getting the bug to go skating again. Being with my young son all the time is getting me fired up. I've been enjoying seeing the thrills of skateboarding through the experience of my boy. It's an old saying but it occurred to me today it's true, when my son came up to where I was sitting, after a couple hours of skating, and said, "I want to come back tomorrow!" I told him sure, and I thought what am I waiting for on my own skating? You're only young once!

RELATED: Check the Etnies Skatepark homepage. There's going to be a grand opening for the expansion on August 20th.

America Gets Downgraded

At Wall Street Journal, "A spend and tax policy mix always leads to economic decline":

... is there anything that S&P said on Friday that everyone else doesn't already know? S&P essentially declared that on present trend the U.S. debt burden is unsustainable, and that the American political system seems unable to reverse that trend.

This is not news.

In that context, the Obama Administration's attempt to discredit S&P only makes the U.S. look worse—like the Europeans who also want to blame the raters for noticing the obvious. Treasury officials and chief White House economic adviser Gene Sperling denounced S&P for relying on a Congressional Budget Office scenario that overestimated the U.S. discretionary spending baseline by $300 billion through 2015 and $2 trillion through 2021.

But even adjusting for that $2 trillion would only reduce U.S. publicly held debt to 85% or so of GDP—still dangerously high. And that assumes that recently agreed upon spending caps are sustained over a decade, something which rarely happens.

We think the larger problem with S&P, Moody's and Fitch is that they make no distinction over how a nation balances its books—whether through tax increases or spending reductions. Like the International Monetary Fund, the raters care only about balance.

This takes too little account of the need for faster economic growth, which is the only real path out of a debt crisis. Britain's government has earned rater approval for its fiscal consolidation, but its increases in VAT and income tax rates are hurting its tepid recovery. Letting the credit raters dictate tax increases is the road to an austerity trap.

The real reason for White House fury at S&P is that it realizes how symbolically damaging this downgrade is to President Obama's economic record. Democrats can rail all they want about the tea party, but Republicans have controlled the House for a mere seven months. The entire GOP emphasis in those seven months—backed by the tea party—has been on reversing the historic spending damage of Mr. Obama's first two years.

Continue reading.

IMAGE CREDIT: The Astute Bloggers.

Etnies Skatepark Expansion

Etnies Skatepark in Lake Forest has opened a huge new skatepark addition. See O.C. Register, "Expansion done, skaters enjoy 'perfect' Etnies Skatepark." And at TransWorld Skateboarding, "Final Expansion Will Make It the Largest Free Public Skatepark in the U.S."

I'm taking my kid over there right now. I'll post some pics later.

The Progressive-Left's Communist Holocaust Denial

Judson Phillips, leader of Tea Party Nation, is trending at Memeorandum for his statement that...

I detest and despise everything the left stands for. How anybody can endorse and embrace an ideology that has killed a billion people in the last century is beyond me...

Actually, the numbers of those killed under communist totalitarianism probably don't reach one billion for the 20th century, but certainly hundreds of millions were killed during the rule of the Soviets to Communist China, with a turn at genocide in the "paradise" of Cambodia. One commenter at Alan Colmes' "Liberaland" compares the history of left-wing genocide to U.S. support for "death squads in El Salvador." That's the kind of moral equivalence that allows the left's search for ideological utopia to continue and thrive. Jamie Glazov wrote on this specifically, "Cold War Revelations and 'Progressive' Holocaust Denial":

The Western "progressive" milieu's refusal to acknowledge Communist crimes is, of course, rooted in that disease with which we have become all too familiar in the second half of the twentieth century: anti-Americanism. It explains well why not one Revisionist historian, including Gabriel Kolko, has come forward to apologize for his errors. However, the refusal to acknowledge grievous faults on the Cold War, and to seek refuge in other politically correct orthodoxies, is all part of a larger phenomenon: Holocaust denial. A clear analogy can be made between the neo-Nazi Holocaust denial and the Left's refusal to acknowledge Communist Holocaust. In denying that the genocide of Jews occurred, Holocaust denial perpetuates anti-Semitism and keeps it alive. By erasing historical memory, Holocaust denial gives birth to moral relativism, which, in turn, instills a mindset that facilitates the possibility of yet another Holocaust. Holocaust denial, in other words, is the craving for another Holocaust.

This is precisely the case in the Western Left's refusal to acknowledge the genocidal consequences of the socialist idea in the twentieth century. The causes of this Holocaust denial are directly rooted in the Holocaust itself. The Nazi Holocaust, for instance, was the logical outcome of anti-Semitism, but anti-Semites need to keep anti-Semitism alive. Thus, anti-Semitism's existence is kept alive easier if its darkest consequences are supported but simultaneously denied. So too, if Stalinism was the inevitable result of the pursuit of equality, then the belief in the possibility of equality must be kept alive by the socialist milieu. The historical memory and significance of the Gulag, however, must be wiped out.

It's the progressive-left's Communist Holocaust denial. It's alive. And it's deadly.

PHOTO CREDITS: Wikipedia Commons.

The Debt Downgrade Blame Game

I was up in time for the Sunday news shows. I flipped back and forth for a minute between ABC and NBC and finally settled on "Meet the Press." John Kerry and John McCain were interviewed, forgettably, with the exception of McCain's comments on Afghanistan. But the roundtable discussion was a keeper. Former Federal Reserve Chairman Allan Greenspan stole the show (a bit of which can be seen here). But frankly the reason I didn't channel surf further was Rachel Maddow. Maddow is maddening. The S&P downgrade dominated the discussion, and Maddow's entire shtick was political. David Gregory asked her about economic implications and she segued into an attack on "Republican intransigence." Check it out:

Visit msnbc.com for breaking news, world news, and news about the economy

Maddow was sticking like glue to S&P's press release, which claimed that the downgrade was a comment on political gridlock in Washington. But Maddow's fascinating because she perfectly encapsulates all that's wrong with the Beltway media mindset: She blames Bush for the crisis, citing the revised GDP numbers to argue that "the hole we've been getting out of is even deeper than we thought." Well, I guess if you're in a hole you stop digging, but the Obama-Dems 2012 budget was pegged to add $7.2 trillion in new debt over the next decade, and that's after racking up $1.7 trillion after the administration's first year in office. Congressional Republicans stood up to this, and that fortitude so enraged the progressive political class that "tea party terrorists" were claimed to be the greatest threat to national security since Nazi Germany. But Maddow goes on. And bless his heart, but Alex Castellanos fails to get a smackdown rebuttal until much later in the broadcast. I reported on Janet Daley's essential piece earlier, "A Capitalist Economy Can't Support a Socialist Welfare State." The GOP talking point has to focus on the unsustainability of big-government entitlements. Republicans won the day by standing firm, and the S&P downgrade ultimately will damage Democrat reelection prospects next fall, hence Maddow's desperate efforts to spin this as not an economic issue at all, but one of tea party "intransigence."

In any case, see Karl at Patterico's Pontifications, "For Whom the Downgrade Tolls":

In sum, the S&P downgrade marks a post on the road where progressive demagogy loses its power. The downgrade marks a post on the road to extinction for 19th-20th century progressivism. That’s why the Obama administration — and true progressive ideologues — made S&P their first target, however futile the gesture.

