Must Reads For The Week 6/24/17

Posted June 24, 2017 by austrianaddict
Categories: Must Reads For The Week

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RESULTS OF GOVERNMENT CENTRAL PLANNING

McDonalds Is Replacing 2,500 Human Cashiers With Digital Kiosks: Here Is The Math, at zerohedge.com. Economic forces are always finding more productive ways of providing goods and services to consumers. Without intervention from Government regulations and Federal Reserve printed money this transformation happens at the proper time. It is an incremental process that slowly relocates less productive labor, capital, and resources to more productive uses. The problem with central planners, and in this case minimum wage zealots, is their ‘good intentions’ are bringing the future into the present before it supposed to be here. Eventually and gradually automation replaces labor, just look at economic history. As wages gradually increase it leads to an incremental move toward automation at a certain price. But when central planners force sudden and large increased in minimum wages, the transformations it causes are more costly and disruptive to the economy (people) than if the market was allowed to let changes happen at the pace set by the market (the market: what results when millions of individuals are allowed to make decisions on what they will produce, consume, exchange and save).

New Mexico Health Insurer Proposes 80% Premium Hike, usnews.com. Another example of intervention by central planners creating disruptions in the healthcare market (or what is left of the healthcare market).

Good Luck Getting Out Of The Subprime Auto Loan When Used Car Prices Crash, at zerohedge.com. Look at the problem created by central planners in the auto loan market. Transporting future demand into the present results in over production. This over production wouldn’t have happened under normal market conditions. Now that future demand has already been used up, there is not enough ‘present’ demand to match the over production. The free market allocates scarce resources to their most productive uses with as little waste as possible. Government intervention is chaotic.

Government As The Source Of Monopoly: US Airlines Edition, by Peter Klein, at mises.org. Monopoly cannot exist in a free market as long as entry into the market is not restricted by Government. The airline industry is heavily regulated which means customer service isn’t a top priority. Does anyone who has flown recently disagree?

Canary In The Coal Mine: Unfunded Liabilities Have Turned Illinois Into A “Banana Republic“, at zerohedge.com. Government caving into Unions for years has led to this unfunded liability nightmare. There is no incentive for Gov. officials to fight the unions when expiring contracts are up for renegotiation because it is the tax payer dollars they are negotiating with. Politicians have no skin in the game. Government employees retire in their 50’s and then collect 30 plus years of benefits. If you add this to the fact that these pension plans have been underfunded, you see the math problem they have created for themselves. Incentives matter. The private and public sectors operate under different incentives.

Moody’s: Modest Downside Could Spark $3 Trillion Surge In Pension Liabilities, at zerohedge.com. It’s not just Illinois that has the pension crisis. Public pensions all over the US are in trouble. Why? We covered it above.

Privatize The New York City Subway System, by Robert Fullner, at mises.org. Another example of a Government run system failing. There is no incentive for New York’s Metropolitan Transit Authority to use scarce resources efficiently because tax payer money is always available to bail them out.

Philly’s Soda Tax Is Shaping Up To Be An Epic Flop, at phillymag.com. No shock here. A black market for soda is springing up just as the black market for cigarettes was created in NYC when they hiked the cigarette tax. The tax also has led to job losses at Coca-Cola since sales declined 32% (read here).

MISCELLANEOUS TOPICS

Hero Homeowner Holds Escaped Georgia Inmates At Gunpoint Until Arrests, at tammybruce.com. Good guy with a gun stops bad guys.

Judicial Watch: Obama NSC Advisor Susan Rice’s Unmasking Material Is At Obama Library, at judicialwatch.org. Insiders using the law to hide information! Documents from the Obama administration are now at the Obama Presidential library. The Presidential Act closes access to these records for 5 years after the President leaves office. With the millions of pages of federal law, do you think there are other places where insiders can hide records?

