Posted tagged ‘zerohedge.com’

Must Reads For The Week 9/28/13

September 28, 2013
The pen is mightier than the sword...

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

Bob Shiller Warns “I Am Worried About Bubbles” In Housing, at zerohedge.com. A little late to the party. Read a previous post about this written in May,  A Housing Recovery, Or Just Another Bubble.

Students Faces Possible Year-Long Suspension From School For Playing With Toy Guns At Home, at benswann.com. When will we stand up and say enough of this insanity. They anti gun nuts are trying brainwash a whole generation of school age kids into thinking guns, even toy guns are evil, and that anyone who has a gun as an outcast.

Maryland Parent Arrested For Challenging Common Core, at benswann.com. How dare the peasants question the ruling aristocracy. As Government intervention grows, it needs more force to quell dissent, and intimidate dissenters.

Republicans Now Leading The Push To Tax The Internet, at tammybruce.com. When you look at their track record, do you really believe big Government establishment Republicans want to repeal Obamacare?

Cyprus-Style Wealth Confiscation Is Starting All Over The World, at zerohedge.com. The countries retirement savings is a huge pile of money that is being eyeballed by Government.

Obama Administration Committing $320 Million to aid Bankrupt Detroit, by Erika Johnsen, at hotair.com. This is a too big to fail city. Do you want to bet that California will be a too big to fail state?

The Late, Great Middle Class, by Victor Davis Hanson, at victorhanson.com, The number of people who receive transfer payments from the Government, whether administrators of the redistribution state of those who receive the payments, is growing , while the number of people funding the administrative state is shrinking.

Let The Counterfeiting Continue! The Fed Is Stuck In Their Feedback Loop!

September 26, 2013
English: The front book cover art for the book...

The Case Against the Fed by the author Murray Rothbard. (Photo credit: Wikipedia)

Peter Schiff does his impression of a salmon swimming against the current in the video below. Of all the “experts” in the video, he is the only one who understands the trap the Fed has snared itself in. Does he have the ability to predict the future? Don’t be awed by his crystal ball gazing because he understands the Austrian Business Cycle Theory (read and watch video here), and the other “experts” probably have never heard of it,or if they have they don’t understand it. The Fed has electronically printed massive amounts of counterfeit money, and has artificially kept interest rates below what they would be in an unhampered market. Scarce resources, labor, and capital, have been misdirected into activities that wouldn’t stand up under normal market conditions. The only thing that keeps these activities viable is the fact that the Fed continues to inject counterfeit money into the market. If the Fed quits electronically printing counterfeit money, there will be a liquidation of these nonproductive activities, similar to what happened in the 08 collapse. The Feds only political solution, which means a solution that saves their skin, is to keep counterfeiting so they don’t get blamed for the collapse. They don’t understand that stopping the counterfeiting is the only cure for the artificial inflationary boom they created when they injected billions of electrically counterfeited money into the economy in the first place.

In this post, Incremental Steps to The New Normal, I say the Fed hopes their taper, no taper, strategy will get them out of the mess of their own making. Here are a couple of quotes by Ludwig von Mises, and Murray Rothbard from an article below.

Ludwig Von Mises: “Credit expansion is the government’s’ foremost tool in their struggle against the free market. In their hands it is the magic wand designed to conjure away the scarcity of capital goods, to lower the rate of interest or to abolish it altogether, to finance lavish government spending, to expropriate the capitalists, to contrive everlasting booms, and to make everybody prosperous.”

Murray Rothbard: “What makes us rich is an abundance of goods, and what limits that abundance is a scarcity of resources: namely land, labor, and capital. Multiplying coin will not whisk these resources into being. We may feel rich for the moment, but clearly all we are doing is diluting the money supply.”

Here are some short articles and videos showing what a fine mess the Fed has gotten us into.

