Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Monday, December 20, 2010

Even See B.S. Gets It

And nothing predicts a reality freight train better than see B.S. getting it. Because that means it's far, far too late to get off the tracks.

60 Minutes: Fiscal day of reckoning is here | The Right Scoop: "I know this problem is bigger than Obama, but geez, how can the MSM do fabulous reports like this and not see that the whole trillion dollar stimulus was just a load of crap. It did nothing more than grow our debt, and all the money that was given to state and local governments has now run out. Just like GM, after taking tax payer money several times and finally having to go bankrupt to fix their core problems, state and local governments will have to do the same. It’s ridiculous that they just continue to let Obama and crew lie about this when the facts are staring them right in the face!"


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Wednesday, December 8, 2010

The CPUSA Is Dead, Long Live The CPUSA!


Moonbattery: They're Socialists, All Right: "A favorite theme in horror/sci-fi movies is the demon or alien that can take over people's bodies. Once the villain has moved to a new host, the body it inhabited previously can be discarded. This is why the old Stalinist vehicle known as the Communist Party USA won't be needed for much longer. The fiend inhabiting it will soon finish its transition to a new host — the Democrat Party:

In [a Rasmussen] survey of 1,000 adults, nearly half of all Democrats, 42 percent, indicated that they believe the government should 'manage the economy completely.'

As for Americans overall,

In total, according to the poll, just 27 percent of Americans believe government should manage the economy."
See you at the Tom Wood's talk tomorrow for the antidote. 7pm 12/9 at the CSU (Fort Collins) Lory Student Center East Ballroom...

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Saturday, December 4, 2010

Joblessness Made Simple

If you can't figure it out after watching this you never will. Skip ahead a bit until Stockman comes on of course.













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Thursday, December 2, 2010

Let Them Eat Pie


The Simple, Two-Color Pie-Chart That Perfectly Illustrates the Fiscal Suicide of the United States of America: "Democrats can blame Bush, Greenspan, Reagan, Millard Fillmore and James Madison. But this year's deficit is on their heads alone.

Karl Denninger is using this chart to speak some truth to power: in a nutshell, the Democrats' era of vast unfunded, unconstitutional social engineering experiments -- Social Security, Medicare, Medicaid, the Department of Education, the Department of Labor and hundreds of other bureaucracies -- is drawing to a close, like it or not.

The Pelosi-Obama-Reid Democrats just hastened their demise."

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Sunday, November 28, 2010

Is Obama A (Cargo Cult) Keynesian?

American Thinker: Cargo-Cult Keynesians: "When the war ended, so did the stream of American goods. But the islanders had a plan. Constructing fake airplanes on the abandoned landing strips, they entered the rickety control towers and spoke into objects similar in form to microphones in order to persuade the Gooney Birds to return with their largesse. It was a concrete example of the ancient magical formula that like begets like, and it worked the same as it ever does. For all I know, they're still waiting.

Fast-forward several steps in civilization to John Maynard Keynes. There exists a misunderstanding about Keynes and his economic theories. These comprise no formula for gross evil or the undermining of democracy. In fact, they are serious attempts to create something on the order of a unified field theory for the economic universe. As such, they are marked by serious flaws, the most critical originating in a profound misunderstanding of human nature. As an upper-class Englishman, Keynes had little grasp of the concept that human beings will use any excuse to act badly, even if it's an abstruse economic theory."
Which reminds me of this absolutely hilarious little ditty:

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Friday, November 26, 2010

Who The Hell?

Power Line - "Just who the hell do you think you are?": "We had the Greek tragedy earlier on this year, and now we have the situation in Ireland. I know that the stupidity and greed of Irish politicians has a lot to do with this: they should never, ever have joined the euro. They suffered with low interest rates, a false boom and a massive bust. But look at your response to them: what they are being told as their government is collapsing is that it would be inappropriate for them to have a general election. In fact [EU Economic and Monetary Affairs] Commissioner [Olli] Rehn here said they had to agree to a budget first before they are allowed to have a general election.

