Monday, November 30, 2009
Sustainable Economics And Sustainable Energy Update
When peak oilers were yapping about the world running out of oil & carbon-based energy, we were remarking years before that the world was experiencing an unprecedented capacity glut. When oil was peaking we were talking about the impending collapse in commodities, the Middle East and China. We also had a few detailed posts discussing the dynamics involving the world's engineers, scientists, business executives and entrepreneurs which were being unleashed on the energy productivity dilemma. And, we put up quite a few lengthy posts on what this meant to the American economy. We also talked about the impact it would have on the OPEC cartel and an eventual brutal response from American inventiveness.
If the U.S. can stem the tide of energy imports, it will account for trillions upon trillions of dollars which will instead be invested in industries within the United States. Many of those industries will be sustainable. ie, A renewable annuity creating sustainable economics and sustainable employment. It isn't a matter of if but when. Not only will the direct costs of energy imports be mitigated but so too will the trillions of military dollars and foreign aid spent protecting our energy supply lines. That means the future of the U.S. economy will eventually see a massive swell involving tens of trillions of dollars which is now exported out of our country. And, I do mean tens of trillions of dollars. In other words, for most of the tyrannical, repressive, crooked and often outright evil OPEC goons, it sucks to be you. Not yet. But all in due time. (Ever thought about what impact these dynamics will have on the U.S. dollar? Or plans to move away from the dollar and eventually develop a pan Arabian peninsula currency? Or any other yapping commentary so readily available from the mindless financial press?)
All of this is simply a rehash of posts we have put up over the last four years. But what is new with this post is below.
On the cover of November's Scientific American is a plan to become completely energy independent in the next twenty years. Right plan? Wrong plan? Who cares. The plan isn't likely to be financially achievable nor is it technologically desirable but that is really irrelevant on some level. What is relevant is the world has made tremendous scientific progress in a short period of time and that trend is going to gain even more momentum in coming years. I'd encourage you to run down to the news stand and pick up a copy. If not, the authors have been kind enough to post some of their work on the net for our review.
This is an opportunity for government to play a major role in constructing a new economy. Not necessarily just by direct involvement but then we should be open to any type of solution which benefits democracy. As an example, we could let "as-is" capitalism develop this transformation in the form of monopoly utilities, mega corporations and the same old same old. Or we could incent entrepreneurs, monetization of new technologies by the creation of small businesses and have cities or government only grant contracts to small businesses thus incenting business creation and a more democratic implementation of capital creation. We could go a step further and require much of any operational businesses to be local thus creating sustainable jobs not just for the U.S. but for individual communities. Or, frankly, we could have individual cities work in concert with local cooperatives to invest in sustainable energy businesses owned by local communities and or businesses. The solutions are endless. How they are implemented should be accomplished in a thoughtful manner. They should be skewed to enhance democracy and new capital formation. If that involves capitalism, so be it. But solutions don't need to in fact be capitalistic to be democratic or to help transform the economy and create sustainable industries and employment. From my perspective, a key component that must be part of most sustainability initiatives is localization. Localization is a big deal on here. Whether anyone realizes it yet, it is a substantial future of the American economy.
If businesses or solutions provide a quantifiable return on investment to measurable problems, incent the market and let American invention and creativity determine what is possible.
The financialization of the American economy is over. Period. Wall Street and their beholden politicians and lobbyists are trying to keep the fraud alive but they will fail. If you work in the financial industry and you aren't in a traditional banking role, you might start considering a new career. Say .... basket weaving. We have been writing about this coming dynamic for four years but the future will have marginal use for many of today's financial talents. Pushing paper around does not increase the capital stock of society. A fact not an opinion. And that means just like Wall Street's undue political influence over the American economy forced countless millions of people to retrain for new, generally less economically-valuable careers, so to will the economy force this change on the financial community. Who will retrain our financial community? Why of course, it will be the same self-important pinheads at Harvard and other elite institutions who were so necessary to the financialization of our economy in the first place. And what will they be teaching? They will be teaching the undoing of their complicity over the last twenty years. Reprogramming the ridiculous theories and notions they stuffed into so many heads in the brainwashing that the new economic rock stars would be bankers. That Wall Street would become the economy. A role Wall Street still attempts to play today. A completely preposterous notion that has absolutely no validity.