RTWT.

I wouldn't separate the partisan left from the ideological left so much (Maddow is both, for example), but it's a really perceptive essay otherwise.

UPDATE: Linked at Atlas Shrugs and Yid With Lid. Thanks! Also linked at Blazing Cat Fur!

A Capitalist Economy Can't Support a Socialist Welfare State

The obvious realities are the ones people most desperately resist, especially progressives, who live in a utopian world where higher taxes and endless spending are held to promise a classless, want-free society, which is impossible.

See Janet Daley, "If we are to survive the looming catastrophe, we need to face the truth" (via Memeorandum):

Contrary to what the Obama Democrats claimed, the face-off in Congress did not mean that the nation’s politics were “dysfunctional”. The politics of the US were functioning precisely as the Founding Fathers intended: the legislature was acting as a check on the power of the executive.

The Tea Party faction within the Republican party was demanding that, before any further steps were taken, there must be a debate about where all this was going. They had seen the future toward which they were being pushed, and it didn’t work. They were convinced that the entitlement culture and benefits programmes which the Democrats were determined to preserve and extend with tax rises could only lead to the diminution of that robust economic freedom that had created the American historical miracle.

And, again contrary to prevailing wisdom, their view is not naive and parochial: it is corroborated by the European experience. By rights, it should be Europe that is immersed in this debate, but its leaders are so steeped in the sacred texts of social democracy that they cannot admit the force of the contradictions which they are now hopelessly trying to evade.

I discussed the political angle previously, "Time for Institutional Reform? Well, Only When Democrats Are Losing." But read Daley all the way through. Progressives argue that "politics is broken" when the people revolt against the socialist political class. If folks want to fix what's broken they need to look at what we're spending. Are we going to cut spending and reduce the size of government? It'll take a helluva lot more than downsizing defense. But America's Obama-Democrat-Socialists are impervious to reality. The reckoning is coming in 2012. Folks always say this election is "the most important election in my lifetime." I usually don't, but with the credit downgrade and America's military abusively stretched thin around the globe, my normal optimism is found wanting.

More on this in upcoming posts.

IMAGE CREDIT: The People's Cube.

That's Creepy? ABC's Lara Spencer Runs Her Hand Through Jon Bon Jovi's Hair During On-Air Interview

It's not that creepy, but check NYDN, "Lara Spencer and other reporters getting too close for comfortm creepy in on-air segments." Looks like Bon Jovi doesn't mind either. See, "The Hair Is Shorter, but the Career Goes On and On: Jon Bon Jovi on Longevity, Jersey and Outselling Justin Bieber."

North London Riots After Police Killing

At Chicago Tribune, "Riot hits north London following police shooting, double decker bus and patrol cars set ablaze."

And from Nile Gardiner, at Telegraph UK, "Tottenham riots: how long before the shameless Left starts blaming the Conservatives for the criminal actions of mindless thugs?":

Red Hot Chili Peppers Are Back

At Los Angeles Times, "A new beginning for the Chili Peppers: After a rough patch, the veteran L.A. band is back with a new guitarist and a new album due out this month."

What Do We Say When Johnny Comes Home?

One of my favorite anti-war songs, from T.S.O.L., mainly because it's so haunting on the apathy. Joe Wood sings on "American Zone," during a period when Jack Grisham had left the band. I really enjoyed the studio recording, but I don't see it online, so just turn this up on your tablet:

There's blood on the streets again today
All the people dying what a price we have to pay
Around the world they're fightin'
It's not that far away
feel the darkness
Can we change our ways?

[Chorus:]
We live in the American zone
Free of fear in our American home
Swimmin pool and digital phone
What do we say when Johnny comes home

Johnny just got back from war today
Beruit weekend, the powder keg
He was 20 years old and he lost both of his legs
We're all really sorry today

[Chorus]

What do we say
What do we say
What do we say
When Johnny comes home
and he lost his legs.

RELATED: "Washington Mourns U.S. Troops Killed in Afghan Helicopter Crash."

Fresno State Sweet Corn Is Best-Kept Secret No More

I got a kick out of this story, which ran on the front-page of the Los Angeles Times, "Customers stalk Fresno State's sweet corn."

Reminds me of my dad a little too. We used to go to some local produce stands to buy fruits and vegetables. You're surrounded by agriculture up there, so it brings back fond memories. And Fresno State is world-renowned for its ag programs anyway. If we don't move out of state, we'll probably retire up that way, although that's still a long time from now.

Joseph Nocera Apologizes

It takes a while to get around to it, but he's sincere, which is unusual for progressives. See, "The Tea Party, Take Two." (Via Astute Bloggers.)

Los Alamitos National Guardsman Holds One-Man Vigil for Troops Killed in Afghanistan

I felt so hollow when I first heard the news, and I know that the war's been going on so long now that for a lot people, beyond the initial sadness, there probably wasn't a whole lot of reflection about the sacrifices. So, this is something honorable: "One-Man Vigil for the ... Troops Killed Saturday."

Rawley's

Good stuff at Maggie's Farm, "Best Hot Dog in the Northeast, right off I-95 in Fairfield, CT."

August Birthdays

My mom turned seventy-five earlier this week. President Obama turned fifty on Thursday. And Lucille Ball would have turned 100 yesterday.

My youngest boy's going to be 10 years-old next week, but we had a little cake and ice cream party for him earlier. A few of his friends from school came over. They opened presents and played video games (the streamers are still up at top below, and not too messy). And then yesterday I took my boy down to my friend Mikey Hirsch's skateboard pro shop, So Cal Skateboards. I got him a Nijah Huston street skate for his birthday, seen at bottom. Nijah won the street Gold Medal at the X-Games last week, and my son digs him.

'Rich Man, Poor Man'

Afterburner, with Bill Whittle:

Whittle is speaking Thursday in Newport Beach, so look for a report.

Amilya Antonetti, Small Business Owner, Slams President Obama — 'I Don't Care If You're Red or Blue ... What Are You Doing to Our Country?'

She really unloads toward the end of the clip, via Memeorandum:

Rick Santorum's Family Off Limits to the Media

Robert Stacy McCain continues his coverage of the Iowa campaign: "Rick Santorum’s Iowa Barn Party." And here's Robert on some of the Santorum campaign's press rules:

Karen Santorum with her two oldest daughters, Sarah and Elizabeth. Right after I took this photo, Santorum’s press aide told me that the family are “off limits” to the media. But, of course, I’m just a friend of Lisa Graas, right? It’s not fair to treat me as “media.”

A beautiful family.

Related: At the Des Moines Register, "Santorum: Credit downgrade another example of Obama’s ‘epic failure’ in leadership." And from the Ames Tribune, "Santorum: Iowans 'can have a profound impact'."

And see New York Times, "Republicans Jockey as a Big Week Begins in Iowa."