Just who the hell do you think you people are? You are very, very dangerous people indeed: your obsession with creating this European state means that you are happy to destroy democracy, you appear to be happy with millions and millions of people to be unemployed and to be poor."
WTWT:

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Sunday, November 14, 2010

The Ben Bernank

Drop Everything And Watch This! ROFL!

Just wow...

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Thursday, November 4, 2010

Hayek vs. Keynes: The Sequel

I don't know how to recommend this highly enough. I implore you to spend the 10 minutes.

Then go here and expand your horizons to a 2 page summary of "The Road To Serfdom" written by Hayek himself. Surely you can survive that?

And did you know that a Reader's Digest version of it exists as well. Can that be too much to ask of you?

But Reader's Digest is gone isn't it?

And only "txt u l8tr" remains.

Sorry. Has my contempt for Gramsci become noticeable at last?

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Monday, October 18, 2010

Off Track


Opinion: Just How Lousy Is the Economic Recovery?: "But the evidence from past recoveries shows that things could be -- and arguably should be -- much better than they are now. Which strongly suggests that, however bad the recession was, something the federal government is doing today is putting a drag on the normal recovery trajectory.

Only by admitting there's a problem will we ever have a chance of getting the current recovery back on track."

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Sunday, October 10, 2010

How To Wake Up (Bumped)

Most of you will remain asleep financially until it's too late. For those of you who are finally getting the bad feeling in the pit of your stomach that you should have sensed many years ago, here is one last chance for you even if you consider yourself a financial dunce. If you listen to it a few times and start to get it then head over here and start to listen to the podcast archives starting with the most recent (the first interview segments here and here are particularly good next steps) until you really get it. Now you can't blame me for not doing my duty.



UPDATE: Jim Puplava also has an excellent context piece including a quote from Jens O. Parson's book, "Dying Of Money": "Ever since ancient Babylon enjoyed its first inflation and its first balance of payment deficit, governments had been discovering and rediscovering the wonders of monetary inflation, and every time they did the wonders were all new and breathtaking. Monetary inflation always works like a magic elixir at the first dose. Continuing the doses, or stopping them, is the problem. (p 85)". RTWT.

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Friday, October 8, 2010

Trillionaire's Children

Forget the "zero sum" cr*p:

Minerals on the Ocean floor could provide resources for over 60 centuries: "With the necessary precautions, extracting the underwater deposits may also be a more environmentally friendly process than mining on land, Cathles said.

And it could provide other benefits, both scientific and psychological. Undersea exploration around ocean ridges could open doors to new research on the fundamental processes behind the formation of Earth's crust, he noted; and a more positive outlook on the future could lead to fewer wars and more positive engagement.

'We are not resource limited on planet Earth. For a human on Earth to complain about resources is like a trillionaire's child complaining about his allowance or inheritance. It just doesn't have much credibility in my view,' he said."

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Wednesday, September 22, 2010

This Is It


You might have seen the chart of actual unemployment vs what Obama predicted with the "stimulus" boondoggle. It turns out you ain't seen nuttin':

Ace of Spades HQ: "You can see that from the late 60's up until 2000 federal spending was pretty much a straight line relative to the median household income. Then jumps to a new higher growth rate around 2002 (most likely due to 9/11). But look at what happened in 2007 when the Democrats took over the House.

Ho-ly crap!

Not only did federal spending shoot up but median income actually fell. This isn't just new unsustainable growth - this is an effin death spiral where spending has become completely decoupled from people's incomes. This is the kind of graph you see in engineering when a system is heading into failure. A few more years of this and we will be in Greek bankruptcy territory.

So if you're looking for a single chart that crystallizes the current greatest danger to the US and why the Tea Party has appeared, this is it."

