Must Reads For The Week 5/20/17

Posted May 20, 2017 by austrianaddict
Categories: Must Reads For The Week

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How The Obama Precedent Empowered Trump, by Victor Davis Hanson, at victorhanson.com. Excerpt from the article: “A supposedly disinterested media’s ecstasy over Obama’s election ensured that its subsequent revulsion at Trump could be taken no more seriously. Once a journalist declares a president a god or capable of sending shocks down one’s leg, then he would be no more credible if he were to pronounce another president the anti-Christ or capable of causing boils on one’s appendages…….A critical media is not a mere reset button that one turns on and off at one’s convenience. Instead, once it was short-circuited after 2008, its burned-out switch cannot be flipped back on in 2007. In sum, there is no longer a believable media that can offer credible critiques of the Trump presidency.”

Sock Puppets Taken To An Entirely New Level: ‘Click’ Farms Of 10,000 Phones That Give FAKE Likes, by John Lott, at johnrlott.blogspot.com. Fake likes produce fake stats about which stories are trending on social media. You now have the ability to manufacture fake outrage. Related article – Up To 15% Of Twitter Accounts Are Fake, Study Finds, at zerohedge.com.

Donald Trump’s Big Problem, He Doesn’t Understand Power, at targetliberty.com. Trump is an outsider who doesn’t understand the game played by the insiders.

Dismantle The FBI, And Give Its Money Back To The States, by Ryan McMaken, at mises.org. The FBI has turned into a big bloated money-grubbing political bureaucracy. Its goal is to make sure the FBI is declared the winner in every situation. It’s job of law enforcement can be done better and cheaper if it was decentralized. The leadership of the FBI, (not the rank and file agents), aren’t the guys wearing the white hats like they have been portrayed.

Public-Sector Unions Keep The Gravy Train Flowing To Fire Departments, by Ryan McMaken, at mises.org. Another example of “public servants” feeding at the public trough. From 1980 to 2013 fire runs have declined from 3Million to 1.24 million. In a free market, as demand for a service decreases the supply of that service shrinks also. In the public sector the opposite seems to happen. Government public servants want to protect or increase their skimming operation at the taxpayers expense. Excerpt from the article: “Don’t let these facts get in the way of the romantic view of firefighting perpetuated by popular culture. No organization loves the fantasy version of firefighting better than the public unions that lobby constantly for more lucrative salaries and benefits for firefighters.”

Wind Turbines Are Neither Clean Nor Green And They Provide Zero Global Energy, by Matt Ridley, at spectator.co.uk. Can the taxpayer subsidized experiment of green energy finally be coming to an end? All the money, resources, time, labor and capital that has been wasted on green energy, could have been used for more productive activities. Government “investment” is an oxymoron, because ‘bureaucrats’ aren’t “investing” their own money.  Wasted resources are kept to a minimum in the private sector because businesses suffer losses. But in the public sector waste continues for longer periods of time because of the seeming unlimited supply of taxpayer money.

The reality about green energy is only optional for a little while. Read these articles. Wind Power: Michigan Voters In Three Counties Reject or Restrict It, at nationalreview.com. Oklahoma Ends Wind Tax Subsidy, at instituteforenergyresearch.org. Europe Has Little Output To Show For Its Wind And Solar Investments, at instituteforenergyresearch.org.

More Solar Jobs Is A Curse, Not A Blessing, at cfact.org. More workers employed in an industry that produces higher cost energy is a bad thing. It has taken longer for economic principles to correct for these non productive uses of resources, time, labor and capital. The tax payer money that government has invested in these non productive activities has distorted the market. The inevitable correction is happening. Fortunately economic laws always win.

The Other Shoe Drops: Prime Auto Loan Losses Surge As Recoveries Tumble, at zerohedge.com. Instead of decreasing supply to match decreasing demand, the auto industry brought future demand into the present by pushing subprime loans and low payment leases. We are going to see an over-supply of used cars because the  leases have ended and also because of subprime loan defaults. There is no present demand to support the over production because demand was borrowed from the future to keep the car manufacturing plants operating in the present.