Widener's Dean Linda Ammons Goes After Law School Professor Lawrence Connell

I read about this a couple of times earlier this year, and William Jacobson has an update: "Widener Law School goes Soviet, demands law professor undergo psychiatric evaluation."

Professor Connell was exonerated in a university disciplinary hearing, and William notes:

The faculty committee which heard the evidence found that Connell did not violate any university policy with regard to the allegations of racist and sexist conduct. The committee report, available exclusively here, while it ultimately vindicates Connell, is a depressing narrative of the sorry state of political correctness and race/sex politics on campus, in which the feelings and reaction of accusers carries as much weight as the objective reality of the statements made. While Connell was vindicated on a wide range of charges, this case surely will have a chilling effect on academic freedom on campuses as professors now know that regardless of the context, they are at risk of the subjective feelings of those with an agenda.

Read the whole thing. And background at Frontpage Magazine, "The Persecution of a Professor."

What's interesting to me is that, from what I can see, the attacks against Professor Connell were launched almost exclusively by Widener's Law School Dean, Linda Ammons. Checking her bio at the university's website, it turns out, no surprise, she's a "critical race feminist." And she's black, of course, a fact that in a rational world wouldn't matter a bit, but here in fact serves as the key variable doing most of the explanatory work. Connell mentioned the term "black folks" during classes, and was attacked as "racist." He'd also used Ammons as the subject of his classroom hypotheticals, which is apparently a completely harmless tradition going way back in the profession. After the university panel urged the administration to drop the charges against Connell, Ammons (or others in the administration) recruited students to make new charges, which allowed the witch hunt to continue. What William's talking about at his post is the requirement that Connell undergo a psychiatric evaluation as part of his reinstatement --- after he was already cleared of wrongdoing. The university, driven no doubt by Ammons, dug deep into campus regulations to find something, anything, with which they could convict Connell. They're alleging that his defense of himself, which included an explanatory e-mail to the university, was an act of "retaliation" in violation of college codes and his faculty contract, and that he should be suspended for a year. The university agreed with Dean Ammons' recommendation. It's perverse and pure evil. One must logically surmise that Dean Ammons' mind has been literally poisoned by years of progressive legal and ideology training in victimology and recrimination. Professor Connell is a middle-aged white man who has allegedly deviated from the accepted narrative. And for that, nothing less than complete professional destruction is pursued by his enemies. I'm reminded of Ann Althouse's quote, "'Isn't it funny the way lefties are, at bottom, puritanical about sex?'," because the same kind of insane, politically correct fanaticism has been driving the libelous allegations of sexual harassment that I've been defending against.

It's unreal.

Read the comments about this at Volokh, especially this one from "Blue":

Dean Ammons has now comprehensively crossed the line into Evil.

Word.

Michele Bachmann: 'President Obama is Destroying the Foundations of the United States Economy'

Via The Other McCain, "VIDEO: Bachmann Demands Resignation of Treasury Secretary Timothy Geithner."

Also at Gateway Pundit, "Michele Bachmann: “I Call on President Obama to Demand Resignation of Secretary of Treasury Timothy Geithner” (Video)," and "Geithner Flashback: “There’s No Chance US Will Lose Top Credit Rating” (Video)."

Taliban Shoot Down U.S. Copter in Afghanistan

At Los Angeles Times, "31 U.S. troops, 7 Afghans killed in Taliban attack on NATO helicopter."

In a rare event, Taliban insurgents shoot down a Chinook helicopter with a rocket-propelled grenade near Kabul. It's the largest single-incident loss of military lives since the war's start.

And at New York Times, "31 Americans Killed as Taliban Shoot Down a Copter." (Via Memeorandum.)

Polar Bear Kills British Teenager in Norwegian Arctic

At Telegraph UK, "Nature's brutal lesson for young Arctic explorers."

Also at Scottish Daily Record, "Polar bear rips through tent and kills British teenager in camp attack terror."

Robert Stacy McCain Reports from Des Moines

See: "Fear and Loathing at the Quality Inn."

Pawlenty is pulling his ad buys from Iowa three days before the straw poll, but these spots are flooding the cable channels right now:

Stacy has more on what's shakin' in Iowa.

Progressive Shouts 'Sic Semper Tyrannis' at Scott Walker

It's the "new civility," remember?

Via Althouse:

The Debt Deal and the Progressive Crack-Up

From Peter Berkowitz, at Wall Street Journal (also Google or Sankei Digital):

In the congressional elections of 2010, the electorate, led by the tea party movement and disaffected independents, rendered its judgment on the president's priorities. The people dealt him and his party a historic midterm defeat, producing large Republican gains in the Senate and a comfortable majority in the House, including 87 freshmen.

The voters' message was clear: Cut spending, compel the government to live within its means, and put Americans back to work. In short, the president and his party badly overreached in 2009 and 2010; and in 2011 the Republicans, to the extent their numbers in Congress allowed, have effectively pushed back.

But that's not how progressives have tended to see things. They have ferociously attacked congressional Republicans, particularly those closely associated with the tea party movement, with something approaching hysteria ...

The use of crude and violent language to condemn conservatives as enemies of the state, the gross manipulation of law to make the Constitution say whatever is politically expedient, and indifference to the actual arguments made by their political opponents—these are all-too-familiar progressive vices. They were exercised with abandon in the fury with which progressives responded to the complex questions raised by the Supreme Court's decision in Bush v. Gore, the detention of enemy combatants at Guantanamo Bay, and the invasion of Iraq. Tea party hatred is the successor of and stems from the same sources as Bush hatred.

Of course, a good bit of progressive vituperation can be chalked up to the ordinary passions of democratic politics, which can be high stakes and is a contact sport. But in the debt-limit crisis, the hypocrisy of progressives reached truly breathtaking proportions ...

The progressive mind is on a collision course with itself. The clash between its democratic pretensions and its authoritarian predilections has generated within its ranks seething resentment for, and rage at, conservatives. Unless progressives cultivate the enlightened virtues they publicly profess and free themselves from the dogmatic beliefs that undergird their political ambitions, we can expect even more harrowing outbursts to come.

Be sure to read it all.

We seem to have the same general dynamic every so often of late, during the Gabrielle Giffords shooting, for example, and more recently with Anders Breivik and now the debt ceiling debate. Berkowitz pretty much nails it, and of course James Taranto consistently hammers progressive idiocy and the media's hopeless partisanship. This is why I keep blogging. Progressivism is destroying this country. We need to pushback and continue the fight. 2012 is looking good too, so there's hope!

Who's to Blame for Terrorism?

From Cliff May, at National Review:

Who deserves the blame for the terrorist attacks in Norway? My answer would be the perpetrator and no one else — unless it turns out there really is a modern Knights Templar or some other organized movement that sent him on his mission of mass murder.

But there are those who disagree, who see this atrocity as part of a wider conspiracy — or, perhaps, as a convenient stick with which to beat their political and ideological opponents.

One example: The New York Times last week ran an editorial arguing that Anders Behring Breivik was “influenced by public debate and the extent to which that debate makes ideas acceptable.” The “broader” issue, says the Times, is that “inflammatory political rhetoric is increasingly tolerated.”

