Category Archives: Economy

Stock Exchange A Laughing Stock

Debt, Economy, Federal Reserve Bank, Inflation

“An increase in the price of an item is not the same as an appreciation in its value.” Consequently, it’s hard to understand the happy hyperventilating over the Dow having broken through 17,000 for the first time. Keeping the printing presses roaring, as the Federal Reserve has done, will result in a rise in prices, stocks included. Homes too.

A cleareyed look ahead to “a very serious bond-market crisis” is more appropriate.

Warns David Stockman, author The Great Deformation: The Corruption of Capitalism in America:

If you allow a $17 trillion debt to be financed at $250 billion a year when it really should be $700 billion or $800 billion under normal interest rates, then politicians are gonna take the easy way out. They’re not going to fall on the sword. They’re not going to lay out the real painful choices to the public. They’re not going to vote against the squeaky wheels and the powerful constituents when the Fed is printing the money and doing the job of financing the debt for them.
So I think that’s where the crisis comes. When the Fed finally reaches the point where the entire monetary system is threatened – and I think it would be if it had continued at $85 billion a month – we come to the juncture where the Fed can no longer keep its big fat thumb in the market buying up the monthly and weekly issue of Treasury debt. At that point, we are going to see the rubber meet the road, so to speak. We’re gonna have the day of reckoning, because there isn’t demand out in the real marketplace among real investors for massive amounts of additional Treasury debt at these sub-economic interest rates. And when interest rates normalize, Katy, bar the door, because the carry cost on the federal debt— which will by then be $20 trillion— will soar by half a trillion a year. The politicians will finally panic, but I’m afraid by then it might be too late—- that we’ll be in a very serious bond-market crisis.


like tweet google+ recommend Print Friendlyprint

Brownian Motion At The Border

Economy, IMMIGRATION, Law, Left-Liberalism, libertarianism

I suppose the Wall Street Journal and other “lite libertarian” sources will point to the Brownian Motion at the Mexican border to make the case that illegal immigration creates jobs. Have not sandwich makers, baby formula dispensers, gamers, recreation- and welfare providers, psychologists, lawyers, tattoo-removers, rubbish collectors, vaccinators—have they not all rushed to the border to cater to the invaders? Ergo, as Erik Rush would put it, quod erat demonstrandum; Q.E.D.; case proven.

Blessed are the cheese makers at the border too … Don’t want to forget them.

By the way, it is all a big parasitical, welfare expansion.

Via National Review:

… Border Patrol officials have taken responsibility for the well-being of the illegal immigrants, providing sandwiches and water three times a day. “You would not believe how many sandwiches I’ve made over the course of my career,” Cabrera says. In Nogales, U.S. Customs and Border Protection officials have brought in vendors to provide food, while FEMA has sought to provide counseling and recreational activities, according to FoxNews.com. Cueto says the children are being vaccinated before being turned over to Immigration and Customs Enforcement officials. ICE is then transporting them to military bases in California, Oklahoma, and San Antonio, Texas, according to CBS Houston.


like tweet google+ recommend Print Friendlyprint

Statists Collude In Sundering Honourable Swiss Tradition

Business, Economy, English, EU, Europe, Law, Taxation, The State

If the law applied equally to the state and not only to its subjects, the colluding governments—a cartel, really—participating in the concerted action against Switzerland would be prosecuted under anti-trust laws, for the creation of a global tax monopoly.

In 2010, it was reported that the US was putting pressure on Switzerland to end that country’s venerated tradition of “helping private property owners shield their assets against legalized theft (taxation).” Uncle Sam was meddling in the financial sector of an ostensibly sovereign state, siccing its legal footsoldiers on UBS AG, a Zurich and Basel-based financial establishment (and its American clients), because of tax evasion.

When they are not bailing out failed financial institutions, our statists are bankrupting viable ones.

Fast forward to 2014, and it transpires that the statists have succeeded—and not only semantically: banking privacy is now referred to as “tax secrecy.”

No secrets should be kept from The State.