CARTOONS

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New Gov. Healthcare Regulations Will Not Cure The Results Of Previous Gov. Regulations

Posted May 16, 2017 by austrianaddict
Categories: Government and Politics

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Politicians and bureaucrats are manipulated the masses into believing our healthcare costs can magically be lowered by bureaucratic edicts backed by the force of government. But our political betters fail to mention the high costs of today’s healthcare is a result of previous edicts by politicians and bureaucrats.

The reason we have been so easily manipulated is because, “ We’re All Born In The Middle Of The Story” (click here). Most people think history started the day they were born. They give little thought, or have no understanding of how the world that existed the day they were born came to exist as it did. Where we are today is the result of interventionist decisions made in the distant and recent past by individuals in government which affected previous decisions made voluntarily by individuals in what we can safely call our hampered (free) market system.

GOVERNMENT INTERVENTION INTO HEALTHCARE

How did we arrive at our current “healthcare crisis”? This article by Mike Holly titled How Government Regulations Made Healthcare So Expensive, gives a brief history of how political and bureaucratic intervention, backed by the force of government, has led to our current healthcare mess.

Government intervention, starting in the early 1900’s, has worked to restrict the supply of and increase the demand for healthcare. The result of restricting supply and increasing demand is higher prices. Since the previous interventions of politicians and bureaucrats have increased the cost, the present politicians and bureaucrats are trying to shift the costs to the already insured and to the taxpayers.

Here is an excerpt from the article:

“In 1910, the physician oligopoly was started during the Republican administration of William Taft after the American Medical Association lobbied the states to strengthen the regulation of medical licensure and allow their state AMA offices to oversee the closure or merger of nearly half of medical schools and also the reduction of class sizes. The states have been subsidizing the education of the number of doctors recommended by the AMA.”

  • “In 1925, prescription drug monopolies begun after the federal government led by Republican President Calvin Coolidge started allowing the patenting of drugs. (Drug monopolies have also been promoted by government research and development subsidies targeted to favored pharmaceutical companies.)”
  • “In 1945, buyer monopolization begun after the McCarran-Ferguson Act led by the Roosevelt Administration exempted the business of medical insurance from most federal regulation, including antitrust laws. (States have also more recently contributed to the monopolization by requiring health care plans to meet standards for coverage.)”
  • “In 1946, institutional provider monopolization begun after favored hospitals received federal subsidies (matching grants and loans) provided under the Hospital Survey and Construction Act passed during the Truman Administration. (States have also been exempting non-profit hospitals from antitrust laws.)”
  • “In 1951, employers started to become the dominant third-party insurance buyer during the Truman Administration after the Internal Revenue Service declared group premiums tax-deductible.”
  • “In 1965, nationalization was started with a government buyer monopoly after the Johnson Administration led passage of Medicare and Medicaid which provided health insurance for the elderly and poor, respectively.”
  • “In 1972, institutional provider monopolization was strengthened after the Nixon Administration started restricting the supply of hospitals by requiring federal certificate-of-need for the construction of medical facilities.”
  • “In 1974, buyer monopolization was strengthened during the Nixon Administration after the Employee Retirement Income Security Act exempted employee health benefit plans offered by large employers (e.g., HMOs) from state regulations and lawsuits (e.g., brought by people denied coverage).”
  • “In 1984, prescription drug monopolies were strengthened during the Reagan Administration after the Drug Price Competition and Patent Term Restoration Act permitted the extension of patents beyond 20 years. (The government has also allowed pharmaceuticals companies to bribe physicians to prescribe more expensive drugs.)”
  • “In 2003, prescription drug monopolies were strengthened during the Bush Administration after the Medicare Prescription Drug, Improvement, and Modernization Act provided subsidies to the elderly for drugs.”
  • “In 2014, nationalization will be strengthened after the Patient Protection and Affordable Care Act of 2010 (“Obamacare”) provided mandates, subsidies and insurance exchanges, and the expansion of Medicaid.”