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Monday, September 20, 2010

Teh Gangsta

Power Line - The Down-Side of Gangster Government: "Bulls of the US economy frequently point to the flush state of the US corporate balance sheet to support the idea that an investment boom will soon be riding to the rescue of growth and job creation, but as things stand there is little reason for wanting to invest in the US, which seems as politically inept as it is economically marooned.
I'm not sure we're economically marooned, but we certainly are politically inept. The rule of law is probably the single most important factor in generating long-term economic growth. The consequences of the Obama administration's abandonment of the rule of law in favor of gangster government may not be felt immediately, but they nonetheless are likely to be immense."

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Sunday, September 19, 2010

Cancelled

This is one of the most concise summaries of the current "economic" disaster you will ever read -- so take the two minutes:

Bill Buckler Discusses The Last Price Standing Of "True Money", Answers The Only Question Relevant To Gold Bugs | zero hedge: "'Before it can be exchanged, wealth must be created. Wealth cannot be created out of thin air. By definition, an economic good is “scarce”. If it were not, there would be no such thing as economics or exchange. Neither would be necessary because no effort or choice in the face of alternatives would be required in order to provide the GOODS which further our lives. Before we can talk about money and the VITAL role it performs, we must stress this point. Money is NOT wealth, it is the means by which wealth is exchanged amongst those who produce it. Paper money is not suited to this function.' So what is the only rational investment in times in which money's role is so often confused by pretty much everyone? 'Ninety-seven percent of all existing Treasury debt has been created since August 15, 1971! Ninety-three percent of it has been created since Mr Volcker “saved” the paper Dollar in late 1979! Please note that the gain in Treasuries and the loss in the US Dollar almost exactly cancel out. Please note also that even the biggest gain in these paper markets fades into insignificance against Gold’s rise."And here is the answer all the "gold bugs" have been waiting for: "The paper money “price” of Gold will last as long as the attempt to make paper money “work” lasts. In the end, Gold will no longer have a “price” because it has reverted to its role as MONEY. Whenever and wherever that happens, that nation can return to the production of wealth - rather than “money”."
Then click through and RTWT which is still pretty concise. And very enlightening...

UPDATE: This is quite extraordinary also. A perfect companion piece.

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Saturday, September 18, 2010

The Big Bang


Debunking The Great Myth Of US Consumer Deleveraging, Or Why The US Economy Will End Not With A Whimper But A Bang | zero hedge: "Putting numbers to the data confirms that of the over $600 billion in deleveraging, only $20 billion or so of it was voluntary, with the balance occurring due to continuously irresponsible borrowing practices, in which US consumers spend, spend, spend themselves into oblivion only to be cut off cold turkey, instead of entering a slow deleveraging rehabilitation which would allow them to shift into the transition to a new creditless normal far easier.

The last observation is key as it has rather startling implications to David Rosenberg's theme of the New Frugal Normal. It would appear consumers do not, in fact, moderate their spending while still in possession of credit (regardless of its cost) - quite the contrary: they accelerate spending until the charge off threshold at the lender is breached, and all credit is cut off, also resulting in a collapse in a creditor's FICO score, cutting him or her off completely from future (at least near term) credit access. Thus what is occurring at the end of a typical consumer credit lifespan, is not a whimper but a massive bang."


UPDATE: And more on Washington's Blog. This is a RTWT.

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Tuesday, September 14, 2010

The Burning

Hard to improve on this one.

Power Line - Book Burning: "President Obama says burning a Koran would be antithetical to American ideals. Michael Ramirez comments; click to enlarge:"

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Sunday, September 12, 2010

Just One Story From 9-11 (Bumped)

Just One Story From 9-11...
that We Must Never Forget!
By Rudy Zitti

She probably awoke early that morning preparing for work just as she had done hundreds of times before. The commute from South Farmingdale amid the hustle and bustle of a typical work day in New York City was also uneventful. Upon arrival at the World Trade Center Captain Kathy Mazza went about her duties as the Commanding Officer of the Port Authority of New York and New Jersey Police Academy. She was unaware of the incredible events, challenges and fate that awaited her.

