Posted tagged ‘Fed’s QE Unwind’

Must Reads For The Week 10/7/18

October 7, 2018

 

ECONOMICS

Fed Chair Powell Hints He May Soon Crash The Market, at zerohedge.com. The Fed created the housing bubble with its printed money and below market interest rates. When their bubble crashed, their cure was the same medicine that caused the problem in the first place (pump more money into the system and zero percent interest rates).  The cure for a crash is to allow interest rates to be set by the market and quit printing money. Let the correction (recession) take place. Their policies didn’t allow the liquidation of the bubble activities to take place. Now they are attempting to slowly get rid of the accumulated bubble activities through incremental interest rate increases. They are walking a high wire and their safety net is to blame Trump for any crash. Read here: The Fed’s QE Unwind Reaches $285 Billion, at zerohedge.com.

US Gross National Debt Soars $1.27 Trillion In Fiscal 2018 hits $21.5 Trillion, at zerohedge.com. It doesn’t matter if the D’s or the R’s have control of the purse strings. The debt keeps going up. But the Federal Government couldn’t accumulate this amount of debt unless The Federal Reserve printed money to purchase US bonds. How can this possibly be paid back?

Mall Vacancies Hit 7 Year High As Rents Plunge, at zerohedge.com. Using printed money and low-interest rates caused too many Malls to be built. This is an example of a bubble activity. The laws of economics are trying to liquidate the malls which are not profitable. Will the Fed allow it to happen?

Austrians vs. Market Monetarists On The Housing Bubble, by Robert Murphy, at mises.org. Great article explaining how monetary pumping through artificially low-interest rates creates unsustainable bubbles that ultimately crash.

Silicon Valley Socialism, by Peter Klein, at mises.org.  Excerpt from the article: “Libertarians oppose regulation, but also oppose censorship and politically correct culling of opinion. Silicon Valley used to be a hotbed of libertarian thought, a place where innovation mattered more than government. Today, companies like Twitter and Facebook serve as de facto editors, banning users like Alex Jones for “wrong-think.” Google dominates search, but may steer search results. And Amazon serves nefarious clients like the NSA with its cloud infrastructure. And all of them employ plenty of lobbyists to avoid the kind of government anti-trust suit Microsoft faced nearly 20 years ago.

Surge In New York City Taxi Driver Suicides Has The City Talking, at zerohedge.com. Taxi driver suicides are up because the drivers purchase price of their taxi medallions has collapsed. Uber and Lyft are getting blamed for driving down the value of these medallions. But the reason the price of the medallions were so high in the first place is because NYC government put a limit on the number of medallions. Limiting the supply drove up the price of these medallions. The Government created a medallion bubble. If the free market would have been allowed to coordinate the supply of cabs with the demand of the riders there would be no suicide problem for taxi drivers. There would be no such thing as taxi medallions in the first place. Now Government wants to step in and help. How do you think that will work out?

Economics Everywhere, Politics Nowhere: Switzerland’s Six Pointers Towards Hope For Western Civilization, by Hunter Hastings, at centerforindividualism.org. Maybe we should look at Switzerland’s success as an example of what individual freedom, decentralized government, and free markets produce. Instead of looking at countries like Venezuela to see what socialism produces.

LEGAL &  POLITICAL STUFF

Democratic Staffer For Shelia Jackson Lee Arrested In GOP Doxing, zerohedge.com. An intern for Rep. Shelia Jackson Lee was arrested for releasing private and identifying information, including home addresses and phone numbers, of several Republican Senators on Wikipedia. He wanted them to be harassed for supporting Justice Kavanaugh appointment.

Blasey Ford’s FBI “Polygraph” Buddy Pressured Women From Mystery Groping Party To Change Story, at zerohedge.com. Was she trying to suborn perjury to get someone to corroborate Blasey Fords story?

Hordes Of Bussed-In Protesters Prepare For DC Disruption Ahead Of Kavanaugh Confirmation, at zerohedge.com. They don’t like being called a “rent a mob’. But if the shoe fits.

Make Them Scared’ Website Posts Uncorroborated Sexual Assault Claims Against Male Students, by Daniel Payne, at thecollegefix.com. People will do anything to advance their vision.

Writer From Colbert Show Reveals Left Wing Truth, at theburningplatform.com. Writer from Colbert show tweets: “Whatever happens, I’m just glad we ruined Brett Kavanaugh’s life.”

Creating A Suspect Society: The Scary Side Of The Technological Police State, by John Whitehead, at rutherford.org. The government has access to massive amounts of information on it’s citizens. We should all be concerned about this. Government bureaucrats can and will use this against you if it is necessary to advance their vision.

How A 1965 Supreme Court Ruling Explains The Partisan Battle Over Kavanaugh’s Confirmation, by Ira Stoll, at reason.com. Excerpt from the article: “One way to look at the situation of Brett Kavanaugh, the Supreme Court nominee awaiting a Senate vote, is as only the latest episode in the long story of Griswold v. Connecticut.”

HUMOR

Democrats Shudder At Idea Of Having To Legislate Through Congress Should Supreme Court Lean Right, at babylonbee.com.

