Financial Markets Move When The Puppet Master Speaks.

Posted July 15, 2013 by austrianaddict
Categories: Econ. 201

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♫Puppet on a String♫

♫Puppet on a String♫ (Photo credit: trawets1)

FINANCIAL MARKET MINIPULATION

The stock and bond markets were sent soaring last week when Fed chairman Ben Bernanke said more Fed stimulus was needed (read here). Three weeks ago Mr. Bernanke hinted that the Fed might start to taper its money injections and the stock and bond markets had a sell off. In an article I wrote on July 1, titled Incremental Steps To The New Normal, I said, “The sell off in the stock and bond market, the week of June 20th, at a hint by Ben Bernanke that he might ease out of Quantitative Easing in the not too distant or distant future, is evidence that the financial markets are a bubble activity blown up by the Fed’s double edge sword of printing counterfeit money and artificially lowering interest rates. We witnessed more evidence the following week when first Quarter GDP numbers were revised down. This started a rally in the stock market because investors know that if there are bad aggregate numbers, the Fed will keep electronically printing money…” . It’s not difficult to predict how investors will react to economic data, because they understand what the Fed will do in response to this data. Read the rest of this post »

Must Reads For The Week 7/13/13

Posted July 13, 2013 by austrianaddict
Categories: Must Reads For The Week

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ARE WE MOVING TOWARD LIBERTY OR TYRANNY?  THE MIDDLE GROUND IS VERY CHAOTIC.

Fourth Of July: Up Against The State, at economicpolicyjournal.com. Power corrupts from the federal to the local level. These cops know they are violating this guys constitutional rights (on independence day no less), they admit as much on the video.

Third Amendment Violated? Police Invade Family’s Home For Use During Swat Call, Arrest Two For Obstruction When They Refuse, by Becket Adams, at theblaze.com. More abuse of power by local Government officials.

College Girls, Bottled Water, And The Emerging American Police State, by John Whitehead, at opednews.com. This type of enforcement activity will become more prominent as Government tries to micro manage society by passing more laws. You probably break some law everyday, and you don’t even know it.

A Lot Of People Are Interested In USDA Disaster Plans For Rabbits, by Bob McCarty, at bobmccarty.com. Can this really be true? Magicians are required to have disaster plans to evacuate their rabbits in case of a disaster. I think we need more regulations!

So Much For Peak Oil, at economicpolicyjournal.com. Just think how much we would produce domestically if the Administration would open federal lands and allow more off shore drilling? Would this create jobs? Would this drive the price of oil lower because of the increased supply?

Summer Violence Creates Need For Blood Donations At South Side Hospital, by Wendell Hutson, at dnainfo.com. The thing that struck me when I read this was how the shootings seemed to be so trivial.

Ohio School District OK’s Concealed Carry For Teachers, by Zenon Evans, at reason.com, and Illinois Becomes Final State To Embrace Concealed Carry, at latimes.com. Two articles that show that at some point logic trumps emotion.

How D.C. Police Can Seize Your Car And Hold It indefinitely, by Andrea Noble, at washingtontimes.com. This is what happens when you give law enforcement power. In the military it’s called mission creep. Those with the power will always wield it arbitrarily.

Did Justice Department Support Anti-Zimmerman Protests After Martin Shooting? at foxnews.com. This is why I hate politics in general and  bureaucrats and politicians in particular. They always stick their noses in places that angels dare to tread, creating a situation that becomes a complete cluster foxtrot.

Observations From The Margin

Posted July 10, 2013 by austrianaddict
Categories: Observations From The Margin

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Observation Tower

-The Affordable Care Act [Obama Care], was signed into law on March 23, 2010, its implementation was delayed until 2014 so the results wouldn’t affect the 2012 Presidential election. Now they are delaying the implementation until 2015. Does anyone want to take a guess what happens in 2014 that would make them want to delay this for a year? I’ve got an idea, let’s have an election every year so the implementation of Obama Care will be on a permanent one year delay.

-Intelligence Director James Clapper admits lying under oath, but he says he is sorry. This is like the ever popular get out of jail free card, “I take full responsibility for………” No one is ever held accountable for their actions even though they take responsibility for their actions. The ruling elite; which consists of politicians, bureaucrats, and Government employees, are never held to the same standard when they break the law compared to what we citizens deal with everyday from a basic speeding ticket at the local levels, to IRS regulations at the Federal level. Two sets of rules exist in this country, one set for the ruling aristocracy and another set for the serfs. At some point people will not comply.