Major Free Speech Victory, SCOTUS Rules For ‘The Slants’ And Strikes Down Federal Trademark Restriction, at reason.com. The Obama Patent and Trademark Department lost this case 8-0. How many Supreme Court cases end up with no dissenting opinions? This was an attempt by the Obama administration impose their idea of political correctness on all of us. They hoped the defendant wouldn’t be willing to pay the monetary and psychic cost of fighting the unlimited resources of the Federal Government.  What a waste of time and money. But thank God they fought this.

Soros, Teneo And Donors To McCain Institute, dailycaller.com. Senator McCain may be trying to create a smaller version of the Clinton’s money laundering scheme, known as the Clinton Global Initiative.

Complete Idiotic Commentary From The Commerce Secretary, at economicpolicyjournal.com. Excerpt from the article: “The entire concept of the balance of payments, weighing trade deficits and surpluses, is absurd and at epicenter of economic confusion.” Trade policy is an area where Trump needs to get educated.

East Lansing Bans Apple Farmer From Market From Being Faithful Catholic, at thefederalist.com. An example of tolerance by politically correct bureaucrats.

CARTOONS

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Some Econ Homework

Posted June 20, 2017 by austrianaddict
Categories: Econ. 101, Econ. 201

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Jean-Baptiste Say And The “Law Of Markets“, by Richard Ebeling, at fff.org. Say’s ‘Law Of Markets’ states: “A product is no sooner created, than it, from that instant, affords a market for other products to the full extent of its own value.”…..As each of us can only purchase the productions of others with his own productions – as the value we can buy is equal to the value we can produce, the more men can produce, the more they will purchase.”

You can’t consume what has not been produced. Production creates the ability to consume. The more you produce the more you can consume.

Say: “It is not the abundance of money but the abundance of other products in general that facilitates sales….Money performs no more than the role of a conduit in this double exchange. When the exchanges have been completed, it will be fount that one has paid for products with products….Should a tradesman say, ‘I don not want other commodities for my woolens, I want money,’ there could be little difficulty in convincing him, that his customers cannot pay him money, without having first procured it by the sale of some other  commodities of their own….”

Counterfeiting money creates an exchange of an actual produced good for dollars that are not backed by corresponding production. This is theft. Even if the counterfeiting is done ‘legally’ by The Federal Reserve, it is still an exchange of something for nothing (aka theft).

There are always imbalances with supply and demand in the market, but they are usually corrected rather quickly. Monetary intervention by the Fed creates imbalances that last much longer and are only corrected by stopping the monetary intervention or an eventual bursting of the bubble.

Federal Reserve monetary manipulation has been going on for about a decade. Does anyone know what is real and what is fake in our economy right now? All we can say is there are major imbalances in our economy that will eventually be liquidated, and it won’t be pretty.

“Priming The Pump” Won’t Create Real Wealth, by Frank Shostak, at mises.org. When a recession happens labor and capital become idle. ‘Experts’ think the way out of the recession is to increase demand for goods and services so these idle labor and capital will become employed once again. Ignoring how the over-supply of labor and capital happened in the first place can lead to the same Government and Fed policy solutions which created the problem in the first place. Idle resources are not the problem. Idle resources are the symptom of the problem. The problem is the initial intervention into the market using the policies of below market interest rates and injecting electronically printing counterfeit money into the economy.

Excerpt from the article: “Commentators are correct in believing that what prevents the expansion of the production and the utilization of idle resources is the lack of credit. There is, however, the need to emphasize that the credit that is lacking is the productive credit – the one that is fully backed by real wealth (real savings). The fact that this type of credit is scarce is the outcome of previous episodes of expansionary monetary mischief by the central bank, which resulted in the diversion of wealth from wealth producers to non – wealth producers.”

“What most commentators advocate is the expansion of credit out of “thin air,” via central bank…. direct monetary injections or via intervention in the money markets to maintain a lower target interest rate……This expansion of unbacked credit not only cannot revitalize the economy but, on the contrary, will set in motion a further weakening of the process of wealth generation.