“The history of medical cost inflation and government interference in health care markets appears to support the hypothesis that prices were set by the laws of supply and demand before 1980 and perhaps 1990. Even the degree of monopolization and nationalization promoted by politicians before 1965 was not enough to cause significant cost inflation and spending increases (Figure 2) until demands created by Medicare and Medicaid outstripped the restricted supply of physicians and hospitals.”

WHAT HAPPENS NOW?

Can we get back to a free market healthcare system, or are we going to end up with a government-run single payer system? The passage of time means there will always be change, so no one can predict where this ends because nothing is ever final. We had a free market healthcare system at one point in time. But eventually politicians and bureaucrats granted monopoly status to doctor licensing boards, medical schools, drug companies, and insurance companies, on the one hand, and subsidized the use of healthcare on the other. The incremental change over time was hardly noticeable. But decades later we are close to a government-run wingle payer healthcare system.

Now that “One-Third Of Americans Are On Government Healthcare” (click here), it will be difficult to get rid of this “entitlement”. We’ve already heard the Democrats talking about how all the people who have health insurance because of Obamacare, will lose it under the Republican replace bill. They neglect to tell you about how the increased premiums of the already insured, plus taxpayer subsidies are paying for it (That which is seen and that which is not seen – Bastiat).

If you add the entitlement of government granted monopoly positions in the supply of healthcare we can see that moving away from government central planning of healthcare and toward a free market in healthcare will be difficult. Change will happen either incrementally or categorically.

The American Healthcare Act (click here to see what is in the bill), passed by the Republican controlled house, is an attempt to incrementally repeal and replace Obamacare. It is not a very good attempt. Republican leaders can only muster enough courage to try incremental change at this point. The Republican bill is not enough to change the direction on the road we are traveling.

I think categorical change is the only thing that will turn us around and get us headed in the other direction. The inevitable collapse of our present healthcare system will bring about the opportunity for this categorical change back toward a free market healthcare system. The scary part about a collapse, is it also presents the opportunity for central planners to attempt the implementation of a government-run single payer healthcare system. How do we make sure a free market, and not a government run system, will rise from the ashes of a healthcare collapse?

PEOPLE HAVE TO BE EDUCATED ABOUT THE WHOLE STORY

Being born in the middle of the story doesn’t mean we have to be ignorant about the whole story. The election of Trump, or the rejection of the status quo embodied by Hillary, shows people instinctively know something is wrong with our healthcare system. Trump ran on the repeal and replacement of Obamacare. The fact that people instinctively know something is wrong provides an opportunity to help them understand how government regulations have led to our current healthcare system. How our current healthcare system is not a free market system. How more regulations are not the solution. How the best answer to our failing healthcare system is to allow free market solutions, which means getting rid of existing government healthcare regulations.

Growing numbers of people know something is wrong. They have to understand how we arrived at this point in time. Because when they are faced with the categorical decision between single payer or free market they won’t be fooled by political demagoguery.

Here are some articles about free market solutions for healthcare.

The Bill To Permanently Fix Healthcare For All. at market-ticker-.org

A Four Step Healthcare Solution. at mises.org.

The Impossible Healthcare Solution: Go Back To Cash. at oftwominds.org.

 

Related ArticleHealthcare: Market Solutions vs. Bureaucratic Decrees, at austrianaddict.com.

Related ArticleHow Would Government Run Healthcare Work? Look At The VA. at austrianaddict.com.

Related ArticleLet’s Look At Government Run Healthcare, at austrianaddict.com.

Must Reads For The Week 5/13/17

Posted May 13, 2017 by austrianaddict
Categories: Must Reads For The Week

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Why Tesla’s Solar Roof Is Just Another Giant Taxpayer Gift To Elon Musk, at zerohedge.com. Elon Musk is skilled at getting his hands on taxpayer money. He is nothing more than a welfare recipient. If a business isn’t profitable without taxpayer money, it shouldn’t exist. Taxpayer money shouldn’t be given to any businesses.

