Financial Crisis Warning: Former FDIC Chair Reveals Debt Now ‘Unsustainable’ | Sheila Bair

The debt is a huge problem and we need bi-partisan solutions to fix it.

Solutions that the incoming administration have proposed like cutting 70% of the federal workforce: demonize the bureaucracy, will make government function poorly, and are bad ideas.

https://www.youtube.com/watch?v=d7ZH6hN6Axc

EU all but guaranteed to miss global deadline for climate targets

“global warming is now taking a backseat to economic woes and the war in Ukraine. Governments seem not to be in a hurry to start a discussion on new climate targets. While a handful of EU countries, Denmark among them, have endorsed a 90 percent target for 2040, others, including Poland, aren’t yet ready to do so.”

https://www.politico.eu/article/eu-all-but-guaranteed-to-miss-global-deadline-for-climate-targets/

Germany’s snap election: What happens now?

“Germany’s three-party ruling coalition — consisting of the Social Democratic Party (SPD) and the Greens on the left side of the political spectrum, and the fiscally conservative Free Democratic Party (FDP) on the center right — was never a match made in heaven. Both the SPD and the Greens favor a strong social safety net and big investment to speed economic growth and the green energy transition. The FDP, on the other hand, believes in less government and less spending.
You may ask yourself why this triad came together in the first place. Good question! Simply put, there weren’t a lot of options given Germany’s increasingly splintered political landscape, as the rise of upstart parties has made it more difficult for the big-tent parties — the SPD and the conservative Christian Democratic Union (CDU) — to form two-party coalition governments.

The fragmentation has worsened with the rise of the far-right Alternative for Germany (AfD) party, now polling in second place nationally, and will continue with the arrival of populist-left newcomer Alliance Sarah Wagenknecht (BSW). Post-war Germany hasn’t had much experience of larger coalitions (Scholz’s fallen triad was the first three-way alliance in over six decades), but the ongoing division may make such coalitions — which tend to be more volatile — the new norm.

The key moment in the early demise of Scholz’s coalition came a year ago, when Germany’s top court handed down a bombshell ruling that ended a workaround the government had been using to spend money without violating the country’s constitutional “debt brake.” In order to circumvent those self-imposed fiscal strictures, Scholz’s coalition had relied on a network of “special funds” outside the main budget. The court deemed the practice unlawful, blowing a €60 billion hole in the federal budget in the process.

After that, Scholz’s coalition, which had relied on the free flow of money to paper over its major ideological differences, was not long for this world. A string of embarrassing election defeats and record-low approval ratings prompted the coalition parties to play to their bases to revive their political fortunes, worsening their incessant squabbling.”

“Germany will hold its federal snap election on Sunday Feb. 23, 2025, lawmakers and officials in three of the major parties told POLITICO”

https://www.politico.eu/article/olaf-scholz-germany-snap-election-what-happens-now/

Trump Got Away With It — Because of the Biden Administration’s Massive Missteps

“It is now clearer than ever that Garland was a highly questionable choice to serve as attorney general from the start. From the outset of the Biden presidency, it was readily apparent that Garland had little desire to investigate and potentially prosecute Trump.
The most comprehensive accounts on the matter, from investigative reporting at The Washington Post and The New York Times, strongly indicate that the Jan. 6 committee’s investigation and public hearings in 2022 effectively forced Garland to investigate Trump and eventually to appoint Smith in November of that year — nearly two years after Trump incited the riot at the Capitol.

There are many people — including many Democratic legal pundits — who have continued to defend this delay and may continue to do so, so let me be very clear: Those people are wrong.

It was clear after Trump’s loss in 2020 — even before Jan. 6 — that his conduct warranted serious legal scrutiny by the Justice Department, particularly in the area of potential financial crimes. But that probe, which could and should have been pursued by Biden’s U.S. Attorney and aspiring attorney general in Manhattan, somehow never materialized.

It was also clear — on Jan. 6 itself — that Trump may have committed criminal misconduct after his loss in 2020 that required immediate and serious attention from the Justice Department.