-The Obama administration is proposing changes in The Freedom on Information Act . These changes would allow federal agencies to lie about the information being sought. When you control information you control individuals. I’m surprised the administration would even worry about changing the rules, they have a track record of not abiding by rules in the first place. If no one holds them responsible for breaking the law, they will keep doing it, just like the dog that isn’t disciplined for peeing on your carpet, will keep peeing on the carpet.

-In all the scandals from Fast and Furious, the IRS targeting tea party groups, the confiscating of reporters electronic communications, the NSA data mining, the Benghazi fiasco, and many others, the administration says these were the fault of low-level employees, and the administration didn’t know anything about what they were doing. If they don’t have enough knowledge to control the Government apparatus, how is it possible for them to have enough knowledge to control the free market. The amount of knowledge needed to even begin to understand what is going on in the free market is exponentially bigger than the amount of knowledge needed to control Government.

-Our favorite  rock stars played in front of packed houses back in the day, now thirty years later they are playing in small clubs for hundreds of people. President Obama spoke in front of 250,000 in Germany before his first election, he was lucky to get  20 thousand two weeks ago for a speech at the same venue. It’s only been five years, either the presidency prematurely ages you, or the thrill is gone.

-Do people who condemn the U.S. for force feeding prisoners who are on hunger strikes at Guantanamo Bay realize the alternative is letting them starve to death?

-The President lectured on constitutional law at the University of Chicago Law School from ’92 to ’04. After watching the way he has used the constitution as toilet paper or a cape, I hope his students either got F’s or withdrew from the class.

Some Humor To Take The Edge Off

Posted July 9, 2013 by austrianaddict
Categories: Miscellaneous

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Here are some cartoons I found on The Burning Platform, click for more.

134245 600 Obama and the Constitution cartoons

THE DAILY SHOW JOHN OLIVER HAS SOME FUN WITH THE NSA SCANDAL, AT THE PRESIDENTS EXPENSE.

Some Heavy Lifting To Start The Week.

Posted July 8, 2013 by austrianaddict
Categories: Econ. 201

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The Ponzi Scheme

The Ponzi Scheme (Photo credit: Wikipedia)

These are two articles each one having a video in which many of the economic realities we talk about here are discussed in slightly different ways. The first is an article titled Opportunity Squandered: We Blew It, by Charles Hugh Smith, at oftwominds.com, and the other is titled,You Are In The Ponzi Scheme Whether You Realize It Or Not, by Monty Pelerin’s World, at ecoomicnoise.com.

I know your  most precious resource is time, and each of you only has a certain amount of time set aside  to read and be kept up to date on what is going on. Set some time aside to read the articles, but more importantly listen to the interviews. One is CHS talking with Gordon T. Long, and the second is an interview with John Robino and Gordon T. Long. Both talk about how the printing of counterfeit money, combined with artificially low-interest rates starts in a direction that F.A. Hayek said “leads to serfdom and poverty”. Read the rest of this post »

Must Reads For The Week 7/6/13

Posted July 6, 2013 by austrianaddict
Categories: Must Reads For The Week

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The pen is mightier than the sword...

The pen is mightier than the sword… (Photo credit: mbshane)

Presenting Inflation…, at zerohedge.com. The Feds counterfeit money is leaking out of the financial sector and into the rest of the economy.

The Benghazi Diary, A Hero Ambassador’s Final Thoughts, by Jack Murphy and Brandon Webb, at sofrep.com. Steven’s diary sheds light on a cover up.

Don’t Mess With A Man’s Family: Armed Texas Dad Takes On Three Armed Intruders, by Jason Howerton, at theblaze.com. Mr. Ortiz saved the tax payers money that would have been used on the trial, and incarceration of the perps. I think he should get a tax credit for a percentage of what was saved. Lets incentivize this behaviour, so it can disincentivize the perps behaviour.

Rep Tammy Duckworth Eviscerates Man Using H.S. Football Injury For Government Contracts, at egbertowillies.com. Iraq war veteran and double amputee Rep. Tammy Duckworth,crushes this federal contractor for using a H.S. football injury to get a service disabled status in order to get federal contracts. This guy can’t turn his man card, he never had one!

Egypt What A Shame, by Chris Rossini, at economicpolicyjournal.com. Individual liberty can’t exist in the same place that Government power exists. The people of Egypt are trying to gain freedom through the very entity that is keeping them from being free. Dismantling Government power is what makes the individual more free.

Up In My Grill: 4th Of July Rap, by Remy & MeredIth Bragg, at reason.com. You probably broke some Government regulation at your 4th of July celebration.

Rahmaland Fireworks: 34 people shot on July 4th, at economicpolicyjournal.com. Chicago has some of the strictest gun control laws. I know I know; ” just think what the numbers would be if they didn’t have strict gun control laws!”