Fed Officials Can’t See What’s Right In Front Of Them, Jonathan Newman, at mises.org. Fed officials can’t see the forest for the trees.

Here is an excerpt from the article:”Minnesota District Bank president, Neel Kashkari recently wrote…..the Fed faces a dilemma regarding asset bubbles and whether of not they should be met with raising interest. He summarizes in five points.”

-“It is really hard to spot bubbles with any confidence before they burst.”

-“The fed has limited policy tools to stop a bubble from growing, even if we thought we spotted one.”

-“The costs of making policy mistakes can be very high, so we must proceed with caution.”

-“What we can and must do is ensure that the financial system is strong enough to withstand the inevitable bursting of a bubble.”

-“Monetary policy should be used only as a last resort to address asset prices, because the costs of the economy of such policy response are potentially so large.”

“Then he admits that it is possible artificially low-interest rates increase the probability of asset bubbles forming: “Low rates…could make bubbles more likely to form in the first place.” He laments that there is no economic theory to back this up….”

It is hard to believe that with his myriad of  ‘credentialed ignorance’ he has never heard of the Austrian Business Cycle Theory.  Excerpt from the article:

“For Mises and Hayek, the policy mistake involves any creation of credit out of thin air…….If any central bank increases the money supply through the financial system, it means that borrowers have the privilege of being the first to bid up prices as the new money ripples through the economy.”

“It means that nominal incomes, employment, consumption, the prices of capital goods, and other asset prices will increase. It means that capital will be directed into new, longer, and riskier lines of production, beyond what would have happened at the prevailing levels of real saving. These lines of production will turn out to be unprofitable as the increasing scarcity of capital becomes apparent and the costs of production become prohibitively high. Incomes, employment, consumption, and stock prices plummet as laborers and capital owners seek productive and profitable employment. The bust is made up of all of the necessary corrections for the errors made during the boom. Additional artificial credit will only delay this process and make it more painful when the day comes.

Mr. Kashkari, you said: ” Monetary policy should be used only as a last resort to address asset prices, because the cost to the economy of such policy responses are potentially so large.” Mr. Kashkari, do you know that the Fed monetary policies “of last resort” have been in effect since before 2000? These policies caused the tech and housing bubbles. What have been the costs to the economy after 20 years of these policies? They are incalculable. The only way to stop this waste is to allow interest rates to be set by the market and stop the money printing. This will bring about a recession which will correct all the dislocations of resources, capital and labor that were brought about by these policies. All thought the losses will be high, they won’t come close to the losses that will be incur the longer these monetary policies are allowed to continue.

Related ArticleInterest Rates Set By The Market vs. Interest Rates Set By The Fed, at austrianaddict.com.

Related ArticleReal Savings = True Credit. Printed Savings = False Credit, at austrianaddict.com.

Related ArticleThomas Woods Explains The Austrian Business Cycle, at austrianaddict.com.

Related ArticleThe Fed has Proved The Lefts “Trickle down Straw Man” Doesn’t Work. at austrianaddict.com.

Must Reads For The Week 6/17/17

Posted June 17, 2017 by austrianaddict
Categories: Must Reads For The Week

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It’s Confirmed: Without Government Subsidies, Tesla Sales Implode, at zerohedge.com. There is no market for Tesla vehicles without taxpayer-funded Government subsidies. Elon Musk = welfare recipient.

The Collapse Of Penn Station: Another Failure Of Government “Enterprise“, by Gregory Bresiger, at mises.org. Of course the answer to this government failure is more taxpayer money.

“It’s Madness” – Massive Anti-Government Protests In Venezuela Worsen, Patterns Emerge, at zerohedge.com. Venezuela’s socialist experiment isn’t working out. I’m shocked!