The Minimum Wage Eats Restaurants, at econoicpolicyjournal.com. As the minimum wage rises via government decree. Restaurants close. If these restaurant owners were as talented as Elon Musk, they would get taxpayer dollars from government to pay for the mandated minimum wage increase.

How Fed-Enabled Zombie Companies Crush Productivity Growth, at zerohedge.com. Excerpt from the article: “When lagging firms don’t go bust, they hog scarce resources and drag down productivity…..The survival of weak companies drags down average productivity, but the consequences for growth are even worse. Since such firms take up scarce resources, their prolonged survival (or their delayed restructuring) inflates wages relative to productivity, depresses market prices and undermines investment – all of which deters the expansion of productive companies, particularly startups, and amplifies the mismatch of skills.”

On The AFL-CIO’s Inflated 341-to-1 CEO-To-Worker Pay Ratio, And The Statistical Legerdemain Used To Produce It, by Mark J. Perry, at carpediemblog. When ‘fake stats’ are never analyzed they produce ‘fake news’. The media accepts ‘fake stats’ as long as they fit the media’s vision of the world.

How Capitalism is Setting Washerwomen Free, at fee.org. Excerpt from the article: “Has anything changed the world more than the internet? …….one invention – an engine of liberation – has had a far more powerful effect on daily lives. He means the washing machine…….the greatest invention of the industrial revolution. It freed women from the chore of laundry – or at least from spending one full day a week every week doing it.”

Would You Lease – To -Own A Pair Of Sneakers, by George Pickering, at mises.org. Excerpt from the article: “Unlikely as it is that debt-financed Air Jordans will touch off the next worldwide recession, they nevertheless offer a microcosm of the forces currently forming unsustainable bubbles in an increasing number of markets throughout the economy.”

Trade Ignorance and Demagoguery, by Walter E. Williams, at jewishworldreview.com. I wish Trump would sit down with Dr. Williams for a day and learn something about economics.

California, Illinois, and New York Keep Losing People to Other States, by Ryan McMaken, at mises.org. People are voting with their feet. High taxes, increasing regulations and the high cost of living are incentives that force people to escape to greener pastures.

The Most Dangerous Book On Economics Ever Written For Kids, at economicpolicyjournal.com. The left is propagandizing children into believing capitalism is bad and communism is good.

Hero’ Stopped Mass Murder By Crazed Bar Patron Who Was Armed To The Teeth, Police Say, at dallasnews.com. Gunman who killed sports bar manager is shot by concealed carry holder. Good guy with a gun stops a bad guy with gun.

Senate Hearing Summary: Everything you Thought You  Knew About Russia/Comey Just Got Destroyed, at zerohedge.com. Does anyone outside of the Washington establishment really think this is important? This is the political game of who can make the other side look bad. The people inside the beltway don’t understand how much people outside the beltway are sickened by the political game. We don’t want to play this game or watch this game played anymore.

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Must Reads For The Week 5/6/17

Posted May 6, 2017 by austrianaddict
Categories: Must Reads For The Week

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FCC Chairman Ajit Pai On Why He Is Rejecting Net Neutrality Rules, at reason.com. Free speech and access to information are important tools in pushing back against the propaganda of status quo institutions. Government bureaucracies, political parties, mainstream media, the Fed and it’s banking satellites, the health system, and our education system are just a few that need their power reduced. These institutions do not like information about their skims and scams to be found out.

Why The New York Times Is Cheering On “Censorship Algorithms”, at zerohedge.com. U.S. mainstream media  wants to use algorithms to purge the internet of stories it decides is fake news. They don’t like the fact that their monopoly on information no longer exists. Every status quo institution wants to hold on to its power. Fortunately for us the internet genie is out of the bottle.

The Pope’s Favorite Straw Man: Individualism”, by Ryan McMaken, at mises.org. It is OK for the Pope to be ignorant about economics, as long as he doesn’t pontificate about economics.

