Posted tagged ‘The Feds QE Unwind’

Must Reads For The Week 9/8/18

September 11, 2018

NYT Flashback: “If Donald Trump Targets Journalists, Thank Obama”, at zerohedge.com. Just as Obama set the stage for the executive actions by the next President. He also set a precedent for how to treat the press. The press didn’t worry about the use of executive power by Obama because they shared his world view. The press doesn’t like Trumps use of executive power because his world view doesn’t align with theirs. Here is an example of DOJ abuse of power under Obama.  Sharyl Attkisson computer hacked by DOJ . 

An Uber-Like Service Might Help escape Britain’s Socialist Health System, by George Pickering, at mises.org. The long wait times by patients in the British government healthcare system has produced a situation that allows new technologies to be used to see doctors sooner. In a socialist economic system, waiting lines are how scarce resources are rationed. But the passage of time allowed something new to come into existence that shortens the waiting (rationing) lines.

Criminalizing Childhood: School Safety Measures Aren’t Making Students Any Safer, at zerohedge.com. Excerpt from the article: “From the moment a child enters public schools to the moment he or she graduates, they will be exposed to a steady diet of draconian zero tolerance policies that criminalize childish behavior, overreaching anti-bullying statutes that criminalize speech, school resource officers (police) tasked with disciplining and/or arresting so-called “disorderly” students, standardized testing that emphasizes rote answers over critical thinking, politically correct mindsets that teach young people to censor themselves and those around them, and extensive biometric and surveillance systems that, coupled with the rest, acclimate young people to a world in which they have no freedom of thought, speech or movement.”

Camile Paglia On The Indispensability Of Men, Who Do The Dangerous, Dirty Work That Makes Our Economy Possible, by Mark J. Perry, at carpediemblog. Here is an excerpt from Camile Paglia’s article titled: It’s a Man’s World, and It Always Will Be” (subtitled: The modern economy is a male epic, in which women have found a productive role — but women were not its author):”

“Men are absolutely indispensable right now, invisible as it is to most feminists, who seem blind to the infrastructure that makes their own work lives possible. It is overwhelmingly men who do the dirty, dangerous work………Every day along the Delaware River in Philadelphia, one can watch the passage of vast oil tankers and towering cargo ships arriving from all over the world. These stately colossi are loaded, steered and off-loaded by men. The modern economy, with its vast production and distribution network, is a male epic, in which women have found a productive role – but women were not its author. Surely, modern women are strong enough now to give credit where credit is due!”

Milking Taxpayers, by Dan Mitchell, at danieljmitchell.wordpress.com. Consumers and taxpayers are the ones who pay the cost of Government subsidies for the dairy industry.

Richard Epstein On The Intellectual Poverty And Intellectual Self-Denial Of The ‘New Socialists’ by Mark J. Perry, at carpediemblog. Excerpt from the article by Richard Epstein: “The New Socialists try of course to distance themselves from the glaring failures of the Old Socialists, who suffered from two incurable vices. First, they ran the economies of such places as Cuba, Venezuela, the Soviet Union, and virtually all of Eastern Europe into the ground. Second they turned these states into one-party dictatorships governed by police brutality, forced imprisonment for political offenses, and other human rights abuses………The New Socialists in the United States live in a world of intellectual self-denial. They think that they can control the distribution of all the good things in life without undermining the economic and social institutions needed for the creation of that wealth in the first place.

Stealing By Government, by Dan Mitchell, at danieljmitchell.wordpress.com. Civil asset forfeiture is theft of private property by the state without due process.

FEDERAL RESERVE MISCHIEF

Central Banks Enrich A Select Few At The Expense Of Many, by Thorsten Polleit, at mises.org. Central Banks were created for the purpose of growing Government. Governments can only tax so much out of the private economy before people revolt. Printing money is a stealthier way for governments to procure funds for expansion.

The Fed’s QE Unwind Hits $250 Billion, at zerohedge.com. This slow unwind is hiding the theft that took place by the previous inflation of the money supply.

Can Deflation Fix The Damage Done By Inflation?, by Frank Shostak, at mises.org. This is a must read of the must reads. When the Fed lowers interest rates, below what they would be in a free market, and increases the money supply (counterfeits money), it starts the economy down the road of wasting scarce resources. Here is an excerpt from the article: “It is argued that because we do not exactly know the state of the economy at any point in time, it is quite possible that the central bank’s loose stance could be excessively loose which may result in a so-called overheating. This means that the loose policy will push the economy strongly above the trajectory of a stable non-inflationary growth.”

“Conversely, a tighter stance could be excessively tight thereby risking to plunge the economy below the trajectory of stable non-inflationary economic growth — a severe economic slump.”

“The view that the economy could be seen as a space ship is a misleading metaphor, since the economy is about human beings that use their means to achieve various goals. Given that economy is about human beings, no central authority can replace the free unhampered market that enables individuals achieving their goals in their best possible way.”