What is old becomes new again. What is new often becomes worth substantially less. And so the cycle turns again and again.
Sunday, November 29, 2009
The Federal Reserve Gulag Endlessy Reiterates Need For Independence
One such bureaucracy we have lighted where this dynamic is likely to unfold is the communist party in China as its economy and social structure starts to fray. Speaking of communism, Bernanke is out once again stating that economic stability of the U.S. will be impaired by attempting to make the Federal Reserve an institution which embraces democratic ideals. A completely preposterous position which has absolutely no intellectually-reasoned support. The American people are not children who need a parent to manage their lives. We are only capable of reason when we are educated with truth. We already know the outcome when the Federal Reserve operates as it has. As a structure supporting anti-democratic and anti-capitalist corporate socialism. Let's try democracy with an institution that is supposed to work for the betterment of society. A monetary authority that is accountable to the sovereign of this country. A monetary authority which is accountable to the sovereign through the U.S. Congress, as the Constitution tells us it should be.
Ben Bernanke attempting to save the structure of the Federal Reserve as it now exists is no different than the leaders of the Soviet Gulag government agency rationalizing the need to enslave dissent and undesirables. Similarly, the Federal Reserve Gulag rids society of economic opportunity and the achievements of our citizens by keeping the jack boot of a private banking system on the neck of the American people. Clearly an anti-democratic bureaucracy which needs to be reformed. And if Ben Bernanke doesn't understand this concept, maybe he should take some time to inform himself of the basic ideals of democracy, the need for transparency to perpetuate a democracy and the need for a society to be educated and informed in order for democracy to survive.
These calls for independence by central bankers exposes their desire to perpetuate a bureaucracy and their power base rather than a desire to serve democratic ideals. The Federal Reserve must be audited.
Saturday, November 28, 2009
Final Remarks About The Dubai Mess
Supposedly the current crisis is associated with the Palm development. I'm sure most everyone is aware of the man-made residential islands but if not, there is a nice Youtube video showing the level of the development's hubris and extravagance. It's no irony that much of Dubai's development was to become the playground for the world's mega rich and it is indeed the mega rich who are losing massive sums of wealth - a timeless sign of the foolishness of the human ego. When in history has humanity every achieved a life of permanent leisure? I seriously doubt if the Palm will ever become anything other than an unfulfilled fantasy. It could easily end up being consumed by the ocean due to neglect. Just like failed societies from times past.
Goldman Sachs has been very active in the oil fiefdoms over this cycle. And, in fact, opened their offices in Dubai right at the peak of globalization. We wrote of Morgan Stanley and Goldman Sachs' foolish involvement in the Middle East before the global economy collapsed.
While CNBC was taping from the United Arab Emirates and fawning over their perceived brilliance, we were also writing of its impending doom. CNBC has literally been on the wrong side of every trade be it fawning over the brilliance of private equity, hedge funds, China, the Middle East, housing executives, mortgage bankers, Wal-mart and on and on. Each were glorified at the very peak of their bubble.
The trivialization of the coming crises in the Middle East continues with this Dubai default. It won't be trivialized before it is all over. These pseudo nations are likely to experience decades of economic consequences associated with their incredibly foolish behavior. That is, if they don't experience outright collapse.
Friday, November 27, 2009
The Original Black Friday
Nothing like starting Black Friday off with a wallop. With global markets down substantially both yesterday and today and with Dubai's coming sovereign debt default (a near certainty for a very large number of emerging markets in my estimation) what psychological effect will this have on an already weak American consumer? We can expect it to be substantial.
That brings us to the original Black Friday. Not the start of the Christmas shopping season but one of the greatest financial crises in American history. Again, caused by the Wall Street Banksters. It's quite ironic that we see both the retail and financial Black Friday now converging on the same day for the first time in history.