ESPN Anchor Admits Network Failing Because Of Politics, at tammybruce.com. People watch sports to escape the political BS they are bombarded with everyday.

Jimmy Kimmel Opens Up About His New Born Son’s Heart Surgery And Praises Obamacare, at npr.org. Emotion is not thinking. This is why I haven’t watched any late night shows since Johnny Carson. I don’t want to be preached to by someone who is supposed to make me laugh. We are headed toward a single payer government-run healthcare system and Kimmel obviously supports this. This direction will not be stopped by the House repeal bill. Does Kimmel understand that under his desired government-run single payer system, a bureaucrat, guided by bureaucratic rules, would have decided if his son would have had the surgery or not. It wouldn’t have been his decision. Emotional pleas do not change the reality of the cost of healthcare goods and services. Government subsidies, taxes, rules and regulations created these high cost. After the costs rise, Government then passes regulations that attempt to hide or shift the costs to someone else. Getting back to a true free market in healthcare is the only way to lower healthcare costs. What are the odds of that happening?

Obamacare Implosion: Last Major Healthcare Provider Pulls Out Of Iowa Leaving No Options In 2018, at zerohedge.com. Also: Obamacare “Death Spiral”: Maryland Insurer Seeks 50% Premium Increase for 2018, at zerohedge.com. How is our centrally planned healthcare system working out?

Maduro Hands Out Free Homes, Hikes Minimum Wages To Counter Angry Protests Wave, at zerohedge.com. Free stuff and setting prices is socialist central planning. Government intervention like this is how Venezuela got into this mess in the first place. How are these policies going to improve a situation that policies like this produced?

Philly Beverage Tax Blowback: Coca Cola Sales Plunge 32%, at zerohedge.com. Who would have thought increasing the price would lead to less being consumed. This is incremental socialism.

Dakota Access Pipeline Protest Camp Is Ecological Mess. State May Sue To Recover Losses, at kfgo.com. Do as I say not as I do. These people protested the pipeline because of possible ecological disasters. In the process, they created a real ecological disaster. We should never take these kinds of people serious.

It Takes 79 Solar Workers To Produce Same Amount Of Electric Power As One Coal Worker, by Mark J. Perry, at carpediemblog. Even thought solar and wind are subsidized by tax payer dollars, they can’t match fossil fuels in producing cheap efficient energy.

Northern Arizona U. Professors Claim Student Recordings Are Part Of An Attack, at arizonadailyindependant.com. Students are pushing back against the education establishment.

Barack Obama Officially Endorses Emmanuel Macron, at zerohedge.com. Obama says the hell with influencing elections covertly. I’m going to try to influence the French election overtly. People who think that governments don’t try to influence elections are naive. Did Russia try to influence our election? Yes. Did Obama try to influence Netanyahu’s election (read here)? Yes. Did Obama try to influence the Brexit vote (read here)? Yes. Did late night shows try to influence the election? Yes. Did the mainstream media try to influence the election? Yes. Did wall street try to influence the election? Yes. Did unions try to influence the election? Yes. Did you try to influence the election? There is a big difference between trying to influence an election and tampering with the casting and counting of votes.

CARTOONS

at therightreasons.net

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Must Read “Leftovers”

Posted May 3, 2017 by austrianaddict
Categories: Leftovers

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Here are some articles I’ve had in the archives for a while.

WE SHOULDN’T TRUST INDIVIDUALS POSSESSING GOVERNMENT POWER

IRS TARGETING AND LOIS LERNER

Court Rejects IRS’s Plea To “Just Trust Us”, Permits Discovery Into IRS Targeting, at aclj.org.     Another Victory Over The Abusive IRS Targeting Of Conservatives, at aclj.org. When the IRS can slow down the legal process for four of more years, there is no justice. Government agencies have unlimited finances to drag out every case. The plaintiff doesn’t.