SATIRE OR REAL?

Which of these really happened?

Kavanaugh Accused Of Being ‘Too Judgemental’ To Be Effective Judge, at babylonbee.com.

Democrats Demand Kavanaugh Submit To DNA Test To Prove He’s Not Actually Hitler, at babylonbee.com.

PETA Finally Frees Animal Crackers From Their Cages, at barstoolsports.com.

It’s the PETA article. There must not be much real animal abuse going on if PETA put time into freeing these cookie animals from their cages. I was worried that the poor Zebra was going to get eaten by the Lion because a cage no longer separates them. Until I remembered that, cage or no cage, all these animals are going to get eaten by me.

CARTOONS

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Political Cartoons by Pat Cross

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Must Reads For The Week 2/10/18

February 11, 2018

 

THE FED AND THE STOCK MARKET

Is The 9-Year Dead Cat Bounce Finally Ending? By Charles Hugh Smith, at oftwominds.com. The Feds double edged sword of artificially low interest rates and money printing have created bubbles in the financial markets. No one knows what is and is not a bubble activity. We just know printed money went into the financial markets. As Jim Grant has said, “It is money in search of mischief”. In other words, artificially low interest rates and printed money misallocates scarce resources to activities that would not exist under free market interest rates and stable money.

When the Fed raises interest rates and takes money out of the system by unwinding its balance sheet, the bubble activities will be revealed. Could this be what is happening to the stock market now. The Fed’s QE Unwind Accelerates Sharply, at zerohedge.com. The Fed created the financial bubble in the first lace and is now trying to figure out how to gradually let the air out, instead of popping it. They hope a stronger economy can help release the air slowly over time.

Former Fed Chairman Alan Greenspan Warns: “We Have A Stock Market Bubble, at zerohedge.com. No kidding! You helped cause it by lowering interest rates and printing money.

The worlds Central Banks Holding Steady, But Promise More Rate Hikes, at mises.org. I scratch my head when I hear central banks talk about price inflation without mentioning that their policies are the cause of inflation. Prices will go up and down because of supply and demand. But this is not inflation. Money printing is the definition of inflation.

DEBT

Pentagon Auditor Can’t Account For $800 Million In Spending, at zerohedge.com. No shock here. There is waste, theft and fraud everywhere tax payer money is spent.

Credit Card, Student and Auto Debt All Hit Record Highs In December, at zerohedge.com. Borrowing money means you bring your future consumption into the present. How much more do you have to produce in order to be able to pay off the interest and inflated cost of present consumption and to also be able to consume when the future becomes the present?

Republican Fiscal Hawks Revolt Against Budget Deal, Suspension Of Debt Ceiling, at zerohedge.com. How can the Republicans in Congress say they are for small government when they pass a budget that increases the yearly budget debt by $400 billion? Only fiscally responsible Republicans stood against this budget. With the Fed saying they are going to increase interest rates, the $20 plus trillion national could increase exponentially.

Student-Loan Crisis Worsens; Looming Defaults Strain Govt Bailout Program, at zerohedge.com. Since the Government took over student loans it has become a bubble activity. The rise in the cost of college tuition is being caused by borrowed money being used to pay for college. When students get out of college and have more debt than income there will be defaults. These defaults will eventually be paid by you and me the tax payer. What a scam!

The Cure, at ericpetersautos.com. Excerpt from the article: “Imagine how different cars would be if people had to pay for them – as opposed to financing them. Debt – which is what financing is – allows people to buy more car than they can afford. It hides the actual cost of the car. It enables the government to impose costs in the forms of mandates which would otherwise be unaffordable – and so, objectionable. People would complain in the one language the government understands. They would not comply – because they could not buy.”

OTHER STUFF

We Say Peoplekind”: Trudeau Mansplains To woman That “Mankind” Is Not an Appropriate Term, at zerohedge.com. This is the the idiocy of political correctness. Everyone with a brain knows what mankind means.

Lawmakers Want To Ban Tide-Pods From Looking So Delicious…. Seriously, at zerohedge.com. Who in their right mind would think eating laundry pods is a good idea? What kind of ego does it take to think it is your job to protect these idiots from themselves?

The Greatest Public Health Mistake Of The 20th Century, at mercola.com. We have been told for decades to stay out of the sun or wear sunscreen when you have to be out in it. But staying out of the sun causes a vitamin D deficiency. The study says that vitamin D may prevent 30 deaths for each death caused by skin cancer. Thomas Sowell is right again when he said, “There are no solutions in life. There are only trade offs.” We were sold a bill of goods on a bad trade off.

The Fragile Generation, at zerohedge.com. Excerpt from the article: “Bad policy and paranoid parenting are making kids too safe to succeed…..This generation of kids must be protected like none other. They can’t use tools, they can’t play on grass, and they certainly can’t be expected to work through a spat with a friend.”