Rep. Paul Ryan (R-WI) against $600 billion cash infusion by Federal Reserve – Rep. Paul Ryan (R-WI) joined his voice to the chorus of opposition to the plan concocted by the Federal Reserve to infuse the economy with $600 billion in cash to lower long-term interest rates and increase consumer spending. The plan, although well received by a number of prominent economists, has been the subject of intense criticism by fiscal conservatives, including Ryan, heads of foreign countries, and politicians from both sides of the aisle. Ryan, who in January will assume the position of chairman of the powerful House Budget Committee, came out on the attack against this proposed plan, citing long-term negative consequences to the economy. Representing Wisconsin’s 1st Congressional District since 1999, Ryan’s constituents have been battered by higher than average unemployment rates. The district has an unemployment rate of 8.2% compared with 7.3% for the state of Wisconsin.
for 2011 and 2012, according to a New York Times report: The president’s proposal will effectively wipe out plans for a 1.4 percent across-the-board raise for 2.1 million civilian federal government employees in 2011 and 2012. The military would not be affected. The president has frozen the salaries of his own top White House staff members since taking office 22 months ago. While a pay freeze will make only a small dent in the federal deficit, it represents a symbolic gesture toward public anger over unemployment, the anemic economic recovery and rising national debt By announcing it on Monday, the president effectively will preempt Republicans who have been talking about making such a move once they take over the House and assume more seats in the Senate in January.
Marshall Auerback: Bankers Gone Wild in Ireland AND Germany – Much ink has been spilled in the press over the Irish problem and the laxity of the country’s southern Mediterranean counterparts in contrast to the highly “disciplined” Germans. But perhaps we have to revisit that caricature. Not only has the Irish crisis blown apart the myth of the virtues of fiscal austerity during rapidly declining economic activity, but it has also illustrated that Germany’s bankers were every bit as culpable as their Irish counterparts in helping to stoke the credit bubble. One of the traditional rationales for the creation of the euro was that a single currency and strict Maastricht criteria would keep the profligate Mediterraneans and their Celtic equivalents in line. Instead, critics, particularly in Germany, increasingly see the European Monetary Union as a means for freeloading nations to offload their liabilities onto fitter neighbors. Not surprisingly, this has engendered much discussion that perhaps it would serve Germany’s interests to leave the euro, rather than booting one of the Mediterranean “scroungers” out. But as Simon Johnson has pointed out, this comforting narrative of German prudence matched up against Irish profligacy doesn’t really stack up
- Ireland gets Euro 67.5 billion ($89.4 billion) in bailout loans
- The 16-nation eurozone, the full 27-nation EU, and the global donors of the International Monetary Fund each commit euro 22.5 billion ($29.8 billion).
- Interest rates on the loans would be 6.05 percent from the eurozone fund, 5.7 percent from the EU fund and 5.7 percent from the IMF.
- Ireland will have 10 years to pay off its IMF loans.
- The first repayment won’t be required until 4 1/2 years after a drawdown.
- Prime Minister Brian Cowen said Ireland will take euro 10 billion immediately to boost the capital reserves of its state-backed banks