Cuba Scrambles As Venezuela’s Oil Industry Collapses, at zerohedge.com. Cuba’s socialist regiem couldn’t succeed on its own. It received help from the communist Russia until Russia collapsed. Socialist Venezuela was next to help. Now it is collapsing. The lesson we should take from the history of Cuba, the Soviet Union and Venezuela is communist and socialist centrally planned economies don’t work.

U..S. Gives OPEC A Run For Its Money, at instituteforenergyresearch.com. The American oil industry has prospered in spite of Obama era policies designed to get rid of fossil fuels. American shale and deep water drilling became profitable when oil was at $125 a barrel. Improvements in technology has now made them profitable at $40 a barrel. OPEC has lost its power.

U of M Climate Change Study Postponed Due To Climate Change, at winnipeg.freepress.com. I thought polar ice was melting at a rate that was supposed to have NY city under water by now? Now they can’t do a global warming study because the ice is too thick. Was the man made global warming narrative fake science, fake news or both?

An Idaho Makeup Artist Just Got The best Revenge, by Dustin Hurst, at fee.org. There are licensing laws in Idaho to apply makeup? Seriously? It’s great that this makeup artist gets the last laugh.

Unable To Pay Bills, Illinois Sends “Dear Contractor” Letter Telling Firms to Halt Road Work On July 1, at zerohedge.com. You can’t spend more than you steal in taxes for an extended period of time, because eventually economic reality wins.

GREAT NEWS Misesian Named A Brexit Minister, at economicpolicyjournal.com. We need more Misesians infiltrating the progressive left strong holds.

EU Sues Poland, Hungary And Czech Republic For Refusing To Accept Refugees, at zerohedge.com. The Czech Republic, Poland and Hungary are not experiencing terrorist attacks like the other members of the EU, because they haven’t taken in refugees like other EU members have. So now the EU is suing them because of their decision to not commit slow suicide. One of the two sides in this dispute is really stupid.

Four Reasons Why College Degrees Are Becoming Useless, by Jonathan Newman, at mises.org. The economic reality of getting a college education is now being felt. Does the future benefit of a college education out weigh its monetary and psychic cost?

The Two Sides Of Pope Francis, by economicpolicyjournal.com. Excerpt from the article: “The Popes themes are very much in the tradition of classical liberalism and its commitment to economic freedom: community, open social interactions, helping others, and jumble, transparent institutions. What is troubling about Pope Francis is that he spends much of his time traveling the world advocating (Marxist) polices that undermine these goals.

Lee Camp Explains How The New York Times Manufactures “Hit Piece Propaganda”, at zerohedge.com. How fake news is produced.

NBC News Just Defended Collective Farms In The Soviet Union, at economicpolicyjournal.com. The American left always sided with the collectivist economic policies of the Soviet Union. Even after the Soviet Union collapsed the American left’s excuse was that those policies weren’t tried by the right people. Namely them.

Women-Only Spa’s ‘No Male Genitals’ Rule Ignites Transgender Debate, at winnipegfreepress.com. Here is the progressive left’s conundrum? Do transgenders rank higher on the progressives value scale than women? Identity politics can be difficult because you eventually have to choose between groups. But seeing people as individuals who have constitutional protection from government coercion makes decisions very easy.

Left Forum Cancels Lesbian Panel Questioning Trans Advocacy Funding, at thefederalist.com. Here is the progressive left’s conundrum? Do transgenders rank higher on the progressives value scale than lesbians? Identity politics can be difficult because you eventually have to choose between groups. But seeing people as individuals who have constitutional protection from government coercion makes decisions very easy.

CARTOONS

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Please See Through The Politicization Of Every “Serious Crisis”

Posted June 14, 2017 by austrianaddict
Categories: Government and Politics, Miscellaneous

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Vector hand drawn Politician concept sketch. Politician standing on globe and playing with small people as puppets

Every time there is a shooting, one of my articles titled; “You Never Let A Serious Crisis Go To Waste”, gets a lot of views.  The post talked about the politicization of the Sandy Hook shootings by President Obama just 6 hours after the shootings.