At 8:46 AM the first hijacked plane struck the North Tower which began to burn. Seventeen minutes later at 9:03 a second hijacked plane struck the South Tower where Mazza was working. Captain Mazza would spend the next fifty six minutes of her life rescuing people who were trapped in the building. Mazza led a group of people down a stairwell to street level. While people were trying to exit through the revolving doors they became jammed. Mazza used her 9mm sidearm and shot out the huge glass panel walls leading to the street enabling hundreds to escape. She went back into the stairwell to assist in the rescue of a wheel-chair bound person when the South tower collapsed. She was found only inches from a door that led to safety.

That same morning my family and I were in New York visiting relatives and friends. It was our last day and we were saying our goodbyes and making preparations for our departure from Laguardia Airport later that afternoon.

A concerned friend called and told us to turn on the television. My wife and I watched in confusion and disbelieve at the images that were being televised and while we were trying to make some sense out of all that was unfolding before our eyes we saw the second hijacked plane crash into the South Tower.

I remember the horrible sickening and helpless feeling that came over me as we watched the towers burning and stared in horror as people could be seen clearly leaping to their death from the North Tower. Then I was paralyzed engulfed in an eerie silence and crushing sadness as we saw the towers collapsed.

We were still numb from the events that we witnessed on television when we decided to drive to another relatives house who was supposed to take us to the airport. We drove along the Ocean Parkway which runs along the south shore of Long Island. As I stated before it was a crystal clear day and as we got closer to New York City you could see the smoke from the burning towers for miles. At one point we stopped with other people on the side of the road. We exited the car and watched in silence as the plume of never ending smoke rose toward the sky. No one said a word but you could tell that they were all thinking the same thing. How many lives were lost? What about all the families who's lives will be forever changed.

In the hours that passed we got phone calls from friends and relatives who told us that they had heard from loved ones and that they were safe. It wasn't until a couple of weeks later that I had learned that Kathy Mazza had perished in the tower collapse.

I knew Kathy Mazza through my long time friend and partner, Nassau County Police Detective Dominic Mazza. While I did not know her well, I did see the effect that the circumstances of her death had on family and relatives. The same was true for my wife who's childhood friend and New York City Firefighter Peter Bielfeld also perished that day.

While there are many stories to be told of events that day and in the weeks afterward the one thing that strikes me still, is how people came together in this time of need. Not just people who lived in New York or people like myself who had some direct or indirect connection to the victims, but people from all over America. People who tried their best to find ways to help by donating blood, sending money, creating memorials, volunteering in any way they could or by simply flying the American flag.

It was a time when, quoting Glenn Beck, “We came together as a nation not caring about red states, blue states or political parties, uniting and standing together to protect the greatest nation ever created.”
We were determined that this horrific act of terrorism would not diminish the American spirit. We would rebuild. We would fight back. We would not let this happen again.

There are three reasons why I am telling this story.

First, we must never forget, the heroes, the innocent, and their grieving families. I keep a link to a very powerful and graphic power point of 9-11 posted on my desktop as a reminder.

Second, although it has taken far too long—nine years—to rebuild something at ground zero, I am proud and uplifted by the start of construction. As I see the memorial features being built and the structures rising from the ashes it has elevated my spirit. Once again the indomitable American spirit can prevail. Even during these times of economic hardship and the divisive political atmosphere that exists in our nation and Colorado, we must fight for what we believe in and never give up. We will likewise prevail.

Third, if we are successful in turning the tide in the next two election cycles we must use it to not only turn our country around but to bring people together as a nation with the same purpose and principles that our founders used in building this great country.

