Category Archives: Economy


Democrats, Economy, Federal Reserve Bank, Inflation, libertarianism, Republicans

By Myron Pauli

The 2015 Republicans rest upon 3 fundamental pillars:

[1] SUPPORT OF “FAMILY VALUES”: whereby government promotes abstinence education, school prayer, and the old “Leave It To Beaver” lifestyle of sexual abstinent; of heterosexuals who married until death do us part with no drugs, abortions, or much booze. Those values were nostalgic and on the way out even in Beaver’s 1950s. While Bruce Jenner may no longer suffer gender confusion; many can appreciate that a nation that worships an Olympic athlete who is considering lopping off his manhood suffers moral confusion. The old time ideals still hold sway especially among the rural white Protestants in the “Red States”.

[2] CUTTING TAXES ON THE WEALTHY: In other words, “supply side economics” from the 1980s where tax rates of 70% were cut while the Federal Reserve jacked interest rates to 18% and led to renewed prosperity when inflation was finally conquered. People forget that Ronald Reagan and Bob Dole raised payroll taxes and that government spending skyrocketed. The “supply side” formula did not work under Bush-II and most people see that the bailouts enrich Wall Street megabanks and that billionaires like Donald Trump buy politicians of both parties, and don’t shy away from using eminent domain laws to grab private property and bankruptcy laws to default on $5 billion of debt. The middle-class treads water and the “working class” drowns (as its jobs disappear overseas or are lost to robots) while the Fiorinas come in, fire employees, tank the stock, and walk away with $100,000,000. Nevertheless, the “supply side” idea has enough libertarian appeal and sufficient economic common sense to garner political support.

[3] GLOBAL WARMONGERING: Where the neocons make war on demons intent on destroying us – Afghans, Yemenis, Libyans, Russians, Chinese, Syrians, Iranians, “terrorists,” and where we pump billions into defense contractors. The “bad guy” drumbeat never stops, with every beheading or “Russians expanding influence” or some or other existential threat to Peoria—such as Saddam Hussein’s nuclear-armed cruise missile “mushroom cloud”—constituting a reason to keep up the drumbeat. Fear is not only a great motivator but wins votes as well.

The 2015 Democrats have their basic pillars:

[1] TO BE THE MAJORITY OF THE “MINORITIES”: Immigrants, Hispanics, non-whites, non-Christians, non-heterosexuals, and feminists with enough identity grievances constitute a Democratic majority. Lesbians and Muslims may not have common cause, but do have a common enemy. Blacks and Asians have little love for one another, but the enemy of my enemy is my friend; and rural, heterosexual, anti-immigrant, white Protestant men are The Enemy.

[2] CIVILIAN GOVERNMENT EMPLOYEES/DEPENDENTS: Discounting the military and defense contractors who lean Republican, millions of academicians, Amtrak employees, elderly, students, welfare recipients, firefighters, Sallie Mae employees, social workers, TSA gropers, and their families get their compensation from the government. This forms an almost unstoppable bulwark even if a small percentage of that constituency are Republicans. Money means self-interest and money talks.

The libertarians, constitutionalists and non-interventionists who’re not into the Red and Blue- State identity politics only have apathy and cynicism to turn to. Also stuck in the middle of this muck are old rural white, gun-owning Jacksonians like Confederate descendant James Webb who started as a Democrat, left the party of McGovernization, worked as Reagan’s Navy Secretary, and then returned to the “old Democracy” after watching the neocon plutocrats of Bush-II screwing over his rural Virginian constituents.

Webb and others are as much political orphans as the libertarians.

The political season opens up with 2/3 of Republicans rejecting their own politicians for 3 candidates who never served in any public capacity. The Democrats are stuck with an openly corrupt ex-Secretary of State and Presidential spouse who raises billions from the Wall Street crowd. Or an aging Marxist who does not even belong to the party.

While a majority will stay home on election day, the only major motivation to vote is fear of the other party!