The shootings by an individual at an early morning baseball practice today of House and Senate Republicans who were preparing for tomorrows charity game against House and Senate Democrats, brought out some of the usual suspects who were trying to make political hay out of a crisis. Here is what the Governor of Virginia, Terry McAuliffe, had to say about the situation. It took him less than a minute to ‘never let a serious crisis go to waste’.

Here is an excerpt from the video: “……let me say this; I think we need to do more to protect all of our citizens. I have long advocated, this is not what today is about, but there are too many guns on the street. We loose 93  million Americans a day to gun violence and I’ve long talked about this. Back ground checks, shutting down gun show loop holes, that’s not for today’s discussion. But it’s not just about politicians, we worry about this every day for all of our citizens.”

A reporter then asked a great question; But if it’s not the day for it, why are you bringing it up at this time?”

A reporter then asked what I thought would be an obvious question; “….sir did you say 93 million, that’s a big number?”  McAuliffe corrected his “obvious mistake” about the number of Americans “lost a day to gun violence” from 93 million to just 93 individuals a day.

NEVER LET A SERIOUS CRISIS TO WASTE

McAuliffe made a subjective decision that his political agenda concerning gun control was more important than anything else he could have talked about when questioned after the situation. At that moment in time he decided his best course of action was to say what he said. His action tells us all we need to know about him. His subjective decision allowes us to judge him objectively.

Here is an excerpt from my article; “You Never Let A Serious Crisis Go To Waste”.

“The full quote, “You never let a serious crisis go to waste. And what I mean by that it’s an opportunity to do things you think you could not do before.” is by Rahm Emanuel, former White House Chief of Staff under President Obama. This reflects the thinking of Saul Alinsky, who wrote “Rules for Radicals.” “Rules for Radicals” is the default position the President, and Emanuel operate under. If you understand this, it will be easier to analyse everything they say and do.”

“Here is the template. 1) Use a tragedy as a crisis, or create a crisis where none exists. 2) Paint the crisis with as much emotion as possible, and throw logical analysis out the window. 3) Propose the one and only solution to the problem, which just happens to coincide with what you’ve wanted to implement for many years. 4) Paint anyone who opposes your one and only solution as evil, uncaring, not smart enough to understand the nuanced brilliance of your solution, or in the pockets of …. you pick the evil entity. 5) Force the solution on the people by any means, whether legislatively, by executive order, or through the legal system. 6) When the unintended consequences of your solution rear their ugly head, use them as a reason for more brilliant solutions to made up crises.”

“Forgive my cynicism, but, when I heard the President’s emotional address on the radio about six hours after the shootings in Connecticut, I thought about the “Rules for Radicals” template. “You never let a serious crisis go to waste” is in full operation, because this is who politicians are in general, and who the President is in particular. Politics is the world in which they operate, and the lens through which they view everything. Because of this underlying reality, and because they have the power of Government behind them enforcing their edicts, you should never trust what they say or do, and always question their motives.”

CONCLUSION

Politics is going to be played on both sides of this “crisis”. We have to be smart enough to see through the political BS. I just want to point out that this political game we have been dragged into is a losers game for us. Politicians are the only ones who win when we allow them to split us up into groups, and then pit these groups against each other. Groups don’t act. Only individuals can act. Is there pattern prediction of individuals belonging to certain groups? Yes. But this particular individual shooter is probably an outlier and not part of any group pattern. At least let’s hope so!

 

Related ArticleHuman Action Reveals The Reality About Political Decisions, at austrianaddict.com.

Related ArticleMises’ “Human Action” Explains Lies About Libya, at austrianaddict.com.

Related ArticleLet’s Think About The Shutdown, The Debt Ceiling, And Obamacare, at austrianaddict.com.