Which raises the questions: Who decides what constitutes inflammatory rhetoric? And if such rhetoric is unacceptable and intolerable, who should censor it and by what means? (Memo to young readers: Back in the day, great newspapers were defenders of free speech, including that which some would see as inflammatory.)

Great piece. Coolly reasoned. RTWT.

'Rhinestone Cowboy'

Heard it yesterday while out driving my wife's new Jeep Liberty (been meaning to post pics, and no excuses other than lagging). She's got Sirius radio in there, and she loves it. What a variety!

NewsBusted: 'Bachmann spends about $5000 on hair and makeup'

Via Theo Spark:

U.S. Urges Citizens to Leave Syria Immediately

At Jerusalem Post:

State Department warns that given the "ongoing uncertainty and volatility" American citizens are urged to leave immediately while transportation is still available.

See also New York Times, "Broadcasting Hama Ruins, Syria Says It Has Ended Revolt."

Reactions to Fjordman's Coming Out

Peder Jensen, a.k.a., Fjordman, is covered at New York Times, "Blogger Cited by Norway Killer Comes Forward to Denounce Him."

Folks might want to read Gates of Vienna, "The Forced Resignation of Fjordman."

Also, Andrew Bostom, at Big Peace, "Fjordman, Fairness, And The Brevik Mass Murderer."

Added: At Blazing Cat Fur, "Breaking! Fjordman A Jew...or at least part Jew... or he looks kinda Jew..."

U.S. Loses AAA Rating from Standard & Poor's

At Reuters, "United States loses AAA credit rating from S&P."

I'll update with reactions in a few minutes ...

6:27pm PST: At Doug Ross, "He's Historic, Alright: Standard & Poor's Downgrades US Debt to AA+." And a Memeorandum thread.

6:51pm PST: An analysis at Wall Street Journal, "S&P Downgrades U.S. Credit Rating":

WASHINGTON—A cornerstone of the global financial system was shaken Friday when officials at ratings firm Standard & Poor's said U.S. Treasury debt no longer deserved to be considered among the safest investments in the world.

S&P removed for the first time the triple-A rating the U.S. has held for 70 years, saying the budget deal recently brokered in Washington didn't do enough to address the gloomy long-term picture for America's finances. It downgraded U.S. debt to AA+, a score that ranks below Liechtenstein and on par with Belgium and New Zealand.

The unprecedented move came after several hours of high-stakes drama. It began in the morning, when word leaked that a downgrade was imminent and stocks tumbled sharply. Around 1:30 p.m., S&P officials notified the Treasury Department they planned to downgrade U.S. debt, and presented the government with their findings. But Treasury officials noticed a $2 trillion error in S&P's math that delayed an announcement for several hours. S&P officials decided to move ahead anyway, and after 8 p.m. they made their downgrade official.

Liechtenstein! I don't believe it!

8:12pm PST: At Zero Hedge, "S&P Downgrades US To AA+, Outlook Negative - Full Text."

'In For The Kill'

At the request of my youngest, and I really like La Roux:

Another version here (reminds me of Siouxsie Sioux).

'Money Doesn't Move Around in Ways That Are Unfair'

I watched Rachel Maddow last night (I know, a glutton for punishment). Maddow interviewed Ezra Klein on the economy, of all people. You'd think she'd get an economist, or something. I just rolled my eyes in any case, not just for poor Ezra's inexperience, but for Maddow's leading questions. She was trying to get Ezra to say that the crisis was essentially European, not American. She went on about how it wasn't a problem specific to the U.S. Markets are global, of course, and unhappiness with the debt deal and fears of a recession triggered a sell-off. Ezra didn't go for the bait, in any case. It was totally uninformative, and here he is on "Morning Joe" getting beat up by Rick Santelli, the tea party guy. Santelli schools the poor boy on the realities of markets. Folks are picking up on Ezra's whining about how if there's another recession, "it's going to be painful and it is going to move money around in ways that are unfair..." Typical progressivism, and Santelli lets him have it:

Via Hot Air, NewsBusters, and Verum Serum.

John Kerry: Media Should Not Give Time to Tea Party

The left's elitist fallback position is authoritarianism and suppression of dissent, but you knew that already.

At The Blaze, "JOHN KERRY: MEDIA HAS ‘RESPONSIBILITY’ TO ‘NOT GIVE EQUAL TIME’ TO TEA PARTY." Also at Memeorandum.

Long Knives Out for Michele Bachmann?

Yep, according to Robert Stacy McCain, who's on the ground in Des Moines, "Long Knives in Iowa."

And check this Google link for the click through to Wall Street Journal, "Behind a GOP Contender's Iowa Surge."

MARION, Iowa—To understand why presidential candidate Michele Bachmann has surged in Iowa, watch when she is handed a baby. On a recent stop here, she took off her bracelet, dangled it before the infant and cradled himDuring another campaign appearance, Ms. Bachmann climbed down from the stage to take the hands of a woman who asked a question, holding them as she answered. Meeting a teenager with Down syndrome, the Minnesota congresswoman swept him up in a hug, then signed his T-shirt.

Ms. Bachmann has built a national reputation for hard-line conservative stances—most recently, she bucked her own Republican leaders to oppose the debt-ceiling compromise—and her repeated vow to retire President Barack Obama.

But here in Iowa, the tough rhetoric is sheathed in a soft presentation. Ms. Bachmann hugs, dances and offers girl talk on the campaign trail—"That's a rockin' shirt!"—as if baking her steely conservatism into a warm apple pie. while he teethed on the pearls.

It's true. She's the warmest in person!

Kate Upton Beach Bunny Rule 5

A follow-up to, "Beach Bunny Swimwear at Mercedes-Benz Fashion Week." More Kate Upton, as promised:

Also blogging, Randy's Roundtable, "Thursday Nite Tart: Michelle Vawer."

Check back for Rule 5 updates through the weekend!

BONUS: All around blogging available at Blazing Cat Fur.

Ezra Levant Interviews Mark Steyn

Mark Steyn's new book, After America, is out Monday. Pundette already has her copy.

And Blazing Cat Fur has the interview, "Video: Ezra Levant Interviews Mark Steyn on SunTV's 'The Source'."

Rep. Joe Walsh: 'I'm Not a Terrorist'

I like the video, but Rep. Walsh is an alleged deadbeat dad. I guess he's fighting it. See Chicago Tribune, "Walsh: I'll privately fight child support claims," and Northwest Herald, "Walsh tries to clear air at town hall-style meeting." (Added: A Memeorandum thread.)

The Keynesians Have Fired All Their Ammo and Here We Are

At Wall Street Journal, "The Global Rout."

Just read that whole thing. Nation-states can't afford their entitlements, and "structural reforms" are unavoidable. Better to do it earlier than later, before we end up like Greece. President Obama ... are you listening?

Senator John Cornyn: 'Time to Give GOP New Mandate to Govern'

From the Texas Sanator, at The Houston Chronicle:

With the support of the American people, Republicans told the president that raising taxes during a weak economy was unacceptable. Once again, the president backed down. And that option came off the table as well.

