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December 2, 2014

Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review June 30, 2010 / 18 Tamuz 5770

G-20 fairy tales

By Robert Robb


http://www.JewishWorldReview.com | Based upon the statement coming out of the G-20 meeting, global political leaders apparently live in a never-never land where excesses do not have consequences.

They not only believe that their own excesses don't have consequences, but that they can wish away the consequences of excesses in the private sector.

The current global economic malaise began with excesses in the private sector. Lenders imprudently lent and borrowers imprudently borrowed, particularly in housing. Financial institutions imprudently invested in securitized subprime mortgages.

Rather than allow these lenders, borrowers and investors to suffer the full consequences of their imprudence, governments borrowed heavily to bail them out and provide general fiscal stimulus to ameliorate knock-on effects on the rest of the economy.

The U.S. central bank had already been pursing a lax monetary policy that facilitated the imprudent lending and borrowing. It opened the monetary spigots even wider, including becoming a buyer of securitized debt that had difficulty finding other takers.

The European central bank, which had been pursing a more prudent monetary policy, also opened the spigots and, in a more modest fashion, became a buyer of last resort as well.

Now the markets believe that governments have borrowed too much and are putting pressure on sovereign debt, particularly in Europe.

Not to worry, the G-20 statement says, we've got this under control.

We will continue our fiscal stimulus because our economies are still in the dumps. But we will also cut our deficits, as a percentage of GDP, in half by 2013. We will do so, however, in a way that is "growth-friendly."

And while we do that, the countries in the G-20 that have trade deficits will consume less and save more, while those with trade surpluses will buy more and save less.

This fairy tale was concocted to paper over a fundamental disagreement between the Obama administration, which wants to keep the pedal down on fiscal stimulus, and Europe, particularly Germany, which believes that the party's over.

Germany, the object of much frustration when government leaders were trying to suspend the consequences of excess, increasingly looks like the grownup in the world's economy. It went for fiscal stimulus considerably less and has, among developed nations, a relatively low current deficit and accumulated debt load. It also has an unemployment rate of 7.7 percent, compared to 9.7 percent in the U.S. and a Euro area average of over 10 percent.

In the U.S., it is almost universally believed that we have been living beyond our means. We consume and borrow more than we can afford. We save and invest too little.

There's only one way to fix that. We have to consume and borrow less and live more modestly. We have to save and invest more.

Yet government policy continues to promote consumption including, almost unfathomably, in housing. Big tax breaks for buying a house, easy money to keep mortgage rates low, government-guaranteed mortgages with low down-payments, a bankrupt Fannie Mae and Freddie Mac given an unlimited federal checkbook to maintain liquidity.

And the Obama administration wants to disincentivize saving and investing by increasing taxes on capital gains and dividend income.

Recessions are painful. But after they have run their natural course, there is a more fundamentally sound economy to build from.

The United States has endured the pain of recession with high unemployment rates. But because the federal government, under Bush and Obama, has sought to wish away the consequences of excess, we do not now have a more fundamentally sound economy on which to build.

Behavioral changes -- such as consuming less and saving more -- occur during bad times. Perhaps they can make bad times slightly more bad, but then you get the good. When times are good, no one sees the need for change.

The motto of the Obama administration is supposedly not to let a crisis go to waste. They've wasted this one.

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.

JWR contributor Robert Robb is a columnist for The Arizona Republic. Comment by clicking here.

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