Kamala Harris; “We Would Apply The Same Fair Standards To Any SCOTUS Nominee Whose Life We Were Trying To Destroy“, at babylonbee.com.

Senate On Lockdown After Receiving Credible Threat From Known Killers, at babylonbee.com.

 

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Political Cartoons by Michael Ramirez

Political Cartoons by Michael Ramirez

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Must Reads For The Week 4/7/18

April 9, 2018

Mr. Mark Robinson Addresses Greensboro City Council In Support Of The Second Amendment. No one could have made these points better.

Mr. Robinson Nails It. Read this quote from Atlas Shrugged by Ayn Rand: “Did you really think we want those laws observed?” said Dr. Ferris. “We want them to be broken. You’d better get it straight that it’s of a bunch of boy scouts you’re up against…..We’re after power ad we mean it….There’s no way to rule innocent men. The only power any government has is the power to crack down on criminals. Well, when there aren’t enough criminals one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws. Who wants a nation of law-abiding Citizens? What’s there in that for anyone? But just pass the kind of laws that can neither be observed nor enforced or objectively interpreted – and you create a nation of law-breakers – and then you cash in on guilt. Now that’s the system, Mr. Reardon, that’s the game, and once you understand it, you’ll be much easier to deal with.”

Ayn Rand: “The smallest minority on earth is the individual. Those who deny individual rights cannot claim to be defenders of minorities.”

London Mayor Unveils  New Stop-And Frisk Police Policy To Enforce City-Wide Knife Ban, at zerohedge.com. I didn’t think this was real. This could have been from The Onion. This story makes the above quote from Atlas Shrugged ring true. London Mayor Sidiq Kahn said: “….These statistics (37,443 knife offenses) show …… a government that has been desperately weak on crime for the last eight years, as well as weak on the causes of crime.” So what is the ’cause of crime”? Knives! Here is more from Mayor Sidiq Kahn: “Let me be clear – there is no reason to carry a knife. To anyone who does – they will be caught, and they will feel the full force of the law.

Michelle Obama Says Barack ‘Was Like The Good Parent’, Calls Trump ‘The Other Parent’. by William Cummings, at usatoday.com. The fact that progressive leftists, like Michelle, think of the President and the government as a parent means they think we are their children. The problem with this paternal relationship narrative, constructed by the progressive left, is that close to 50% of the citizenry believe it. Nothing could be further from the truth. You are responsible for yourself. Our Government was not founded to be responsible for you. When Government does something for you, it means that politicians and bureaucrats must first take from what other citizens have produced. Why? Because Government doesn’t produce anything. Individuals in the market produce wealth. Government consumes wealth.

DHS Has Detected Possible Cell Phone Surveillance In D.C. and Doesn’t Know Who Is Doing It, at washingtonpost.com. These StingRay devices have been used against U.S. citizens for years by local and federal law enforcement. So the Government is getting a taste of its own surveillance medicine. Good! Doesn’t taste so good. Does it?

Scott Pruitt Is Trump’s Biggest Asset, So The Left Wants Him Gone, by Mollie Hemingway, at thefederalist.com. Rolling back onerous EPA regulations has made Scott Pruitt a hero in my book. Which is why he is a villan in the eyes of the progressive left.

Illegal Immigrants Shielded From University Of California Out-Of-State Tuition Hike, at thecollegefix.com. Illegal Immigrants in California don’t have to pay out-of-state tuition. But out-of-state U.S. citizens do. This makes perfect sense. Illegals living in California vote in California elections. U.S. citizens living outside of California don’t vote in California elections.

THE ECONOMY

Fed’s QE-Unwind Proceeds Despite Stock Market Sell-Offs, at zerohedge.com. First of all the Fed should never have purchased U.S. T Bills and/or Mortgage Backed Securities. The Fed interfered with what the market would have decided these assets were worth. This interference has kept interest rates below what they would have been on the free market. The liquidation would have been painful but swift. All the Fed has done is allow more pain to be felt incrementally over time.

Subprime Auto Implosion In Full Effect As Lenders Start Dropping Like Flies, at zerohedge.com. This is the automobile businesses version of the popping of the 08 Housing bubble. Loaning money to people who can’t pay it back is a recipe for disaster.

Mall Vacancies At Six-Year High As Local Economies Stumble On Retail Slump, at zerohedge.com. Commercial real estate was over built thanks to easy money from the Fed. Under market interest rates and sound money this commercial bubble would not have gotten off the ground. Building all these malls was a waste of scarce resources. This land (resources), labor and capital could have been used in more productive activities. Artificially low interest rates funneled resources into non productive activities. On a similar note, Retail Real Estate Bubble Turns Manhattan Into A “Shopping Wasteland“, at zerohedge.com, Please. No more government help or bail outs. Government intervention is what caused the bubble in the first place. Allow the liquidation to happen. It will hurt, but it will put the economy on solid ground from which to build.

US Congressman Pushes Bill To Reinstate Gold Standard, at zerohedge.com. Our dollars purchasing power would increase if it was pegged to a certain weight in gold. Prices rising is not inflation. Printing money is inflation. Increased prices is the symptom of the money printing problem.

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