Republicans held the line on taxes and canceled the president's blank check. We won the argument that spending cuts are the key to reducing our debt and balancing our budget. That's pretty good work for a party that only controls one-third of one-half of the federal government.

Yet despite refocusing the debt-ceiling debate on out-of-control federal spending, the actual spending cuts in the compromise bill are too small. The $2.1 trillion in potential debt reduction is far less than we need to prevent a downgrade in the U.S. credit rating, according to many analysts. All the spending cuts so far are backloaded, with only $21 billion scheduled to be cut from next year's deficit. The Pentagon is specifically targeted for spending cuts, even as our troops are fighting three wars and other security threats loom on the horizon.

So I sympathize with my colleagues, as well as many Republican candidates, who say that the compromise bill does not fix the problem. They are right. A far better alternative was Cut, Cap, and Balance. A far better budget is the Pathway to Prosperity. I voted for both of those plans, and I wish we had the votes to enact both of them into law.

RTWT.

Republicans are looking ahead to 2012.

See also New York Times, "Republicans Set Sights on Balanced Budget Amendment."

Photo Credit: Wikimedia Commons.

Obama's One Term Presidency

I wrote yesterday morning that things were "not looking good for Obama and the Democrats." The thought came to me in a flash as I looked over the economic news. If Barack Obama's anything, it's a good campaigner, and hence I've been reluctant to bet against his reelection. But with folks talking about a double dip recession, and with unemployment likely to remain high regardless of economic growth rates, I think the GOP's chances are looking better than ever. Barack Obama will be a one-term president, I'm confident. And apparently, so are others, or at least there's some pessimism in the MSM that I don't recall seeing. At Politico, for example, "Obama's big drags":

The politics of the debt fight were a drag for President Barack Obama, yanking his popularity to new lows. Here’s an even bigger drag: Obama emerges from the months-long fracas weaker — and facing much deeper and more durable political obstacles — than his own advisers ever imagined.

The consensus has been that for all his problems, Obama is so skilled a politician — and the eventual GOP nominee so flawed or hapless — that he’d most likely be reelected.

Don’t buy into it.

This breezy certitude fails to reckon with how weak his fundamentals are a year out from the general election. Gallup pegs his approval rating at a discouraging 42 percent, with his standing among independents falling 9 points in four weeks.

His economic stats are even worse. The nation has 2.5 million fewer jobs today than the day Obama took office, a fact you’re sure to hear the Republicans repeat. Consumer confidence is scraping levels not seen since March 2009.

Where’s the bright spot? Hard to see. Obama has few, if any, domestic achievements that enjoy broad public support. No one assumes employment, growth or housing prices to pick up much, if at all — something Obama is essentially powerless to change. And the political environment and electoral map are significantly tougher than in 2008, especially in true up-for-grabs states.

It's long piece. Continue at the link.

RELATED: FWIW, see Andrew Hacker at New York Review, "The Next Election: The Surprising Reality." According to Hacker, "Although it is never openly stated, there are Americans who don’t want to be governed by a black man." (Racism, wouldn't you know?) Beyond that (as part of a book review), Hacker's main argument is about turnout: Obama's toast if he can't generate the kind of voter (and youth) enthusiasm that propelled him to victory in 2008. And if that's the case, I'm even more confident Obama's a one-termer. ("Hope & Change hasn't been all that great for young folks.)

More Than 12 Million Facing Starvation in Somalia

This just makes me sad. Forget politics and political science theory. I wish we could do something.

At Los Angeles Times, "Somalia famine spreads to 3 new regions, U.N. says":

Reporting from Johannesburg, South Africa

advertisement

With hunger in the Horn of Africa dramatically worsening, the United Nations on Wednesday added three more regions of Somalia to the list of areas it says are stricken by famine.

More than 12 million people are facing starvation, with children particularly vulnerable. The U.N. last month declared that two regions of Somalia were suffering from famine, and it said Wednesday that the famine was likely to spread across most of Somalia in coming months, as well as parts of Kenya, Uganda and Ethiopia.

Somalia is struggling with its worst drought in 60 years, and 3.7 million Somalis are in crisis, mainly in the south — creating Africa's most serious hunger crisis in two decades. Refugee camps in the capital, Mogadishu, are now affected as well, U.N. agencies said.

Shocking images of those suffering have resulted in an increase in aid in the last two weeks, after donors' earlier sluggish response, but violence in the south of the country has limited humanitarian agencies' access.

The U.N. is seeking to raise $1 billion to address the crisis.

I'm researching relief agencies, by the way. I'll make a contribution, but so much gets wasted on overhead and corruption I'm wary. More on that later.

Charles Johnson Denies Obsession with Pamela Geller While Organizing Book Defamation Campaign Against Her on Amazon

Charles Johnson responded to my essay, "Obsessed Much? Charles Johnson Has Written Ten Posts Attacking Pamela Geller Since Anders Breivik's Norway Massacre."

Via Diary of Daedalus, "Charles Johnson’s Blatant Lie."

Charles denied he’s obsessed with Pam yet he is organizing a campaign to label Pam Geller’s book hate speech on Amazon. If he didn’t care about her, why does he track her every move? Why doesn’t Charles Johnson do a book? The answer is easy, there are enough children’s coloring books.

Charles, be a man and get over her!

He can't be a man. He's sick. Seriously. He needs psychiatric help.

Pamela responded to this on Wednesday, "LITTLE GREEN ASTROTURDS."

It's weird, demonic even, but progressives have a deranged penchant to attack the livelihood of conservatives. Amy Alkon wrote about the Sadly No! attacks on her, "The Attack On My Book." And of course, Charles Johnson tried to get Patterico fired, "Charles Johnson Impotently Tries to Threaten My Job."

And as readers know, I'm quite familiar with how progressives seek to destroy. See: "W. James Casper is a Coward, a Fraud, and a Liar." That post follows my lengthy attempt to get RACIST = REPSAC to denounce his previous recruitment and sponsorship of workplace harassment and intimidation. Perhaps, if he had a decent soul, he'd try to undo some of the damage he's caused, and that of his progressive blogging cohorts and allies. More on this coming. One of these days I'll get my book manuscript finished, and no doubt we'll be hearing more about this kinda stuff.

RELATED: "Progressivism Incompatible with American Values."

Obama's Taxpayer-Funded Bus Tour

It's all porkulus for this administration.

At LAT, "Pivoting from debt fight, Obama plans jobs-focused bus tour."

But see CNS News, "Taxpayers Will Pay for Obama Bus Tour of Battleground States, Says White House."

Bank of New York Mellon Charging Negative Interest on Deposits

When I went to deposit a check yesterday, the screen on the ATM machine flashed, "Special 1% Interest Rate on CDs of $25,000 or More!"

I thought, my God, banks don't pay interest anymore!

So, yep. You pay them, or at least on big money deposits at Mellon Bank. See New York Post, "BoNY: Big deposits will cost you a pretty penny."

You can keep your stinkin' money.

The financial markets are so foul that Bank of New York Mellon -- overwhelmed by a flood of investors pulling their money out of stocks and stashing it in bank accounts -- is going to start charging its largest institutional customers for holding their cash deposits.