Lois Lerner Wants Her Deposition In Tea Party Case To Be Sealed: She’s Afraid People Will Want To Kill Her, at tammybruce.com. Lois Lerner doesn’t really believe her life is in danger. She just wants to protect her @$$. The people she targeted haven’t threatened her up to this point. Even though they know she targeted them. She has been collecting her pension ever since she retired, before she could be fired. Can you get a sweet gig like that?

Most of these bureaucrats are not elected. But they are politically biased toward protecting their fiefdoms.

YOU DECIDE IF OBAMA ADMINISTRATION SURVEILLED TRUMP

Obama Officials Made List Of Russia Probe Documents To Keep Them Safe, at nbcnews.com. Or was the purpose to share it so widely so it could eventually be leaked?

Did President Obama’s Own Defense Deputy Admit Obama White House Spied On Candidate/President-Elect Trump? at the burningplatform.com. What do you think?

Confirmed: Susan Rice “Unmasked” Trump Team, at zerohedge.com. Leaking who was unmasked is the problem. She is not denying back door surveillance happened.

Susan Rice Responds To Trump Unmasking Allegations: “I Leaked Nothing To Nobody” at zerohedge.com. I am not much of a grammarian but I think her quote is a double negative. Which means she leaked something to somebody. What does “incidental surveillance” mean?

Representative Schiff Has Seen Devin Nunes’ Evidence For Obama Surveillance – Here’s What He Said, theblaze.com. Democrat Schiff sang a different tune after he saw what Nunes saw.

FBI Got Court Order To Monitor Ex-Trump Adviser In Russia Probe: at reuters.com. More evidence of surveillance?

Obama, Comey Relied On Discredited Dossier To Obtain FISA Warrant On Trump Campaign, at zerohedge.com. Fake Dossier + Real Surveillance = Fake News.

You decide. Did surveillance happen?

TRADE INTERVENTION BY GOVERNMENT

Here’s What’s Behind The US-Canada Dairy Battle That Has Chuck Schumer Agreeing With Trump, at businessinsider.com. You know it is a bad policy when Schumer and Trump agree on trade. The answer is to let individuals in America trade with individuals in Canada. Agriculture in both countries is subsidized. That is where the problems starts.

Trump Slaps First Tariffs On Canadian Lumber, at money.cnn.com. Canadian lumber is cheaper. It is subsidized by Canadian taxpayers. So Canadian taxpayers are literally paying us to buy Canadian lumber at a lower price. Why shouldn’t we take advantage of their stupidity? Our answer is to raise our level of stupidity above theirs. We are going to raise the price of Canadian lumber higher by putting a tax (tariff) on it. What will be the next move on this checker board of stupidity?

How can Trump think on the one hand that lowering federal taxes will benefit the economy, and on the other hand think that increasing a tax on lumber will benefit the economy?

 

Must Reads For The Week 4/29/17

Posted April 29, 2017 by austrianaddict
Categories: Must Reads For The Week

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Fannie Introduces “Innovative Solutions” Allowing Student-Debt-Laden Millennials To Buy a Home, at zerohedge.com. Government and it’s agents are creating debt-serfs for life. Unless the government forgives existing student loan debt. Of course tax payers will have to pay back the forgiven student loans. Heads they win tails we lose.

Puerto Rico Takes First Steps Toward Bankruptcy-ish Filing, at zerohedge.com. At a certain point it’s impossible to pay back the debt you incurred. The whole world, governments and individuals (read above), are heading in this direction. Thank you central banks of the world.

Why “Nothing Matters”: Central Banks Have Bought A Record $1 Trillion In Assets In 2017, at zerohedge.com. This is what we’ve been talking about forever. You can’t counterfeit and borrow your way to prosperity. This is how you steal from the future.

Yale Grad Students ‘Hunger Strike’ Apparently Involves Eating When Hungry, at foxnews.com. A few observations about this article. 1) This reminds me of our school showing solidarity for the homeless by making their own shanty town. Students made their own shelters out of cardboard boxes. Except they moved the shanty town inside the gym because it was too cold outside. 2) A “hunger strike” involving eating is redefining the term “hunger strike”, Isn’t it? 3) The university administration said, ‘they understood the students concerns, but strongly urge that students not put their health at risk or encourage others to do so’. Administrators act like these college students are children. By definition “college students” are “adults”. We’re creating a generation of wimps!