Barely a Blog (BAB) contributor Myron Pauli grew up in Sunnyside Queens, went off to college in Cleveland and then spent time in a mental institution in Cambridge MA (MIT) with Benjamin Netanyahu (did not know him), and others until he was released with the “hostages” and Jimmy Carter on January 20, 1981, having defended his dissertation in nuclear physics. Most of the time since, he has worked on infrared sensors, mainly at Naval Research Laboratory in Washington DC. He was NOT named after Ron Paul but is distantly related to physicist Wolftgang Pauli; unfortunately, only the “good looks” were handed down and not the brains. He writes assorted song lyrics and essays reflecting his cynicism and classical liberalism. Click on the “BAB’s A List” category to access the Pauli archive.

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Trump’s Private Property Plunder Plan

Economy, Private Property, Taxation

The government has several ways to pay for its obligations, one of which is to seize private property in the form of taxes. Taxes are private property plundered. A tax cut for those who pay taxes is tantamount to a return of stolen goods.

With a tax cut, the plundering class simply agrees to pilfer less. The notion that you must “pay for tax cuts” is like a burglar promising to return the television he stole as soon as he is in a better financial position.

I get a headache from just reading Donald Trump’s plunder plan. Rand Paul’s taxation policy is the best in a bad bunch. Rand “has proposed a 14.5 percent flat-tax rate for all types of income.” Equality under the law? What a concept? A flat tax limits state theft. The idea would send the socialist pope in search of sackcloth and ashes.

Trump, on the other hand, has let the low-income cohort off the hook. “Individuals that make less than $25,000 (and $50,000 for married couples) would pay no income taxes under Trump’s plan.”(CNN)

BAD. All citizens should have a dog in this fight. Better to let the so-called poor set the flat-tax rate for all of us. It would be lower than Paul’s 14.5 percent.

Trump’s plan is progressive: the more private property you accrue, the greater the percentage of which you forfeit.


Unspecified, too, at least in this WSJ article, is the burden Trump plans to place on those earning between $100,000 and $300,000.

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Donald Trump Speaks Our Language

Bush, Conservatism, Economy, English, Intelligence, Israel, Left-Liberalism, Political Correctness, Republicans

“Donald Trump Speaks Our Language” is the current column, now on The Unz Review, America’s smartest webzine. An excerpt:

WHEN IN THE US, SPEAK ENGLISH. Donald Trump’s retort to Jeb Bush’s rattling off in Spanish on the campaign trail conjures an old joke told in Israel of my youth. It was aimed at the ultra-orthodox Jew who dresses weirdly and won’t speak Hebrew. Here goes:

Walking down the street is a Sabra (a Jew born in Israel), clad in the pioneer’s outfit of shorts and a Tembel Hat. (“Tembel” is Hebrew for silly. The image below illustrates how not even a beautiful Israeli girl can dignify a hat so useless as to provide no protection from the merciless sun.)

From across the street, in Yiddish—the language of the diaspora—an ultra-orthodox Jew clad in black garb shouts obscenities at the Sabra. The minuscule ultra-orthodox community believes that speaking Hebrew before Messiah arrives is heretic and will delay the coming of Messiah (also known as the longest coming in history). For Messiah to materialize, the Jew must remain weak, dispossessed and persecuted—a sickly spirit without a corporeal country to call his own.

The Israeli shouts back, “Speak Hebrew, goy!” Goy meaning non-Jew.

Trump took a jab at Jeb for using Spanish to dismiss the mogul’s conservative credentials. Via CNN:

“‘I like Jeb,’ Trump told Breitbart News. ‘He’s a nice man. But he should really set the example by speaking English while in the United States.'”

The Trumpian reference was to the former Florida governor’s comments to reporters … about Trump’s policies. “‘El hombre no es conservador,’ Bush said, which translates to, ‘This man is not a conservative.'”

Not only was Trump’s visceral retort in defense of English righteous; it was also culturally conservative in the best of ways. …

… Read the rest. “Donald Trump Speaks Our Language” is now on The Unz Review.