Must Reads For The Week 6/10/17

Posted June 11, 2017 by austrianaddict
Categories: Must Reads For The Week

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WTI Holds Below $48 As US Oil Rig Count Rises For 20th Week In A Row, at zerohedge.com. The American shale industry (fracking) has defeated the OPEC cartel.

Russia’s Economy Minister: “We Can Live forever At $40 Oil“, at zerohedge.com. They don’t have a choice.

The Latest Solar Scam: “Investing” In “solar Timeshares” aka “Community Solar Gardens.” Only $100/Month For 20 Years, by Mark M. Perry, at carpediemblog. I guess the phrase “community solar garden” doesn’t sound like a scam to people who lean left. That phrase would set of warning bells in my head.

35,000 Off Alabama’s Food Stamp Rolls Due To New Work Requirements, at al.com. Incentives matter.

People Not In The Work Force Soar By 608,000, at zerohedge.com. There are 94.983 million working age people not in the work force. That means only 62.7% of working age people have jobs. This the lowest participation rate since the late 70’s. More people consuming without corresponding production eventually doesn’t work out well. Does it?

Business License Required For Teens To Cut Grass, at abc3340.com. Here is an example of government constraining the economic activity teens. Mowing grass as a teen is where kids learn that production comes before consumption and many other lessons.

Chicago Cab Industry Collapsing as Medallion Foreclosures Soar, at zerohedge.com. What fracking has done to the OPEC cartel, ride sharing apps like Uber and Lyft are doing to the Taxi Cartel. Market forces are more powerful than government decrees.

Kid Zuckerberg’s Generosity With Your Money, at economicpolicyjournal.com. The “new” idea of universal basic income isn’t new at all. Excerpt from the article: “…..”universal basic income” goes back to at least the mid-19th century and the world’s most famous drunk, Karl Marx. Except Marx called it communism, a word that didn’t attempt to hide its connection to one of the most dreaded words in the English language – commune or communal.

Anthem To Exit 2018 Obamacare Exchange, at businessinsider.com. It seems like every other week we have another story about an insurance company getting out of the Obamacare exchanges. Once again we have an example of economic reality being more powerful than government decrees.

Healthcare: “Insurance” Now Means Redistribution, by Gary Galles, at mises.org. What we call healthcare insurance today is not insurance at all. Excerpt from the article: “How do we know insurance is not the real issue? Because claimed ‘reforms’ violate so many principles of insurance. Insurance is about reducing risk in the face of uncertain events. But insuring things that would happen for certain, say annual checkups, offers no risk reduction – it offers no benefits to weigh against the added costs of insurance administration that must be borne – yet such coverage is frequently mandated….….”

This Is How Bad It Is In Connecticut: The State May Start Issuing “Puerto Rico” Bonds, at economicpolicyjournal.com. Who would have thought that raising taxes on high income earners would create an incentive for them to move to a lower tax state?

Trump Deflates Paris: Nod To James Hansen, Rebuke To John Holdren, at masterresource.com. excerpt from the article: “The good news is that the Paris climate agreement, weak and aspirational to begin with, will increasingly to the way of the Kyoto Protocol. President Trump did a big favor for the US and the world by pulling out.

 

June 6 D-Day

Posted June 6, 2017 by austrianaddict
Categories: Miscellaneous

Tags: , , , , ,

D-DAY PLUS 73 YEARS

This was my D-Day post from 2014 which was the 70th anniversary of the invasion.

I saw a show on the History Channel this past weekend and it got me thinking about the men who were involved in the Normandy invasion code-named Operation Overlord, especially my uncle Bill. Staff Sergeant William Sackenheim, was a paratrooper in Company E  508th Parachute Infantry Regiment 82nd Airborne Division. He jumped into Normandy approximately 1:30 am on June 6 1944 with the mission to take the town of Ste.-Mere-Eglise.