Seattle Socialist Councilwomen Kshama Sawant Calls For Shutting Down Highways and Airport On May Day, at economicpolicyjournal.com. Seattle City Council unanimously passed a resolution proclaiming City workers have a right to request off on May 1, without retaliation, to attend May Day “celebrations” (mass protests). Councilwoman Sawant wants workers and protesters to shut down highways and airports on May Day. May Day was originally a European celebration of Spring. It has been taken over by Marxists, communists and socialists to promote their statist ideology under the guise of helping workers.

Why Politicians Win (And Workers Lose) Under Socialism, by Hans Hermann-Hoppe, at mises.org. Excerpt from the article: “Socialism leads to the politicization of society….If people want to improve their income under socialism they have to move toward a more highly valued position in the hierarchy of caretakers. That takes political talent.

Under Socialized Medicine, The State Owns You, by Justin Murray, at mises.org. Remember when Candidate Obama said in 2008, “we are five days away from fundamentally transforming America”? Well, here we are. Obamacare has moved us toward a government run single payer system. No bill the Republicans pass, short of repealing all of Obamacare, can change the fundamental transformation that has taken place. State bureaucrats will eventually have to ration healthcare. Which means “death panels”.

The Best History Of How We Got High Medical Prices and Obamacare, at economicpolicyjournal.com. This video explains Market prices vs. Government regulations.

Why We Have A 2nd Amendment: Venezuela Plans To give Firearms To Loyalists To Purge Growing Resistance, at zerohedge.com. Venezuela’s slow socialist march to the bottom is upon us. When socialism destroys a countries standard of living, the leaders only recourse, if you want to stay in power, is to literally kill the people their policies impoverished.

For The Left Socialism Denial Is Holocust Denial, by Robert Trancinski, at thefederalist.com. Socialist central planning has a track record of multiple millions of people being murdered (purged) when they don’t agree with the planners plans. Hitler’s Germany, Stalin’s Russia, Mao’s China, Pol Pot’s Cambodia, Castro’s Cuba to name a few. So lets keep going down this socialist central planning road and see if the result is different! No thanks. Take a stand! Now!

 

CARTOONS

From theburningplatform. (more here)

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Danielle DiMartino Booth: “The Fed Has Crippled Our Middle Class. Completely Gutted It Out”

Posted April 27, 2017 by austrianaddict
Categories: Econ. 201, Government and Politics

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Danielle DiMartino Booth was a Dallas Fed Staffer. Her knew book – Fed Up: An Insider’s Take On Why The Federal Reserve Is Bad For America”, gives incite into the incestuous intellectual relationship Fed policy makers have with each other. She calls it “group stink”.

Dimartino Booth is interviewed by Jeff Deist of the Mises Institute in the video below.

Here are some excerpts from the video.

Deist:The fed is almost exclusively staffed by academics, by phd’s. That wasn’t always the case. Could you summarize this impact of academization of the Fed for us?”

Booth: “I think the end result of all of this, which stands in direct contrast to the mandates of the original 1913 Act…to insure intellectual diversity and industrial diversity on the board and among the fed leadership. But is has created what I call “Group Stink”. It is the inability to decent, the inability to say no. Most people inside the Fed think the same. They don’t take the complications of a global and very modern financial system into account…… It is a lack of appreciation for anything that you and I would consider to be on planet earth. And it is what has made the Fed so very out of touch, and angered so many people. They might not know it’s the Fed. But they know something has gone very very wrong with their financial well-being and who is in control of their financial well-being.

4:50 – Deist: “A huge percentage of these Fed economists are Ivy League graduates. So despite all thier book learning, do you think people in the Fed have read Austrian stuff…..have they read Mises and Hayek. Or is this just completely outside of their orbit?