The nation's largest custodial bank announced that it would charge customers more than a tenth of a percentage point for "extraordinarily high" deposits of $50 million or more.

The unusual move by the bank, which manages more than $1.1 trillion in assets for investment funds and money managers looking to safely park their dough, is hoping to discourage customers from plowing even more money into their accounts.

Also at New York Times, "Nervous Investors Chase Low-Risk Assets."

In a sign of just how much cash had poured into commercial bank accounts, Bank of New York Mellon said on Thursday that it would charge institutional clients with more than $50 million on deposit a fee of 13 basis points. The move is intended to recover some of the cost of managing the money, but is also a bid to slow the so-called hot money that has been ricocheting between Treasuries, money-market funds and pure cash balances at the big banks.

The Bank of New York Mellon said the fee would only be applied “to a small number of institutional clients with extraordinarily high deposit levels where the deposits have increased significantly in recent weeks, well above market trends.” The bank did not disclose just how much cash had poured into its coffers recently.

The good news is that investors are pouring their money into U.S. banks. We're lucky that way. When we've seen financial crises in Mexico and Thailand in recent decades, the money flowed out of those countries, leaving them dry and needing bailouts from the U.S. There's a reason we need to worry about our debt overhang. We don't want go the way of Mexico!

U.S. Debts Tops Size of Entire Economy

See IBD, "An Unwelcome Debt Milestone."

With $14.5 trillion in total debt, we're already in deep trouble. Where will we be in 2021, 10 years from now, when total federal debt is expected to reach as high as $28 trillion and GDP is (generously, in our view) expected to reach $23.8 trillion? Then, by conservative estimates, our debt-to-GDP ratio will be close to 120%.

In short, debt will be a permanent millstone around the neck of the once-vibrant U.S. economy.

Fjordman Interviewed at Norway's VG Tabloid

Ander's Breivik's idol, Peder Jensen, talks to the press.

He claims he rejected Breivik's importunings. See, "Breivik's political idol «Fjordman» emerges from anonymity - I am Fjordman."

The interview should be in English, although Google Chrome translates from Norwegian, so try that if there's a problem.

And at Diary of Daedalus, "Rescued from Memory Hole: The Lost LGF “Fjordman” Articles."

America's Outlook is Grim?

Well, so says The Economist, "Time for a double dip?"

America’s recovery from a balance-sheet recession was always bound to be sluggish and fragile. And its woes need not fell the world economy, thanks to the strength of emerging markets (see Economics focus). But the thoughtlessness of the debt deal—notably its failure to tackle any of the real sources of America’s fiscal problems, such as entitlement spending—raises a bigger worry. Can the country’s politicians, so starkly polarised and so willing to gamble with the economy, be trusted not to turn what was always an inevitable period of hardship into longer-term stagnation?

Democrats won't go for entitlement reform. Be sure to read Fred Barnes' essay, "The Debt Deal and the Agony of Nancy Pelosi."

'Pumped Up Kicks'

When you drive around with a teenager you get bombarded with the lastest hipster pop music. And I like Foster the People:

All the other kids with the pumped up kicks you'd better run, better run, outrun my gun.

All the other kids with the pumped up kicks you'd better run, better run, faster than my bullet (link).

Double-Dip Recession May Be Returning

Well, I've been writing about this all day, and I'm not surprised at all.

At New York Times:

Until recently, most observers believed the American economy was in a slow recovery, albeit one with very disappointing job growth. The official figures on gross domestic product showed the United States economy grew to a record size in the final three months of 2010, having erased the loss of 4.1 percent in G.D.P. from top to bottom.

Then last week the government announced its annual revision to the numbers for the last several years. New government surveys indicated Americans had spent less than previously estimated in 2009 and 2010 on a wide range of things, including food, clothing and computers. Tax returns showed Americans even cut back on gambling. The recession now appears to have been deeper — a top-to-bottom fall of 5.1 percent — and the recovery even less impressive. The economy is still smaller than it was in 2007.

In June, more American manufacturers said new orders fell than rose, according to a survey by the Institute for Supply Management. The margin was small, but the survey had shown rising orders for 24 consecutive months. Manufacturers in most European countries, including Germany and Britain, also reported weaker new orders.

PREVIOUSLY: "Commerce Department Downward Revision on GDP Growth, 2007-2010."

RELATED: From Roger Simon, "Dow Down 500: Should Obama Resign?" (via Memeorandum).

Commerce Department Downward Revision on GDP Growth, 2007-2010

David Frum's lost his marbles, IMHO. He's got an essay up at Memeorandum, and Bryan Preston has the response, "No, David Frum, Our ‘Enemies’ Were Not Right." No, Frum's not right, although he's got an interesting link to The Economist, "Flying blind," which discusses the revised GDP numbers on the economy for the third and fourth quarters of 2008:

Output in the third and fourth quarters fell by 3.7% and 8.9%, respectively, not at 0.5% and 3.8% as believed at the time. Employment was also falling much faster than estimated. Some 820,000 jobs were lost in January, rather than the 598,000 then reported. In the three months prior to the passage of stimulus, the economy cut loose 2.2m workers, not 1.8m. In January, total employment was already 1m workers below the level shown in the official data.

Check the link. The gripe is that policymakers had lousy data, and had they known the full collapse of the the economy, they might have done more. The more, of course, would be even more "stimulus." And that's gotta be a joke. The adminstration's 2009 stimulus was nearly $800 billion. And folks think more would help? See Bastiat Institute, "Lots of Waste, Fraud, and Abuse in the Stimulus, Which Will Cost $43 Billion More Than Expected":

Only a small fraction of the stimulus package went to infrastructure spending, and maintenance-of-effort provisions elsewhere in the stimulus package required states to maintain or increase welfare spending, resulting in cash-strapped states cutting back their own spending on useful things like transportation. As a result, Investor’s Business Daily noted, economists “found that despite the influx of all that federal money, highway construction jobs actually plunged by nearly 70,000 between 2008 and 2010.”

The $800 billion stimulus package was purged of most investments in roads and bridges, and filled instead with welfare and social spending, out of political correctness, after feminist leaders complained that building and repairing roads and bridges would put unemployed blue-collar men to work, rather than women. “A recent Associated Press story reports: ‘Stimulus Funds Go to Social Programs Over ‘Shovel-ready’ Projects.’ A team of six AP reporters who have been tracking the funds find that the $300 billion sent to the states is being used mainly for health care, education, unemployment benefits, food stamps, and other social services.” Or, as another AP report put it, “Stimulus Aid Favors Welfare, Not Work, Programs.” Two economics professors recently estimated that the stimulus had actually wiped out 550,000 jobs.

Obama put people on welfare, not to work.

In any case, check that Commerce Department report, "Gross Domestic Product: Second Quarter 2011 (Advance Estimate): Revised Estimates: 2003 through First Quarter 2011." Scroll down for the 2008 revisions and check the tabular data.

RELATED: From Reuters, "U.S. incomes fell sharply in 2009: IRS data." (At Memeorandum.)