Image result for map of d-day invasion of normandy

 

When I was growing up I knew my Uncle Bill as a man who seemed larger than life, was really funny, and lit up the room he was in. I was always laughing within seconds of seeing him. My mom told me he was a paratrooper in WWII and was awarded a purple heart, but I didn’t know much more than that until I was much older. About the time of  the 50th anniversary of D-Day in 94, my brother and I were talking to my uncle at a funeral, and a man named Earl came up and they started talking. My uncle said ” Earl remember where the hell we were 50 years ago.” And Earl smiled and said “yes”. So I asked if he was a paratrooper like my uncle, and he said “no”. My uncle said “Earl was in one of those ships he flew over crossing the channel to make his jump.” I said you landed on one of the beaches on D-Day and he said “yes, Omaha”. My uncle said Earl was captured by the Germans, and I asked “what happened”, thinking he had maybe been a prisoner the whole war, and Earl said “oh, I escaped, I had to get the hell out of there”. I’m thinking you just don’t leave, there has to be a great story here. But I didn’t get to ask any more questions because Earl had already started talking to other people.

So my brother and I talked to my uncle a little more about D-Day and then asked if we could come over to his house in a couple of days, and he could tell us about D-Day and the war. Two days later we talked with my Uncle Bill for four hours about the war. One theme that always came up was how soldiers next to him got killed. He would always say “why was it him and not me”. I finally understood why my uncle seemed larger than life, it’s because he actually was larger than life.

Not only did my Uncle Bill jump on D-Day, he jumped in Operation Market Garden in Holland, and was in the Battle of the Bulge in The Ardennes in Belgium. He also saw the atrocities at Buchenwald. My uncle Bill passed away a few years ago. Soon these living monuments who are the WWII generation will all be gone. We will only be able to read their stories. My brother and I were lucky that we got to listen and see our Uncle Bill tell us about  his experiences.

TIME LAPSE MAP OF WWII IN EUROPE

AIRBORNE ASSAULT D-DAY

When I see historical footage like this I always think, my uncle did this.

Must reads For The Week 6/3/17

Posted June 3, 2017 by austrianaddict
Categories: Must Reads For The Week

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WE BID ‘ADIEU’ TO THE PARIS CLIMATE AGREEMENT

President Trump Announces US Withdrawal From The Paris Climate Accord, at zerohedge.com. Jerry Brown, Bill DeBlasio, Al Gore, Bernie Sanders, and Barack Obama respond to Trump pulling out of the Paris Climate Accord. If these five are for the Paris climate agreement, it must be nothing more than a socialist scheme for redistributing US tax payer money to the rest of the world. This agreement fits the world view of these gentlemen. Getting out doesn’t.

Obama Responds To Trump’s Withdrawal From Paris Climate Agreement, at zerohedge.com. First let me say this. President Obama. Since you didn’t send this treaty to the Senate for ratification, you had to know that the next President could get us out of this ‘agreement’  just as easily as you got us in to it.

Now here is what the former President said in his statement: “….the private sector already chose a low-carbon future. And for Nations that committed themselves to that future, the Paris Agreement opened the floodgates for businesses, scientists, and engineers to unleash high-tech, low-carbon investment and innovation on an unprecedented scale.”

Mr. President. The private sector didn’t choose “a low-carbon future”. Government ‘invested’ in green energy because the private sector wasn’t. The private sector doesn’t invest in technology that isn’t productive. Government ‘investment’ is nothing more than Politicians using taxpayer money to subsidize a non productive activity they think is a good idea (which means it fits their socialist world view). Once government money was available for the taking, crony capitalists, like Elon Musk and Jeffry Immelt, got in line for their share of tax payer dollars. Crony capitalist companies chose unproductive activities that were “made profitable” by tax payer dollars (Read-The Hidden High Cost Of Green Energy). So of course they’re against the US getting out of the Paris Agreement.

More from the former President: “…But even in the absence of American leadership……I’m confident that our states, cities, and businesses will step up and do even more to lead the way, and help protect for future generations the one planet we’ve got.”

