Category Archives: Economy

Canada Rising

Canada, Conservatism, Debt, Economy, Federal Reserve Bank, Political Economy

The Left will tell you it’s “regulation” that accounts for Canada’s strong banking system and solid economic growth. Nonsense on stilts; conservative financial practices account for the fact that Canada’s “economy grew at a 6.1 percent annual rate in the first three months of this year. The housing market is hot and three-quarters of the 400,000 jobs lost during the recession have been recovered.” (AP)

Canadian banks “aren’t as leveraged as their U.S. or European peers.” And I imagine that they did not aim to make home owners of those who cannot afford homes, and give credit to those who are not creditworthy.

The other day, CBC front man, Peter Mansbridge, reported approvingly on a Fed interest rate hike intended to prevent the distortions and the overextension that our artificially low interest rates are perpetuating. On American TV you’d have someone come on to give the Keynesian line to the contrary; government must stimulate; make up for sluggish demand, keep rates low. The CBC, as left as they come, did not present the “another side” to the interest rate hike story—-and rightly so.

There is only one correct economics, and it’s not the Keynesian kind.

Hey, Big Spender

Barack Obama, Capitalism, Debt, Economy, Inflation

Remember when, “right after signing his $857 billion economic stimulus program into law last year, Obama convened the now-forgotten White House Fiscal Responsibility Summit,” the one “where [he] promised to cut the annual federal deficit by half by the end of his term”? As the Washington Examiner reports, he’s done it again: made a symbolic, deceptive gesture.

BHO’s “Budget Director Peter Orzag announced with great fanfare Tuesday that President Obama wants all nonsecurity agencies to cut spending by 5 percent.”

That’s proof that he’s serious about cutting spending, right? At least that’s how the Washington Post sees things:

This is “the latest in a series of initiatives, legislative proposals and veto threats in recent weeks aimed at demonstrating that Obama is minding every penny.”

Readers of this blog don’t “take seriously any of these White House PR campaigns to make Obama look responsible on the spending issue.”

After all, in less than two years in the Oval Office, Obama had added more than $4 trillion to scheduled federal spending, driven the annual budget deficit from $467 billion in 2008 to nearly $1.6 trillion in 2010, and pushed the national debt from $10.6 trillion to more than $13 trillion. All of these marks are mileposts on the road to fiscal calamity.

So, Obamarxists needn’t lose heart—and can with confidence, renew their vows to The Chosen One. BHO is here to hammer the final nail in the coffin of American capitalism.

Debt Will Exceed GDP In 2012

Barack Obama, Business, Debt, Economy, Inflation

THE ROAD AHEAD IS SERFDOM. (Bloomberg) — “President Barack Obama is poised to increase the U.S. debt to a level that exceeds the value of the nation’s annual economic output, a step toward what Bill Gross called a ‘debt super cycle.'”

It’s also a reaffirmation of the thesis of Vox Day’s book, The Return of the Great Depression. This depression is going to be worse than the first because of unprecedented levels of debt—government, business, household.

Obama Jobs = More Debt

Business, Debt, Economy, Government, Inflation, Labor

GOVERNMENT JOBS ought to be recorded as an increase in the nation’s debt; not as an addition to the country’s payroll. These jobs are financed through taxes, if the country is solvent; through more deficit spending and debt in the case of the USA.

How did government jobs ever make their way into the Labor Department’s jobs reports? Stupid question, the answer to which lies in the purpose and nature of state-generated statistics. Said jobs are nothing but debt and inflation.

Thus, when President Barack Obama declared, after the jobs report of May came out on Friday, “that the economy is getting stronger,” this meant that of 431,000 jobs “created,” 411,000 were temporary workers for the census. Only 41,000 were private-sector jobs. The latter is a meager ten percent of the former. (Don’t ask me how the 431,000 was arrived at.)

“Despite the improvement,” parrots the WSJ, “the persistently high unemployment rate is a reminder of how much more is needed to fix the job market.”

WRONG: it is a reminded of how much less is needed to fix the job market—less government.