At a ministerial meeting in Paris on Tuesday, Switzerland agreed to sign up to a new global standard on automatic information exchange, representing a decisive break with its centuries-old commitment to protecting the privacy of banking clients.
The move is a big step forward for governments that have mounted a concerted attack on evasion in the wake of the global financial crisis and a series of tax scandals.
Swiss co-operation is pivotal to the struggle to prise open taxpayers’ hidden accounts because of its long tradition of bank secrecy and its dominant wealth management sector, which has $2.2tn of offshore assets.
The declaration, which was signed at the Organisation for Economic Co-operation and Development in Paris, requires countries to collect and exchange information on bank accounts and the beneficial ownership of companies and other legal structures such as trusts. …

“European governments expect billions of euros to be repatriated as a result of the evasion crackdown.” “Repatriate” is yet another bit of semantic casuistry intended to whitewash these governments’ global property grab.

MORE Via FT.

Back to the post’s opening salvo: Sadly, even if a fair adjudicator were able to prosecute the colluding cartel on the grounds stated—the taxpayers would end up paying for the crimes.


like tweet google+ recommend Print Friendlyprint

A Professor Who Doesn’t Pander

Economy, Education, English, Internet, Journalism

Still a tad mild for my liking, but far better than any “critique” provided in mainstream media is Tyler Cowen’s assessment of Nate Silver’s “data-driven journalism.” In “Nate Silver’s 538 is up and running,” Cowen, professor of economics at George Mason University, writes wryly:

… to me these are “tweener” pieces, too superficial for smart and informed readers, yet on topics which are too abstruse for the more casual readers. … Here is Silver’s introductory essay as to what they are about. It is too sprawling and evinces a greater affiliation to rigor with data analysis than to rigor with philosophy of science or for that matter rigor with rhetoric.

In Cowen we may have a rare professor who doesn’t pander to annoying Millennials.


like tweet google+ recommend Print Friendlyprint

Homo Economicus Disagrees With White-House Looter

Barack Obama, Economy, Healthcare

It’s pretty straightforward to the generic Homo Economicus, but not to “The Ass With Ears And His Ali Baba Thieves.” On a day the latter put out their 16 sweet reasons to sign up for Obamacare, other more clear-thinking individuals came up with a much more intuitive list of 16 not-so-sweet reasons not to, among them:

Privacy concerns
Unwanted coverage
Can’t keep your doctor
The young do not need it
Glitches galore
Government overreach
Prohibitive costs
Employers cutting jobs

MORE:


like tweet google+ recommend Print Friendlyprint

Are America’s Democracy Alinskyites In Russia’s Backyard?

Economy, John McCain, Military, Neoconservatism, Russia

In absolute numbers, Russia’s military spending is dwarfed by that of the United States. This spending, moreover, is a smidgen of what it was during its “tortured past.” As a percentage of GDP, however, Wikipedia shows the latter parameter to be 4.4 percent in both countries. Thus in need of checking is Forbes’ Mark Adomanis’ assertion that Russia’s military spending as a percentage of GDP is more modest than ours.

Ironclad, however, is the fact that America’s Democracy Alinskyites—blessed and backed by baby Bush and his non-identical, evil ideological twin, Barack Obama—are behind many of the “color-coded,” plant-based revolutions across the world.

Witness Sam LaHood, son of Ray LaHood, in his attempts to shape the Lotus Revolution in Egypt.

And to get his jollies, John McCain has to be talking US intervention around the world. Ukraine has been his target of late—and, seemingly, a State-Department floozy is already talking dirty on that front.

So, the Russians probably have reason to fear the US. Hence the military expenditure.

Adomanis departs from the menagerie of media morons when it comes to prognosticating about Russia, reporting that, “Life expectancy is going up, wages are going up, the birth rate is going up, and the death rate, the suicide rate, the murder rate, and the poverty rate are all going down”:

1) “While Russia is hardly an economic hegemon, its overall economic performance over the past decade has actually been pretty decent, especially when you compare its performance to the horrible post-crisis performances of many formerly communist countries in Eastern Europe.”

2) “Russia’s population was declining rapidly during the late 1990s and early 2000s, but this decline has leveled off and the population has stabilized.”


like tweet google+ recommend Print Friendlyprint