THE SUN CAME UP

I was so terrified yesterday on the eve of the Sequester that I couldn't write so imagine how good I felt when I woke up this morning and there was the sun...well, in the fly-over zone in early March you don't really get the sun but the absence of darkness tells you that the sun is...anyway I felt great.
ode didn't change much even listening to The Leader's presser around noon.  Beachball questions that he of course knocked out of the park, a sampling of the usual crap, except but one little nugget picket up by no one in attendance.  Whilst speaking once again of the "grand bargain" The Leader mentioned that this could be accomplished "without raising taxes."  Did he really mean that or is that just another slip that will get reeled in within 48 hours?  Because if he did, let's get Simpson & Bowles wound up and out on the road because this would be a real break-through.  One way or the other, day one of the sequester was a dud with, as far as I can see, no one caring and everyone having figured out that it is a political ploy that will be made to look as bad as possible by "selected" cuts and slowdowns to create as many headlines and hardship as possible.

Some folks have already begun.  Janet Napolitano's gang at homeland security began releasing illegals a couple of days ago apparently without the knowledge or authorization from Ms. Napolitano or anyone else.  Now if The Leader was really interested in reducing spending and the deficit he could start by firing Ms. Napolitano which of course is exactly what would happen in the private sector.  Don't look for that to happen because it is not the private sector and no mid-level employee in government would ever release illegals on their own.  In short, Ms. Napolitano and the White House are lying through their teeth, but so what in the long run; it doesn't make a difference just like the sequester which, in an adult world, makes no difference either.

By goofing off yesterday, I did miss commenting on one of the great pieces of stupidity handed down by the European Parliament Wednesday night, and given past idiocies, that's saying a mouth full.  Having buggered most of which they have been charged to accomplish over the past few years, the boys and girls decided to take on something safe and popular, like bashing banks and bankers.  Somehow, they found the authority to, across the entire EU, set bonuses paid to bankers at  no more than 2x base salary.  Bye, bye, Frankfurt, hello Singapore, New York and Toronto not to mention the destruction of half a dozen theories which have been implemented since the crisis such as the idea that bonuses are to be paid over time as a reward for performance just to state one example.  If left standing, what will occur immediately is a massive rise in salaries which, once paid, are gone from any "claw back" and are hardly subject to good behavior.  Of course this is surely understood so the real reason for this stupidity is the desire to immediately hike tax receipts whilst not understanding that if the payee is working outside the jurisdiction the source of taxation disappears.

The other stunning thing about this is whilst Euro politicians have been warning the UK not to consider opting out, this mob in the Parliament have taken the one step that will guarantee that the UK leaves the EU.  The City is the lifeblood of the nation.  It is a fight the EU cannot win.  Euroland is like a low budget horror movie: one simply stares and laughs.  Sequestration? Pshaw!  We think we're stupid.  We ain't got nothin' on these guys.  What a hoot!

THE SLOWING OF THE TIDES

In case you missed the goings-on at the G-20 summit in Russia this past weekend--and I am sure many of you did--we here present as a public service exactly what occurred...nothing.  Well , that's not exactly correct because there was a joint communique (which is a tip-off that nothing important because if there were it would not be in anything "joint") concerning engaging in currency wars.  Not on, said the G-20 in unanimous formulation.  Of course it would be OK for nations to adjust the value of their currencies for a variety of different reason that would not constitute a currency war because that is a very bad thing but the adjustment of currencies to gain a competitive advantage is OK.  Now some of you may ask, "DUH?" but please understand that these are subtle and difficult issues not easily understood by folks like us but crystal clear to central bankers.  We must trust them and realize that they know what they are doing.  And thus ends our public service announcement for the day.

Over Here, The Leader, fresh from his three day golf trip with members of the 1% lectured everyone on the horrors of the sequester which is coming up next week.  This subject will dominate the news up until the moment of truth as The Leader will attempt to impress upon what a horrible idea the sequester is, blame it on the Republicans while at the same time trying to make everyone forget that it was his idea in the first place.  The fact is that if we had a budget which we don't because the Senate, controlled by The Leader's party refuses to pass one, it would be around $4 trillion with a deficit of $1 trillion of which a $60 billion sequester wouldn't amount to what my Massachusetts Yankee uncle used to refer to as "a pee-hole in the snow." Hell, 3 accountants named Schwartz with the aid of a slide rule could lose $60 billion from that mess in an hour.  But no, we are forced to listen to tales of teachers not teaching, cops not copping, borders becoming unprotected and worse.  And for over a week.   It's unfair. With  Euroland looking at the election of a new Pope and, oh, yeah, the Italian elections, the G-20 again entering into ANOTHER year without a new idea in their heads and this nonsense dominating out news, I'm dead.  Maybe I'll start a screen play, something about an old house in England or...what...it's been done?  See what I mean?  Dead.