First. It is OK if states, cities, and businesses want to freely choose this course of action. As long as they aren’t forced by the Federal Government or subsidized by the Federal Government.

Second. Getting out of the Paris Agreement is not the absence of American leadership. Getting out is American leadership. Leadership in America doesn’t come from political decrees. It comes from individuals coming up with new and better ways of producing output. A perfect example of American leadership is fracking. Fracking has broken the OPEC cartel because of the increased supply of oil. It has also helped lower US CO2 emissions because it has made natural gas so inexpensive that power plants are using natural gas instead of coal to produce electricity (If the purpose of the Paris Agreement was to lower carbon emissions they should be celebrating what fracking has accomplished). Here is an excerpt from an article I wrote titled; “Free Market Fracking Trumps Government Solutions When It Comes To Producing Energy.”

Market forces are more powerful than the hoped for results of central planners. The most recent example of this is the boom in oil and natural gas production, created by hydraulic fracturing [ fracking], which is taking place on private land in spite of Government policies. Our politicians shut down some Government lands to oil exploration, and made the process of getting permits for exploration on remaining lands more time-consuming [costlier]. They used their power, and our tax dollars, to promote and invest in, “green energy”. Green energy was going to create new jobs and lead our economy into the future; do you remember Van Jones the Green Jobs Tzar. As always, the plans by our best and brightest politicians, must be obedient to economic forces. Green energy has, and is, going bankrupt, in spite of being propped up by Government. Government tried to make carbon based fuels more expensive through regulation, and green energy more affordable through tax payer subsidies; And with all this Government intervention, the economic reality that green energy produces less energy at a higher cost, and carbon based fuel produces more energy at a lower cost, can’t be overcome.”

Elon Musk Leaving Trump Advisory Councils following Paris Agreement Withdrawal, at techcrunch.com. Having crony capitalist Elon Musk on a Government advisory council is like having the fox advising the farmer on how to make the hen-house more secure. (Read Here – Gov. Subsidies Helped Musk Attain $13.3 Billion Net Worth)

Studying The Climate Doesn’t Make You An Expert On Economics And Politics, by Ryan McMaken, at mises.org. Excerpt from the article: “…the Paris Climate Agreement isn’t a scientific study. It’s a political document that lays out a specific public-policy agenda…..to people who know nothing about economics or political institutions – public policy is like a magic trick. A group of politicians get together, declare that they’re going to solve problem X, and then problem X is magically solved, so long as everyone supports the “solution”…….what if the cure is worse than the disease?

THE REST OF THE MUST READS

To Lower Healthcare Costs, Try Freedom, by Julian Adorney, at mises.org. Quote from above. “Market forces are more powerful than the hoped for results of central planners.

The ‘Logic’ Of Protectionism Leads To An Absurd Conclusion: total Economic Self-Sufficiency At the Individual Level, by Mark J. Perry, at carpediemblog. Free trade increases wealth. Mercantilist protectionism decreases wealth.

Why Do Half-Measures Work For Markets, But Not for Socialism? by Ryan McMaken, at mises.org. Even as Venezuela fails as it adopts more socialist solutions, true believers say it isn’t true socialism. When a socialist country adopts some market solutions it helps lift more of their people out of poverty.

Auto Bloodbath: Lowest Domestic Auto Sales In Three Years Despite Record Inventories and Incentives, at zerohedge.com. Is the auto bubble about to burst?

Spying On You, Spying On Me, Spying On The President, by Andrew Napolitano, at lewrockwell.com. Once you  allow government surveillance outside of our fourth amendment rights. It is almost impossible to recapture the pit bull of government you let off the chain.

Voter Fraud? 5,500 Non-Citizens Discovered On Virginia’s Voting Rolls, at zerohedge.com. Now this is how you break the law to influence the election!

CARTOONS

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