From my many bearish posts on gold, you might infer the original Black Friday might actually be in play again in modern times ...... It is again financial speculation that is the primary driver for gold's ascent. More on that in a future post where we again reaffirm our negative position on the shiny yellow metal.
As we have said countless times over the years, the world is not as it appears. As it reveals itself, most everyone will be caught completely off guard.
Dubai's Debt Implosion Is Right On Time
Right after the banksters honor this request, I want the same favor. Except rather than a reprieve, I would prefer that my debt be put onto the back of the American taxpayers. You know. Just like the banksters. You all don't mind bailing me out, now do you? I can assure you that I would be much more grateful than Wall Street was. I would actually thank you. Something the sociopaths on Wall Street didn't seem capable of.
Debt repudiation seems to have a viral effect, eh? In other words, what we are witnessing is the breakdown of the rule of law. The government provided the precedence as we highlighted in our finance industry control fraud post. It's consequences will likely be substantially greater now that our government has failed to prosecute fraud or enforce the rule of law. Who really knows where this dynamic will end? As Americans see their burdens become greater through higher taxes, higher fees and higher costs across the board because of fraud and the lack of enforcement of the rule of law for a handful of connected companies or individuals, we could easily see a wholesale crisis where society chooses to apply the same arbitrary laws to their own situation. Newton's Third Law - for every action there is an opposite and equal reaction.
Aren't you glad Wall Street, American mega banks and American mega corporations have invested all of the capital you provided them to invest in these crackpot countries? Ummm ..... do you think we might be witnessing a little of "once bitten, twice shy" on a global macro level?
Thursday, November 26, 2009
A Pilgrim's Thanksgiving Reminder To Algore, DICK Cheney, Central Bankers, Wall Street Mobsters, Crooked Lobbyists And WTO Pinheads - NO MORE KINGS
A Presidential Address On Thanksgiving Day
Wednesday, November 25, 2009
The Skyscraper Indicator Revisited
Tuesday, November 24, 2009
Dubai - You Buy It, You're Responsible For It
.......... It's amazing that a single city with approximately half a million native inhabitants and another one and one half million servants can consume itself with $80 billion in debt ........... Just as with Lloyd Blankfein, they must have been doing Allah's work.
Dubai is fiscal lunacy defined. The party in the Middle East and Dubai is just starting. Grab some popcorn, sit back and enjoy the fireworks.
Moodys Downgrades Mexico
Monday, November 23, 2009
Former Fed Bureaucrat Kroszner- Deer In The Headlights - Tells Us Exactly Why The Fed Should Be Audited Via His Inability To Answer A Basic Question
Randall Kroszner is a poster child as to why transparency, accountability and a free flow of ideas are demanded to maintain a free society. Mr. Kroszner is a typical bureaucrat. He defends the status quo with great vigor yet cannot provide a reasoned analysis why. I'll tell you the reason why. It's the exact same reasons Thoreau cited more than one hundred and fifty years ago. That Kroszner cannot answer the most basic question as to why the Fed should not be audited is indeed all the validation a free society needs to audit the Federal Reserve.
Kroszner continues to brainwash students as a teacher. Brainwash them into believing the Federal Reserve is independent, that the Congress granted the Federal Reserve powers for virtuous reasons rather than under the duress of undue banking lobbyists, and that a rule of law is somehow better served when a free society has no idea what that rule of law is and when decisions about our future, our savings and our society are made without our knowledge. Kroszner is an elitist who obviously does not believe in the Constitution or democracy. He defends neither. Instead he defends a failed ideology and bureaucracy with no accountability to the American people.
The fact is our Constitution granted monetary authority to the Congress so the American people would have direct control over our finances. Not outsources to private crooks and central banking idiots.
If the American people knew what was going in our government, in the Federal Reserve and in this crisis, and we encouraged fresh ideas from society, we would rapidly find answers to deal with our problems. Problems created by bureaucrats like Kroszner. The free flow of ideas, of invention, of creativity are not only what drive a vibrant economy, they are mandatory for a properly functioning democratic government. We've already seen what bureaucrats like Kroszner are capable of, ie trashing our society, let's embrace democratic ideals to solve our problems. Let's take back our democracy and our government. Obviously through peaceful methods.