EXTRA: At Michelle's, "The Steve Urkel-ization of the economy, redux."

Dow Tumbles 500 Points in Global Rout

We are 15 months from election 2012, and it's not looking good for Obama and the Democrats. Karl Rove has an analysis, "The Debt-Ceiling Debate and 2012." It's largely a technical discussion. Rove notes that the summer debt crisis was of the president's making, since the Democrats failed to pass a budget when they had control of the House, and Obama thought that blame for out-of-control spending could also be apportioned to Republicans. Rove notes as well that tea partiers aren't pleased with the deal and this could create a lot of conflict in the GOP congressional primaries. But from my perspective, the race for the White House is key, and markets are giving us a preview of what to expect over the next year. Democrat Party fortunes will crash harder than the Dow. Recall the Obama won office on economic competence. Voters saw John McCain flailing in October 2008 and Obama looked cool and collected. Now he just looks like a charlatan.

More on this later. Meanwhile, at WSJ, "Dow Tumbles 500 Points, Putting It in Red for Year" (also at the Google link).

NEW YORK – U.S. stocks plunged in the biggest selloff since the financial crisis, driving the Dow Jones Industrial Average down more than 500 points, as investors appeared to lose faith in the ability of the world's policy makers to revive the global economy and stave off a rolling debt crisis in Europe.

The Dow cascaded lower throughout the session. It finished just off the lows with a 512.76-point decline, or 4.31%, to 11383.68, erasing all its gains for 2011. The slump of the past few weeks has driven the Dow down more than 10% from its May intraday highs, putting the index officially in correction territory.

It was the measure's biggest single-day loss since Dec. 1, 2008, when the Dow plunged 679.95 points at the height of the financial crisis, one of the market's worst days ever.

Recovery Summer? Stocks Crash After Debt Deal, Raising Fears Over Economy

I wrote on the economy yesterday, and the hits keep coming.

At Los York Times, "Dow down more than 400 points as market plunge continues."

Also at The Hill, "Dow plunges after debt deal, raising anxiety over economy." (At Memeorandum.)

Americans Give Low Ratings and Dire Predictions for Debt-Ceiling Deal

At USA Today, "Poll: Thumbs down on the debt-ceiling deal" (at Memeorandum):

In a USA TODAY/Gallup Poll taken hours after the Senate passed and President Obama signed the deal, 46% disapprove of the agreement; 39% approve. Only one in five see it as a step forward in addressing the federal debt.

The dyspeptic view may reflect less an assessment of the plan's particulars than dismay at the edge-of-a-cliff negotiations to reach it.

"Most people assume that whatever came out of this horrible process was pretty crappy," says Joseph White, a political scientist at Case Western Reserve University in Cleveland who studies budget policy.

And a surprisingly good discussion at the clip. I'm not familiar with Beverly Gage, but she nails it with her comments on the absurdity of Obamania. And Harvard's David King needs to be fact-checked. He says America hasn't been this polarized since the 1920s, and Judy Woodruff calls him out. He then clarifies with a reference to congressional polarization starting in the 1970s, and that sounds more accurate.

Obama Isn't Working, and He's Only Halfway There

Here's an interesting news mashup. Turns out President Obama spoke to supporters in Chicago on Wednesday night, a DNC fundraiser and 50th birthday celebration. See RCP, "Obama: "We're Not Even Halfway There Yet" (via Legal Insurrection). Added: A Memeorandum thread now.

Meanwhile, Mitt Romney was ready for it, and released this ad ahead of Obama's trip, according to Lynn Sweet, "Mitt Romney taunts Obama over Chicago’s woes ahead of visit":

If Obama's only halfway there, then no one will have a job when he's done.

RELATED: At National Journal, "Polls Show Obama at Risk in Florida." Good thing too!

Republican Voters Hold Out for Their Dream Candidate

I'm not holding out. I'm backing Bachmann. She's consistently opposed the White House on the budget, and her vote may be a huge asset for next week's Ames straw poll.

But see Los Angeles Times, "GOP voters holding out for dream candidate."

RELATED: Robert Stacy McCain's in Iowa, so check over there for first-hand reports.

Big Day at U.S. Open of Surfing!

Well, we're back.

I hung out with my youngest son while my oldest tooled around Huntington Beach with some friends from school.

We parked at 12th Street and Pacific Coast Highway, just North of the Sun'n Sands Motel:

Here's the scene looking toward the pier from the BMX grandstands. Vendor booths are under the tents. The Skullcandy sound booth is at right:

Actually, I didn't have time to watch surfing. I usually do, but I couldn't leave my youngest kid alone. But Los Angeles Times has a surfing report, "Brett Simpson is eliminated at Nike U.S. Open of Surfing."

So we mostly hung out by the skateboard ramps:

The weather was awesome. Good for a couple of Pacíficos:

Hundreds of thousands of fans visit the U.S. Open every summer. It's mostly young people, guys with board shorts and girls in bikinis. One thing I found interesting is how people write on themselves, with erasable ink, I guess. Mostly these are good-natured messages, like "Free Hugs Here," seen on a lot of the young guys. That said, I saw one hot little number in a bikini with a slashed line running from her bikini top to her bottoms, with an arrow pointing to her private area with the message, "INSERT HERE!" Well, I'm all for truth in advertising! And honestly, some people have no problem writing "F- Me" all over their bodies. I asked my oldest son about that and even he was surprised. He then showed me his Skullcandy tatoo, so what can you do:

Heckuva lot better than "F- Me", that's for sure!

The Collective Pathologies of Postmodern America

From Victor Davis Hanson, at National Review, "Snapshot of a Sick Society."

Economic Fears Hit Global Markets

At Wall Street Journal (Google link here):

Worries about the global economy rippled through financial markets on Tuesday, driving down share prices from Tokyo to New York and placing new strains on Spanish and Italian bonds.

Concerns that have been building for days erupted into a selloff that began in Asia, gathered steam in Europe and culminated in a sharp, late-day drop in New York. As the dust settled from the acrimonious debate in Washington over the debt ceiling, investors turned their attention to mounting evidence that the global economy is weakening. Data in recent weeks has shown that the economic "soft-patch" seen around the world in the second quarter is proving deeper and more entrenched than many investors had thought would be the case.

"As people take their focus off the debt ceiling…they're focusing on an economy that looks worse than they had thought," said Erik Weisman, a portfolio manager at MFS Investment Management.

U.S. stocks fell for the eighth straight day, the longest stretch of declines since the 2008 financial crisis. Several measures fell into negative territory for 2011. The Dow Jones Industrial Average dropped below 12000, plunging 265.87 points, or 2.2%, to 11866.62. In its eight-day decline, the blue-chip index is down 6.7%. In Europe, Italian and Spanish bond markets continued their decline, sending yields to euro-era highs. European bank stocks, too, also suffered sharp losses and broader stock indexes tumbled.

Government dependence on borrowing is hammering investor confidence and rattling markets.