The formation of the Jan. 6 committee in early 2021 did nothing to change the calculus. There too, it was clear from the start that there would still need to be a criminal investigation to deliver any meaningful legal accountability for Trump.

In fact, the warning signs for where this could all end up — where the country finds itself now — were clear by late 2021, less than a year into Biden’s term. The public reporting at the time indicated (correctly, we now know) that there was no real Justice Department investigation into Trump and his inner circle at that point, even though the outlines of a criminal case against Trump — including some of the charges themselves that were eventually brought nearly two years later — were already apparent.

As a result, the Biden administration and the Garland Justice Department were running an extremely obvious risk — namely, that Trump would run for reelection and win, and that any meaningful criminal accountability for his misconduct after 2020 would literally become impossible. That, of course, has now happened. It was all eminently predictable.

Garland’s defenders over the years — including many Democratic lawyers who regularly appear on cable news — claimed that Garland and the department were simply following a standard, “bottom-up” investigative effort. Prosecutors would start with the rioters, on this theory, and then eventually get to Trump.

This never made any sense.

It did not reflect some unwritten playbook for criminal investigations. In fact, in criminal cases involving large and potentially overlapping groups of participants — as well as serious time sensitivity — good prosecutors try to get to the top as quickly as possible.

The Justice Department can — and should — have quickly pursued the rioters and Trump in parallel. The fact that many legal pundits actually defended this gross dereliction of duty — and actually argued that this was the appropriate course — continues to amaze me.”

“None of this, however, excuses the Republican political and legal class for their role in all this as well. In fact, Trump could not have pulled it off without a great deal of help from them too.

Start with Mitch McConnell and Senate Republicans in 2021. They could — and should — have voted to convict Trump after his second impeachment, which would have prevented him from running again for the presidency. Instead, McConnell and almost every other GOP senator let him off the hook.

Trump then proceeded to execute perhaps the most remarkable political rehabilitation in American history, but which should not have been nearly such a surprise. He never seemed to lose his grip on the party and in fact strengthened it over the course of 2021, as the likes of Kevin McCarthy and others quickly rallied around him.

The Republican presidential primaries also proved, in the end, to be a boon for Trump in his legal fight. By the time they concluded, Trump had been indicted by the Justice Department and local prosecutors in Manhattan and Fulton County. Under the traditional rules of politics, this should have provided incredible fodder for his adversaries and essentially killed his campaign.

Instead, his most prominent primary opponents — his opponents — came to his defense. As the prosecution in Manhattan came into focus, for instance, Florida Gov. Ron DeSantis belittled the effort as “some manufactured circus by some Soros-DA.” Nikki Haley and Vivek Ramaswamy both said that they would pardon Trump if elected.

It was no surprise, then, that Republican primary voters rallied around Trump. Perhaps it was inevitable, but it was certainly made easier by the fact that Trump’s supposed adversaries were all endorsing his legal defense as well as his false claims about the prosecutions themselves.

Last but most certainly not least: The Republican appointees on the Supreme Court bailed Trump out this year — in the heart of the general election campaign and when it mattered most.”

“The six Republican appointees — three of whom, of course, were appointed by Trump himself — sided with Trump on both counts.

They first slow-walked Trump’s appeal on immunity grounds this year and then created a new doctrine of criminal immunity for Trump that had no real basis in the law — effectively foreclosing the possibility of a trial before Election Day. It was a gross distortion of the law in apparent service of the Republican appointees’ partisan political objectives.”

https://www.politico.com/news/magazine/2024/11/07/trump-legal-failures-blame-column-00187945

What should the 2023 Washington Consensus be?

The United States is doing way better than seemed likely since the end of the Cold War as far as its economic power compared to the rest of the world. Improving efficiency rather than protecting jobs is the best way to maintain prosperity. The federal debt is a major concern.

https://www.youtube.com/watch?v=7udKsziNqRQ

An Overlooked — and Increasingly Important — Clue to How People Vote

“While 3 percent of seniors get their information from social media, 46 percent of 18- to 29-year-olds do.”

https://www.politico.com/news/magazine/2024/11/09/social-media-traditional-news-elections-00188548