Jamie Dimon As Treasury Secretary? You Have Got To Be Kidding Me.
So now it appears they are considering an equally terrible mistake. Jamie Dimon's name has all of a sudden come across the headlines as a replacement for Geithner. Political hacks testing the waters for a Geithner resignation? The New York Post is a wonderful rag. And, I think this comment from a reader to said story sums it up perfectly.
yea, that is what this country needs, another crooked banker running our monetary policies. How is it Dimon is never accountable for the frauds committed by his firm and yet is given accolade when something goes well? How has Dimon and Chase treated the small businesses and consumer when it comes to lending? That would be his policies as treasury as well!
Frontline On November 24th - The Tyranny Of The Credit Card Industry Courtesy Of Washington Politicians7:08 AM links to this post
Sunday, November 22, 2009
Climategate - Is The Evidence For Humanity's Involvement In Climate Change An Elitist Sham?
Mind you, I do not belong to the Luddite movement as defined by many equally ridiculous anti-science politicians who eschew tree hugging, protecting the whales, attempting to stem the spread of genetically-modified foods, dealing with pollution, etc. Because we are slowly destroying the beauty of nature and if we don't wake up, we may end up destroying ourselves. As comedian George Carlin said, the earth will do just fine. It's only a matter of whether we survive our own foolishness. But these are separate issues. It's common sense to paint ourselves into the future health of our planet. But it is elitist political ideology which has generally forwarded the premise that humanity is the primary input to climate change.
Al Gore, as an example, knows about as much about the science of global warming as he does about the science of the internet. He claimed the internet as his invention and claims to understand the science behind global warming as well. Hogwash. He has repeatedly shown he has little reverence for science as it pertains to this issue. Gore's recent remarks that the earth's crust, core or whatever is several million degrees shows his utter scientific ignorance. (That's only a few million degrees hotter than the "surface region" of the sun. Same elitist megalomania that led this same dimwitted politician, with no scientific training in college or after the fact, to claim authorship of the internet. Doh!) Gore is driven by a biased political ideology rather than an unbiased search for scientific truth that is validated on some level by the public discourse and scientific peer review. If he supported science, he wouldn't try to quell its dissent. And he most certainly has as witnessed countless times including a link below.
The only thing worse than a politician who believes they are capable of setting scientific agendas is one who eschews science all together. We see both of these dynamics at work today as often countering forces. Both our prior President and current President are guilty of attempting to either stop science or determine its future.
When all of humanity becomes gripped by a scientific movement led by a politician, a politician with zero scientific training, my radar goes up. When this same politician wins a Nobel Prize based on work that indicts humanity as the main cause of that pseudo-scientific/pseudo political movement - climate change - my radar goes up a little more. When he wins an Academy Award for the same work, it's anecdotally a near certainty the movement is dubious. Tie that in with the work of many scientists that clearly refutes political claims made by said politician and one has the makings of a great hoax.
Here is what you may not read in the mainstream media. An acknowledgement by a well-respected top government scientist who was fired because he challenged Al Gore on the science behind his global warming claims. Science that a politician refused to consider because it would interfere with policy. Policy is doublespeak for ideology or doctrine. Doctrine is completely rejected by science. Instead, it is a form of control or social conditioning. Were Gore in search of the truth he would have embraced public dialog and the work of this scientist or any other scientific claim to determine truth. The goal of science is to determine truth. The goal of many politicians is to set ideology. What we see in Gore's actions are more than telling. It's also interesting that Gore seems to be positioned to profit handsomely from his views with an investment in a carbon trading company. And Gore's partner in his investment? Why none other than a former Goldman Sachs senior executive. And the idea for carbon trading? None other than now imprisoned Enron executives. Truth is undeniable. So is transparency. Funny how that works.