'I Love Rich People'

From Katie Kieffer, at Townhall, "Why I Hope the Rich Get Richer":

We hurt ourselves by envying, over-taxing and slandering the rich. Anti-wealth public policies will only persuade independently wealthy Americans to shut down their businesses, stop hiring and retire early to their hammocks in the tropics. On the other hand, if we “love” the rich, we will receive the love back in the form of ample jobs, loans, innovations and investments.

Come to think of it, I'm amazed at how infrequently we hear this argument. A great essay. (Via Linkiest.)

Republicans Seeking Election Remain Unsure About Embracing Tea Party

Well, perhaps I would too if half the political establishment had branded me a terrorist.

At New York Times:

WASHINGTON — The success of Tea Party-backed lawmakers in defining the terms of the debt debate in Washington has further cemented the party’s identity as part of a conservative movement insistent on deep spending cuts, lower taxes and smaller government.

But as Republican candidates gear up for 2012, many are struggling with whether to embrace those passions. Opposing the debt ceiling increase and linking arms with the Tea Party may help candidates tap into a reservoir of energy in their party’s electorate. But it also threatens to alienate the candidates from independent voters who grimaced at the bickering in Washington this summer and preferred greater compromise on issues like tax increases.

“The process didn’t please anyone,” said Whit Ayres, a Republican pollster, “but it was very clear that the new congressmen elected in 2010 dramatically shifted the debate from how much more shall we spend to how much shall we cut.”

In the coming 2012 elections, the strategic calculation for Republican candidates weighing Tea Party ties “depends on the state, depends on the politician and it depends on the particular race,” Mr. Ayres said.

Sounds fair enough. And in states like California, 0bviously, a Republican's more likely to run as a moderate. And even then you can narrow it down to individual constituencies. At the national level, the piece discusses the presidential contenders, and quotes Michele Bachmann, who dissed the budget deal and asserts that President Obama has failed the test of leadership. Hey, sing it baby!

Deficit Battle Shifts to Panel

At WSJ:

WASHINGTON—The Senate approved—and President Barack Obama immediately signed—the long-awaited deal to raise the nation's debt limit Tuesday, as the battle shifted to how a special committee created by the measure will cut the deficit by $1.5 trillion.

The Senate voted 74-26 for the package, which raises the government's borrowing limit by $2.4 trillion and cuts $917 billion in federal spending. A fiery debate is likely over the next step, the bipartisan panel, and how much of its $1.5 trillion in deficit reductions will come from tax increases and how much from cuts in safety-net programs.

Meanwhile, Democrats in particular were eager to move beyond the debt-limit fight and tackle the issue of jobs, which they consider friendlier political turf. Mr. Obama signed the bill in private but used his public comments to try to shift the focus to the economy.

The president could send a stronger signal of defeat than a private bill-signing. Jimmy Carter is smiling somewhere.

'Civility': The Denouement

See James Taranto, at Wall Street Journal.

"Terrorist," "racist," "uncivil," "insane," the list goes on--in this context, these words have no real meaning. They are mere epithets. The Obama presidency has reduced the liberal left to an apoplectic rage. His Ivy League credentials, superior attitude, pseudointellectual mien and facile adherence to lefty ideology make him the perfect personification of the liberal elite. Thus far at least, he has been an utter failure both at winning public support and at managing the affairs of the nation.

Obama's failure is the failure of the liberal elite, and that is why their ressentiment has reached such intensity. Their ideas, such as they are, are being put to a real-world test and found severely wanting. As a result, their authority is collapsing. And if there is one thing they know deep in their bones, it is that they are entitled to that authority. They lash out, desperately and pathetically, because they have nothing to offer but fear and anger.

That's a Bill O'Reilly segment at the clip, and a good one.

RELATED: At Verum Serum, "Another Day, Another Progressive Accuses Elected Members of Congress of Domestic Terrorism."

Gabrielle Giffords's Recovery

I promised to update on Representative Giffords.

Here's this report at WaPo, "Rep. Gabrielle Giffords’s road to recovery includes stop on House floor":

On Monday, the Arizona Democrat flew on a commercial jet from Houston to Washington, where she surprised her colleagues by showing up to vote — her first vote since the Jan. 8 shooting. After a meal with her staff Tuesday, Giffords boarded a plane back to Houston, where she is
still undergoing five days a week of intensive outpatient physical therapy.

The simple one-day journey provided new insights into her progress since the incident that left her with a significant brain injury, friends and specialists said Tuesday.

“In the beginning she could hardly get one word out,” recalled Richard Carmona, a family friend and former surgeon general who is not treating Giffords but has kept tabs on her recovery. Now, “she can speak and put a sentence together. Sometimes, she’s a little slower and a little more thoughtful.”

The mobility on the right side of her body was damaged, much like a stroke patient’s, he said. But she can now walk largely un­assisted. Her improvement has been “really quicker and better than anybody expected,” he said.

Giffords is undergoing three types of rehabilitation, Carmona said: physical therapy to strengthen her right side, occupational therapy to help her with day-to-day tasks such as using a knife and fork, and cognitive therapy including reading and word games. All are “meant to strengthen all the functions that were diminished or lost,” he said.

Giffords still struggles to communicate, a limitation that sometimes leaves her frustrated, friends said. But they said they do not doubt her cognitive abilities and are confident that she understood the debt issue when she voted Monday.

“I guess the most astonishing thing has been how her cognitive abilities seem never to have been affected in the first place. Her ability to know what is going on around her is complete,” said Michael McNulty, her friend and campaign chairman, who has visited with Giffords about every few weeks since she moved from her district in Tucson to Houston, where her husband is based. “She continues to have a lot of speech therapy. And she will continue to until she returns to her eloquent self.”

Still more at that top link.

'The D-Boyz' at X-Games

My boys hanging out on Saturday at Staples Center:

We might be going to Huntington Beach today, so check back from some fresh photo-blogging. The weather is really hot too!

'Hey Jude'

It's ranked #8 at Rolling Stone's all-time best song list, "500 Greatest Songs of All Time."

I'm taking my boys to see the Beatles LOVE Cirque du Soleil in a couple of weeks, so bear with me on the continued Beatles postings, LOL!

NewsBusted: 'A debt ceiling extension deal has been reached'

Via Theo Spark:

U.S. Open of Surfing at Huntington Beach

The surf contest schedule overlapped with the X-Games, so I wasn't event thinking about it. But my oldest boy asked if I'd drive him down to the beach tomorrow, so I checked it out online. Here's this at Los Angeles Times, "U.S. Open of Surfing at Huntington Beach begins Saturday." Cool Twitter feed here as well.

Seriously! White House to Announce 'Counter-Radicalization Strategy'

At Weasel Zippers, "Obama to Unveil New Strategy to Combat Violent Extremism…"

Interestingly, "The strategy pointedly does not focus on threats from Muslim extremism."

Hmm...

I wonder what other groups might be under the radar on this? You know, maybe the White House was kidding earlier today, when it denounced the heated rhetoric of late attacking the tea parties as "terrorists." Desperate times call for desperate measures, I guess. Announce a "counter-radicalization program" days after alleged "tea party terrorists" took the country "hostage" with threats of "default." You can't make this stuff up. Man!