Booth: “You know I think it might have in the index of one of their economic text books. But I would bring up the word ‘malinvestment’ and their eyeballs would roll into the back of their head.

My Take From 2013: Thomas Sowell calls it “credentialed ignorance”. He is being rather nice. I would call it an example of intellectual inbreeding. These Federal Reserve policy makers have earned their economic credentials from some of the “best” Universities. That fact means we should stand in awe of them? Unfortunately I don’t give my respect to people with “status” that easily. I think respect is earned. What I have observed is these people live in a continual feed back loop. They all think pretty much the same way because they were taught by professors who all think the same way. They are hired to work for people in Government who think the same way. They are very rarely challenged to think outside of their small tunnel of knowledge protecting them from their mountain of ignorance. A mountain that would crash down on them if their tunnel wasn’t there.

Deist: “Do you think they really in their hearts, believe that …..monetary policy can create economic growth in and of itself?

Booth: “If they don’t believe it, they do a really good job of faking it…. Because it is clear that they do not understand the damage that’s been done to the social fabric of this country, to the culture, to have driven down multiple generations throats the idea that the only way to get growth is through the creation of debt. That is not the American was. It is not what capitalism is based on….. And it has crippled our middle class. Completely gutted it out. While at the same time corrupting all manner of institutions; corporations, banks, pensions you name it.”

6:58 – Deist: “Do you think that your average Fed economist would view what the Fed does in terms of interest rate targeting as something that’s not capitalism. That sounds like something out of a Soviet Politburo?

Booth: “I think that… part of the problem……where a disconnect is born that the Fed leaders …..have to be on the receiving end of the policies they make. It is like congress not having to deal with the worst vestiges of Obamacare. They have platinum health plans….. So I think a lot of the leaders at the Fed can delude themselves into thinking that they are doing good-by the people whose financial situations they shepherd, when in fact they are not. But to your other point, they all study the same basic schools of thought and that is what is broken inside of our higher learning institutions.

12:55 – Deist: “Do you think there is any way the Fed can really unwind all the $4 trillion treasury debt or worse on its balance sheet?

Booth: “Unfortunately I think markets have become addicted to the notion, if you will, that every single bond that central banks, world-wide, have purchased. Every single bond has been expunged from the supply forever. Otherwise I don’t think we would have interest rates where they are. I think that the Fed can talk tough about reducing the balance sheet if it wants to play politics and push the economy into recession. But they consider that 4.5 trillion dollars to be their fortress, their power base. The balance sheet has gone to their head.”

13:42 – Deist: “Yellen is in a tough spot…..If she wants to raise interest rates the debt service for Congress can double…..But without raising interest rates, how does she continue to create a market for US treasuries…….She’s in a ship saw.

Booth: “It is an absolute dilemma. But it is a corner into which the Fed has painted itself. There were people on the inside saying it’s a slippery slope if you go to zero. This will not end well. The market is not screaming for lower interest rates. The market is telling you there is a liquidity freeze going on and that it needs other things. If you go to zero, you’re going to introduce distortions and make it extremely difficult, one day, to ever exit. And guess what’s happened. It has become the Achilles heel not just of Janet Yellen and the Federal Reserve, but I would argue the Bank of Japan, Bank of China, The European Central Bank, Mario Draghi. This is a shared global phenomenon.

15:00 – Deist: “Who becomes the central banks banker? Is it some sort of IMF scenario if they can’t work their way out of this?

Booth: “Yes but who funds the IMF. Again there’s nothing elegant I can suggest to you as a way out of this situation……If you speak to the academics who have the same school of thought they will tell you that we will just have to monetize the debt away. that there will be a gentleman’s agreement between the developed countries that have lots of debt ad that we will just walk off into the sunset and everything will be fine. I consider that the last stop on the currency war train and the next stop to be an actual world war…….I don’t think countries that don’t have high debt levels would stand still for it.”

Link to her web site – dimartinobooth.com.

 

EXPLAINING THE FED AND INTEREST RATES.

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