After 9-11 we faced many challenges, today we face more challenges and while the quote below was written for a different reason and time in history we would be better off to change course and follow these words of wisdom from Congressman Charles A Lindberg after WWI:

“The one compelling duty of America is to put its own house in shape, and to stand upon an economic system that will make its natural resources available to the intelligence, industry and use of the people. When we do that the way to world redemption from the folly of present chaos will stand out in our country so clearly, honestly and usefully that we shall be copied wherever peoples do their own thinking.” (Charles A Lindberg, Sr., The Economic Pinch 1923)

If you are part of the grassroots movement then let's never forget those who died on 9-11, let's also never forget those who sacrificed everything in building this great nation, let's get to work like those at Ground Zero and start rebuilding, let's create something better, let's be proud of our founding, let's put our passion to work and return America to a leadership roll and greatness in the world.

Some related facts we should never forget.

A memorial for Captain Kathy Mazza has been built constructed in Farmingdale, LI, NY. The family and donors paid for the memorial that bears Mazza's name, along with the names of the 36 other Port Authority officers who died Sept. 11. The memorial also includes the numbers 23 and 343, representing, respectively, the the number of New York City police and firefighters who died that day.

A third hijacked plane crashed (United Flight 93) into a field in rural Pennsylvania killing all 45 people on aboard when the passengers attempted to re-take control of the plane.

A fourth hijacked plane (American Airlines Flight 77) crashed in the Pentagon killing almost 200 military and civilian personnel and all 64 people on board.

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Saturday, September 4, 2010

A Fitting Metaphor: Shakedown Stripped

Payne: The irony of Jesse Jackson's stripped SUV | themichiganview.com | The Michigan View: "Following the embarrassing news that Mayor Dave Bing’s GMC Yukon was hijacked by criminals this week, Detroit’s Channel 7 reports that the Reverend’s Caddy Escalade SUV was stolen and stripped of its wheels while he was in town last weekend with the UAW’s militant President Bob King leading the “Jobs, Justice, and Peace” march promoting government-funded green jobs.
Read that again: Jackson’s Caddy SUV was stripped while he was in town promoting green jobs.

Add Jesse to the Al Gore-Tom Friedman-Barack Obama School of Environmental Hypocrisy. While preaching to Americans that they need to cram their families into hybrid Priuses to go shopping for compact fluorescent light bulbs to save the planet, they themselves continue to live large."
And then the writer drops the hammer:
Real jobs produced big, profitable SUVs like the one Jesse prefers to ride in. His SUV has been stripped by thugs – a fitting metaphor for what Jesse and his pals have done to the auto industry for the last 35 years.
Perfect.

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Sunday, August 29, 2010

The Gap


The US Government Matches Every Dollar In Tax Revenue With A Dollar In New Debt | zero hedge: "In our attempts to simplify the comprehension of the ongoing serfdomization of the US population, we would like to present one of the more persuasive charts which the administration would likely be loath to demonstrate. Having collated monthly data from the FMS' Daily Treasury Statement on incremental tax revenues (individual, gross), and new debt issuance, we observe the following rather surprising pattern: since September 2008, or the month when capitalism collapsed, and the Fed, and ever other global Central Bank had to step in as a backstop of last recourse to the western way of life, the US government has undertaken the most peculiar matching program: simply said, for every dollar of individual tax revenue, the government has issued just over one dollar of incremental debt. In other words, in the past two years, tax revenues alone would have proven insufficient by over half to fill the budget gap."

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Basic Needs (Bumped)

Guest Post: Hyperinflation, Part II: What It Will Look Like | zero hedge: "One of the effects of Chile’s hyperinflation was the collapse in asset prices.

This would seem counterintuitive. After all, if the prices of consumer goods and basic staples are rising in a hyperinflationary environment, then asset prices should rise as well—right? Equities should rise in price—since more money is chasing after the same number of stock. Real estate prices should rise also—and for the same reason. Right?

Actually, wrong—and for a simple reason: Once basic necessities are unmet, and remain unmet for a sustained period of time, any asset will be willingly and instantly sacrificed, in order to meet that basic need."
If you never read much about hyperinflation, this is what to read. Oh, and part the first also please. And even if you think you know that it's coming you need to read it too. Capiche?

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