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Scott Walker: Equal Opportunity Fencer

Canada, Economy, IMMIGRATION, Intelligence, Labor, Republicans

Republican presidential hopeful Scott Walker is an equal opportunity fencer. Reflexive, laboring to show he does not discriminate against Mexico, Walker showed himself to be a bit of a bumpkin. As follows:

Republican presidential hopeful Scott Walker has called building a wall along the border between the US and Canada a “legitimate issue”.

Illegal immigration and the security of the southern border with Mexico have been major issues in the Republican race for president, but the northern border has not been discussed.

Mr Walker made the comments in response to a question from a NBC News reporter.

“That is a legitimate issue for us to look at,” he said on Sunday.

Does the US have a problem with a deluge of illegal immigrants pouring over the Canadian border? No. Canada is a high-wage area. The US is a high-wage area. Latin America is a low-wage area. Migratory pressure, Mr.Walker, flows from low-wage to high-wage regions.

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‘Taper Tantrum’ About Life With Less Quantitative Easing

China, Debt, Economy, Federal Reserve Bank, Inflation

Essentially, the monetary upheaval being experienced has come about because of a mere threat of the withdrawal of quantitative easing. The sell-off that “took the Dow Jones down more than 10 percent from its peak valuations” must be seen in the context of “seven years of zero percent interest rates,” avers fancier and Austrian Economist Peter Schiff. At work are gains that have come about likely not “from bona fide improvements in the economy,” but due to “the twin props of Quantitative Easing and zero percent interest rates.”

“The Fed has already removed one of the props, and it’s no accident that the markets have gained no ground whatsoever in the eight months since the QE program was officially wound down. As the market considers a world without the second prop, a free fall could ensue. …”

… Stock valuations [have been] extremely high and earnings are falling and the economy is clearly decelerating. The steady march upward in stock prices has been enabled by a wave of cheap financing and share buybacks. There are very few reasons to currently suspect that earnings, profits, and share prices will suddenly improve organically. This market is just about the Fed.

And Donald, “The Fed Is Spooking the Markets, Not China.”

Related: “Sinophobia Trumps Common Sense” & ‘Monetary Rigor Mortis.’

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‘Monetary Rigor Mortis’

Debt, Economy, Federal Reserve Bank, Inflation

Intrinsically, libertarians of the Austrian School of Economics know all too well what’s afoot across global financial markets. As of Friday, the Dow was at 16,450, down 1,018 points for the week. Yet, search libertarian websites high-and-low and you’ll be hard pressed to find decent commentary on the state of financial markets. Doug Casey and Jeff Berwick agree that financial collapse is imminent, writing that “we are now exiting the eye of the hurricane and rapidly heading towards what he terms the Greater Depression, and Jeff Berwick believes a collapse is being planned for September, moving the world closer to a one world government.”

Monetary rigor mortis is David Stockman’s term for what’s underway. Doug Noland fleshes things out at Stockman’s Contra Corner:

… Global financial tumult has now attained sufficient momentum so that even U.S. markets can no longer remain comfortably oblivious. Yet, for most in the U.S. there remains little worry: the economy is sound, housing is booming, Silicon Valley is heroic, the banking system is rock solid, and the corporate sector is awash in cash. The U.S. economy is viewed as insignificantly exposed to China’s economic slowdown – and to global issues for the most part. Analysts speak of a “normal” stock market pullback – yet another buying opportunity. There is, however, little normal about current global financial, economic and geopolitical backdrops.

The last seven years have witnessed unprecedented EM debt expansion, led by what should be a frightening ballooning of Chinese Credit. In particular, Chinese and EM banks have coalesced into historic lending growth and balance sheet (assets and liabilities) expansion. This week saw indications of what has the potential to erupt into an Asian and EM banking system crisis of confidence. Faith that Chinese and EM government officials have the situation under control is surely being shaken. This is a game-changer for global finance and for the world economy. Financial conditions are tightening around the world – and this has zero to do with a possible September Fed (“baby step”) rate increase. …

… there’s a recurring theme that is especially pertinent these days. Financial and economic Bubbles invariably prove much more resilient than Bubble analysts presume. And, at the end of the day, the excesses and consequences go beyond what even the hardcore “bears” could anticipate. The adage around our office became: “It’s Always Worse Than You Think.”

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