The Treasury Secretary On How Unstable US Government Finances Are, at economicpolicyjournal.com

Is Bernanke Looking For A New PR Director? at economicpolicyjournal.com

Albert Edwards Asks You To Spot The Difference, (There Isn’t One) at zerohedge.com

Druckenmiller Blasts, “The Biggest Redistribution of Wealth From The Poor To The Rich Ever“, zerohedge.com

The Fed’s Reflexive Catch 22 In One Sentence, at zerohedge.com

Five Years Of Hard Work By The Federal Reserve, at zerohedge.com

Bill Bonner Announces His Candidacy For The Federal Reserve Chairmanship, at economicpolicyjournal.com

David Stockman Warns ” ‘Calamity Janet’ Yellen Has No Clue” at zerohedge.com.

Baupost Summarizes Today’s “Investment Process” in 50 Words, at zerohedge.com

This is from, “Is Bernanke Looking For A New PR Director?”

Must Reads For The Week 8/3/13

August 2, 2013
The pen is mightier than the sword...

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

Giving Up Liberty for Security, at reason.com.  This article by Andrew Napolitano is one of the best about trading liberty for security.

The American Surveillance State Is Here:  How You Are Being Tracked, at economicpolicyjournal.com.  A sobering synopsis on some of the ways American citizens are being tracked.  Partnerships between government and business are always bad.

Think Your Password is Secure From the NSA?  Try This, at economicpolicyjournal.com.  I know my passwords aren’t great, but my memory is really bad.  This article includes links to help test your passwords.  (Hint: “password” is not a good password.)

What Is Overcriminalization? at libertypen.com.  This video explains the effects of the Federal government criminalizing so many activities.  Does anyone remember the old saying “Don’t make a Federal case out of this”?

The Government “Revises” 84 Years of Economic History This Week, at zerohedge.com.  The government is reshaping the intellectual battlefield by changing the definitions.  If you don’t like a particular problem, define it out of existence.

Milton Friedman:  Reflections on a Free Society, at libertypen.com.  This video by Milton Friedman is a great review of the uniqueness of the American ideals of liberty and free markets.  (I know, having two videos in “must reads for the week” is a bit of a contradiction.)

Milton Friedman on the Energy Crisis (and ObamaCare to Come), at masterresource.org.  A look at what is ahead for ObamaCare by looking at government intervention during the 70s energy crisis.  We must remember, past is prologue.

35 Facts To Scare A Baby Boomer, at zerohedge.com.  This article is, “Talkin’ ‘Bout My Generation”!  There are some really big and nasty chickens about to come home to roost.

The Entire Developed World Is On A Slippery Slope, at zerohedge.com.  This article is comprehensive (meaning long) and comments on just about everything regarding the state of our economy.  This is well worth the read.

Must Reads For The Week 7/6/13

July 6, 2013
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.

A Housing Recovery, Or Just Another Bubble?

May 29, 2013
English: Blowing large soap bubbles at sunset

Blowing large bubbles  (Photo credit: Wikipedia)

THE WEALTH EFFECT.

Since the housing bust and the corresponding economic downturn in 08, the Fed has been trying to create the “wealth effect”, using its double-edged sword of near zero interest rates and injecting counterfeit money into the banking system. I don’t know if they realize it or not but this double-edged sword is what caused the artificial housing boom which collapsed in 08.

The wealth effect starts from the Keynesian belief that consumption drives the economy. A vast majority of economists, politicians, and bureaucrats believe that if individuals feel wealthier because the value of the stocks and bonds they own are increasing, and the value of their house is also increasing, they will spend more. This increase in consumption [aggregate demand] they believe, is  what drives the economy. Unfortunately if the policies they are implementing are based on a fallacy, the policies will also be  fallacious.

WHAT DRIVES THE ECONOMY SAVINGS OR SPENDING?

The truth is savings, capital formation, and entrepreneurial activity is what drives the economy, not consumer spending. (more…)

Keynes Was Correct In 1919!

March 30, 2013
John Maynard Keynes

John Maynard Keynes (Photo credit: Steve Hunnisett)

When Keynes wrote in “The Economic Consequences of the Peace”,  (1919) “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” , little did he or we know how correct he was.

The Feds policy of counterfeiting money, and artificially lowering interest rates, created and grew the U.S.’s housing bubble from 2000 to 2007. Market forces tried to liquidate this misallocation of scarce resources (the bubble, which was the result of the Feds policies), starting in late 2007, but the Fed wouldn’t allow the correction to happen. It propped up a false bottom by (more…)