Posted tagged ‘Russia’

Must Reads For The Week 1/23/16

January 23, 2016


China Promises To Keep Intervening To “Look After” Stock Market “Investors”, Hurt “Speculators“, at So the cure for the Chinese stock market bust is Government intervention? Didn’t Government intervention cause the boom in the first place?  Government planners can’t stop reality. Economic forces are always in the process of correcting Government interventions.

The Rest Belt Goes Red – Glory Days Of China’s Steel Boom Leave Behind Abandoned Mills And Broken Lives, at Another example of a Government created bubble ending in a bust. Government centrally planning an economy doesn’t work. Ask the former Soviet Union.

The Three Musketeers Of Global Deflation – China, Russia, and Saudi Arabia, at We know about China’s problems, but over 65% of Russia’s and 45% of Saudi Arabia’s GDP comes from oil. Oil below $30 a barrel hurts these two countries. Economic forces can’t be stopped by Government central planners.

The Fragile Forty & How The Word Lost $17 Trillion In 6 Months, at Forty global stock indices are in bear markets, as over $17 trillion of equity has evaporated in the last six months. Central banks think the wealth effect created by their money printing will reignite the global economic engine. It hasn’t worked because economic forces eventually prevail.

This Is What The Death Of A Nation Looks Like; Venezuela Prepares for 720% Hyperinflation, at Bernie Sanders take note. This is what a socialist utopia looks like. Excerpt from the article: “ reality the Venezuela economy no longer exists, with all transactions now taking place in grey or black markets, and the government apparatus effectively operating in a vacuum.” Economic forces creating a black markets was inevitable.

Schlumberger Fires 10,000 As It Announces $10 Billion Stock Buy Back, at To keep your slumping stock price up, all you have to do is buy back your stock. Simple supply and demand. How do you finance this buyback. Either borrow low interest printed money like many companies have and are doing, or get rid of your biggest expense, your workers. Economic reality forces businesses to make decisions.

A Post Boom World, Auto Prices Will Fall,, by Patrick Barron, at Easy credit and sup-prime loans for cars will eventually end in a bust, like the housing bubble. Economic forces of supply and demand will bring the car market back in line.

And You Thought QE Was Over: The Fed Will Monetize Half Of This Years U.S. Treasury Issuance, at Over the next four years, the Federal Reserve is going to have to repurchase, with printed money, $1.1 trillion in maturing Government debt that it owns. The Federal Government can only grow to it’s present size if it is financed by it’s central bank, the Federal Reserve.


Why We Need A Recession, by Ronald-Peter Stoferle, at A recession is nothing more than economic forces correcting the misallocation of resources, labor, land and capital that was brought about by previous central bank money creation and easy credit.

As Ludwig von Mises said: “The return to monetary stability does not generate a crisis. It only brings to light the malinvestments and other mistakes that were made under the hallucination of the illusory prosperity created by the easy money.

And as F. A. Hayek said: “To combat a depression by a forced credit expansion, is akin to the attempt to fight an evil by its own causes; because we suffer from a misdirection of production, we want even more misdirection – an approach that necessarily leads to an even more serious crisis once the credit expansion comes to an end.


How Government Poisoned The People Of Flint, by John Counts, at Government doesn’t know what’s best.

Texas Adopts New York Values On Fantasy Football, Tho Bishop, at Government wants to protect you from illegal gambling. It’s better for you to buy legal state lottery tickets.


The Russian and Ukrainian Situation; Lets Take A Look

March 5, 2014

What can the U.S. and the President do, if anything, about the situation in the Ukraine? I view this situation through the lens of two things Thomas Sowell has said, 1) “Results observed at a given point in time may be a part of a process that stretches far back in time.”, and 2) “You can only choose from alternatives actually available.”


Where the Ukrainian situation sits today is the result of decisions, by millions of people, that stretch far back in time. The President inherited the situation that existed the day of his inauguration, but he is responsible for the decisions he has made since then. His decisions were made from alternatives that were actually available at the particular time of each decision. Every decision that is made today influences future decisions in many ways. A decision made today can expand or diminish future decisions that are available. If you choose to travel from L.A. to N.Y. by car you have many options along the way that a person who decided to take a plane doesn’t. One preson is limited to what he can choose to do while on the plane like read, sleep, etc, while the person who drove can choose when to stop, what and where to eat, and even to change his mind and go somewhere else instead of N.Y.

Decisions aren’t made in a vacuum, or as I like to say, other people get to vote on how they will react to your decision. You don’t get to determine what other people decide to do after you make a decision, unless you use force to restrain their response.


Whether you are on the interventionist or non interventionist end of the spectrum, before you make up your mind about the Ukrainian situation, read these articles because the situation is more complex, from many angles, than it might seem. One thing is for sure, the U.S. can’t reset the clock and start over. The U.S. has to make a decision based on the reality that exists today, it can’t make a decision based on a utopian reality which exists on each end of the interventionist and non interventionist world views.

The truth is, the U.S., is stuck with bad or worse choices that politicians and bureaucrats from both ends of the spectrum have led us to.


A 35-Step Guide To Understanding Why Russia Decided To Follow The Olympics With A War, by Miriam Berger and Julia Pugachevsky, at This is an article that takes you through the time line of this conflict.

The Stepping Stone To The Ukraine Situation, by Victor Davis Hanson, at This article talks about how the Presidents actions since he was inaugurated have been seen as weakness by Leaders like Putin. Didn’t President Kennedy say, “We dare not tempt them with weakness”.

The Back Story To The Russia – Ukraine Confrontation, by George Washington, at There is a lot of information and opinion to digest in this article. Did the U.S. push Russia

Lugar and Obama Urge Destruction Of Conventional Weapon Stockpiles, at In 2005 President Obama and Senator Lugar visited the Ukraine to push for the destruction of stockpiles of military supplies. Here is a quote from Obama, “Vast stocks of conventional munitions and military supplies have accumulated in Ukraine…….” Obama said. “We need to eliminate these stockpiles for the safety of the Ukrainian people and people around world, by keeping them out of conflicts around the world.” Is he saying in order to keep Ukraine out of conflicts they need to destroy their weapons? This sounds like the gun control debate, disarm yourself so you don’t provoke the bad guys.

Russia’s 25,000-Troop Allowance and Other Facts You May Not Know About Crimea, at Russia Today talks about the Partition Treaty signed by Russia and Ukraine in 1999 to determine military bases and the Black Sea Fleet in the Crimea. Read about Black Sea Fleet here, at

An American Special Ops Veteran On The Ground In Ukraine Speaks Out, at Great background of life in the Ukraine from the perspective of a Spec Ops guy on the ground.