A Yiddish Lesson From Paul Krugman, at economicpolicyjournal.com. “Man plans and God laughs”.

Obamacare Strikes: Part-Time Jobs Surge, Full Time Jobs Plunge, at zerohedge.com. When Government creates incentives to hire part-time employees, part-time employment will rise. You don’t need a crystal ball to see this.

The Dirty Little Secret About Holiday Traffic Ticketing, by Gary Biller, at washingtimes.com. Interesting article showing evidence that speed limit laws have nothing to do with safety, and everything to do with funding.

Independence Day Follow Up

Posted July 5, 2013 by austrianaddict
Categories: Miscellaneous

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I saw these cartoons at Monty Pelerin’s World, at economicnoise.com. They make you laugh on the one hand, and soberly contemplate where we are on the other.

independenceday

libert02_600

THE NEXT AMERICAN REVOLUTION

This article titled The Next American Revolution by Charles Hugh Smith at oftwominds.com, is a view into the future from his crow’s nest. CHS always makes you think. Here are a few excerpts from the article.

“The next American Revolution will not be an event, it will be a process. We naturally turn to the past for templates of the future, but history has a way of remaining remarkably unpredictable.” Read the rest of this post »

July 4th, Declaring Independence From Tyranny

Posted July 4, 2013 by austrianaddict
Categories: Miscellaneous

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English: This is a high-resolution image of th...

Declaration of Independence (article (Photo credit: Wikipedia)

JEFFERSON’S  GEM

On July 4th 1776 congress adopted the Declaration of thirteen United States of America for their Independence from the tyranny of The King. I haven’t read this document enough over the years. I’ve taken for granted that I understand the meaning of the words Jefferson penned, but my most recent reading has revealed the depth of meaning  he crammed into relatively few words. I had similar thoughts when I reread the Declaration of Independence as I did when I read The Road To Serfdom by Hayek for the first time in 1993. Those thoughts were, “Oh my God, he’s writing about today”. Before we look at some of the words in the declaration lets look at what it was like in Colonial America. Read the rest of this post »

Incremental Steps To The New Normal

Posted July 1, 2013 by austrianaddict
Categories: Econ. 201

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A bubble.BERNANKE SPEAKS, THE STOCK MARKET REACTS

The sell off in the stock and bond market, the week of June 20th, at a hint by Ben Bernanke that he might ease out of Quantitative Easing in the not too distant or distant future, is evidence that the financial markets are a bubble activity blown up by the Fed’s double edge sword of printing counterfeit money and artificially lowering interest rates. We witnessed more evidence the following week when first Quarter GDP numbers were revised down. This started a rally in the stock market because investors know that if there are bad aggregate numbers, the Fed will keep electronically printing money. Money going into the market is what drives the overall market upward. Understanding how these two sides of the Fed’s interventionist coin creates the artificial prosperity that eventually has to be liquidated, is very difficult because of the abstract nature of what is involved. We have been trying to explain these abstract concepts, in a variety of ways in order Read the rest of this post »

Must Reads For The Week 6/29/13

Posted June 29, 2013 by austrianaddict
Categories: Must Reads For The Week

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The pen is mightier than the sword...

The pen is mightier than the sword… (Photo credit: mbshane)

Guess Where The Country’s Highest Incomes Are? at economicpolicyjournal.com. These politicians and bureaucrats have the highest incomes and yet produce nothing of value in exchange for their income. We are forced to pay them for interfering with our productive activities, which makes it harder for our activities to remain productive.

Greenwald Smackdown Of NBC’s David Gregory, at economicpolicyjournal.com. Short video of Greenwald responding to charges that he aided and abetted Edward Snowden.

The Biggest Ponzi Scheme In The History Of The World, by Michael Snyder of theeconomiccollapseblog.com, care of zerohedge.com. The incestuous relationship between the Government and the Federal Reserve in a parable.

Recycling Anecdote at mungowitzend.blogspot.com. How do you treat the recycling police? With laughter and ridicule.

Know Your Rights When Dealing With Police, by Julie Borowski, at townhall.com. I found this on libertypenblog.blogspot.com. Knowing your rights when dealing with the police is a powerful tool in preventing abuses of power.

Elke’s Warning, is a youtube video I saw on tammybruce.com. The most interesting conversations you can have are with people who grew up behind the iron curtain. Watching this reminds me of how I felt the first time I read “The Road To Serfdom” by Hayek.

NSA’s Criminal Activity, at benswann.com. Ben Swann does a great job of telling the unvarnished truth.