California is broke but so is the Federal government.  The only difference is that California acknowledges it because it is required to have a balanced budget.  The Federal Government denies it because it just borrows more money.  Like so many things in this financial crisis, California actually is in much better shape than the Federal Government, because California doesn’t have the massive debt that the Federal Government does.  The Federal Government will continue with $TRILLION deficits for years to come that will only end when the U.S. is worthless.

The U.S. banking system is insolvent.  The Obama administration doesn’t want to admit that; instead, they want to continue pumping more money into insolvent institutions.  Meanwhile, everybody is surprised that banks are giving bonuses, raising credit card interest rates, lowering savings rate, and not lending money as they take more taxpayer money.  If the government is so stupid to let such a system continue, why should it surprise us that the greedy, self-serving banks are continuing the abuse.

America is so doomed and what, possibly, makes things even worse is that it is going to take a long time for everybody to understand just how messed up and doomed America is.  Obama hasn’t gotten it yet.  The Republicans are even more clueless and they think they can oppose everything the Democrats are doing will be a winning plan — Republicans are delusional.

America is doomed.

As the country continues to meltdown, Obama will appear more like a conservative than a liberal in the years to come.  In fact, Republicans should be embracing Obama because he is what the Republican party will look like, probably after the next election.  Hopefully, Obama will recognize that he is moving too slow at addressing the problems in the country and get much more liberal on policy.

Obama needs to get us out of all these wars and fast.  He is moving too slowly and it appears the U.S. will be in both wars for many years to come.  Obama needs to get aggressive with single payer health insurance, living wage laws, and nationalization of many basic industries.  Start with banking.  Go to basic utilities.  Start setting the prices of drugs, doctors and health care and then nationalize the companies when they go belly up.

The stimulus bill is not going to revive the country, it will help in pockets of the economy.  However, the Republicans’ opposition to the stimulus will only hurt them in the future because they have no ideas.  They simply say that the stimulus won’t work.  So, exactly what do the Republicans suggest?   That is why the Republicans will have to transform themselves.  In two years, there will be an even stronger majority of Democrats in Congress and the next round of Democrats will be much more populist and liberal than the current round is.  Unemployment will be much higher.  More wealth will have been destroyed.  There will be plenty of “free enterprise” Republicans looking to vote for more liberal policies because they will have lost jobs and wealth.

The only way America is going to survive is the everybody is in one boat paradigm.  If the country attempts to preserve the rich-poor idea of greed capitalism, the country is going to fail very quickly and populist revolution will be the result.

America is doomed.

It will take weeks to understand the full implications of the recently passed Stimulus Bill; however, Wall Street is already screaming about the limits on executive compensation for companies who received TARP money.   Color me skeptic but it is still hard to believe that Wall Street will not find a way around these compensation provisions that apply to the 20 highest paid people at a company.  For example, if the “top 20″ executives were no longer making the highest salaries (let say $1 per year), they could get bonuses and stock options to compensate them at any level.   All of a sudden the “top 20″ highest paid people would be people who never really got big bonuses anyway.  Problem solved.

When the U.S. is really serious about limiting executive compensation they will make granting stock options illegal in existing companies.  These stock options are a big reason that companies only have a short term view of their companies and their stock.  They get the options, they artificially raise the stock price with some gimmick, cash out the options, and dilute the ownership of the companies for existing shareholders.   There is no incentives for executives to keep the stock because they will get another big pile of stock options the next year and the cycle continues.

Wall Street claims that the most talented people will be leaving these firms.  They won’t leave. Those same “talented” people were the very same ones who led their companies on a path of destruction and government bailout money.   Let’s see how many unTARPed companies will want to hire those “stars”.

Plus, once the companies pay back their TARP money, they are off the hook.   It is doubtful that more than a few will ever pay off the money.  It is far more likely that these firms will be nationalized and if this executive compensation provision hurries this nationalization then it has done a great thing.  But, like so many regulations from Congress, these compensation limits will probably do nothing other than to change the way the game is played.  In the end, America always loses.

America is doomed.

Two hundred years ago, Abraham Lincoln and Charles Darwin were born — yes, on the same day.  America will celebrate Lincoln’s birthday and the U.K will celebrate Charles Darwin.  Both of these great human beings provided the rational and clear thinking that allowed the U.S. to elect a black President.

Charles Darwin’s theories which have evolved over the years are the basis of all serious biology today.  These theories declare that all men are literally created equal because they all evolved from the same ancestors.  His theories render racism nonsense and irrational.

Likewise, Abraham Lincoln who once was a racist became enlightened and signed the Emancipation Proclamation and declare that all men are created equal.

These mens typify scientific intellect and human compassion.

The House-Senate Compromise to the Stimulus Bill is out and it sends a clear message.  The U.S. Congress doesn’t care about the poor or the unemployed.  It doesn’t care that people will lose their health insurance.  It cares about the rich, again.

The House-Senate compromise, however, cuts funds for extended health care coverage for the unemployed; cuts $30 billion in aid to state governments to prevent reductions in social services to the poor and out-of-work; and also cuts a special “Making Work Pay” tax holiday from $500 to $400 for an individual, and from $1,000 to $800 for a couple, for low-to-middle-income workers still hanging on to their jobs

Bring on the Tent Cities.  Bring on the starving people.  Continue the policies where the poor and the unemployed are dismissed as the rich and near rich are rewarded.  Revolutions start at the bottom and it is just a matter of time before the ever-increasing number of poor revolt.

America is doomed.