Many scientists are now attributing the change in climate to changes in the earth's core, solar activity and extra terrestrial energy sources. While we don't understand the causes of these dynamics, we do understand their impacts quite well - something doctrine clearly doesn't care one bit about. Yet the reality is forces of nature are many millions of magnitudes more powerful than any possible effect humanity could have on this planet. Could these forces be intertwined with human involvement? Sure. They most certainly are. And we should be very concerned about the state of the planet. But here are a few remarks from 650 of the top scientists refuting the conclusions by many politicians plus a link to their full report available from the U.S. Senate Committee on the Environment.
“I am a skeptic…Global warming has become a new religion.” - Nobel Prize Winner for Physics, Ivar Giaever.
"Warming fears are the “worst scientific scandal in the history…When people come to know what the truth is, they will feel deceived by science and scientists.” - UN IPCC Japanese Scientist Dr. Kiminori Itoh, an award-winning PhD environmental physical chemist.
“Many [scientists] are now searching for a way to back out quietly (from promoting warming fears), without having their professional careers ruined.” - Atmospheric physicist James A. Peden, formerly of the Space Research and Coordination Center in Pittsburgh.
“It is a blatant lie put forth in the media that makes it seem there is only a fringe of scientists who don’t buy into anthropogenic global warming.” - U.S Government Atmospheric Scientist Stanley B. Goldenberg of the Hurricane Research Division of NOAA.
“The models and forecasts of the UN IPCC "are incorrect because they only are based on mathematical models and presented results at scenarios that do not include, for example, solar activity.” - Victor Manuel Velasco Herrera, a researcher at the Institute of Geophysics of the National Autonomous University of Mexico
I really appreciate the last remark. It reminds me of the faith in the completely unscientific scientific models and the associated voodoo science that has tanked Wall Street and our economy. Deficient models. More appropriately termed "Garbage In => Garbage Out" or GIGO theory.
Alternatively, if you are convinced that the world is warming and it's a long term climate change caused primarily by humanity, are you sure it's based on incontrovertible science? How many scientists have you seen espouse this view and where did you see them? Television? Is the corporate media performing in a self-serving role rather than educating society? Of course they are. When politicians and power-seekers determine the course of action in science we seldom seek truth and enlightenment but rather ideology.
It's a noble cause to clean up the planet and embrace sustainable ecological economics. But, to use policies of fear and tax penalties that will impose greater burdens on citizens and businesses exactly at a time when they can't afford it, is not the right strategy. Instead it is an ideology. We, through our government, should provide incentives for society and business to innovate. Then we can all reap the benefits of job creation, sustainability and improved ecology.
There have been many claims by scientists and many seekers of truth that climate data is being manipulated to support an elitist agenda. A few days ago the term Climategate was coined to describe some level of misinformation about climate change has been hacked and has now entered the public domain. Let's watch and see how deep this Climategate goes. Transparency is a beautiful thing. It's the very basis of democracy and the enemy of ideology.
Saturday, November 21, 2009
Debauched Hubris Defined - Royal Caribbean's Oasis Of The Seas
Friday, November 20, 2009
There Is No America. There Is No Democracy.
Federal Reserve Audit Back On? Society Must Maintain It's Pressure On Congress.
I am amazed at the ridiculous arguments trying to keep the American people from knowing what is going on at the Federal Reserve. In a democratic society, a society of self-rule, how can there be any argument given to secrecy in government? That is not self-rule unless it involves giving up military information that may jeopardize human lives in the time of war.
This morning Senator Judd Gregg but forth a brain dead argument as to why we should not audit the Federal Reserve. That is, that Congress should not be involved in monetary policy. That is completely hilarious and a ruse. The countless billions of dollars that line our Congresspeople's pockets courtesy of Wall Street mobsters guarantees that Congress is already primarily responsible for monetary policy by setting the rules to the economy and banking. Judd Gregg needs to wake up or find a new job. The Federal Reserve's autonomy is a feint. A ruse. A lie.
The Constitution of this country provides Congress with monetary authority. Many of our founding fathers warned of private banksters ever gaining control of our monetary policy. They saw the evil that was the banking system in England - a major motivator for the American Revolution. The Federal Reserve has no Constitutional authority not granted to it by the Congress. None. The Congress is the voice of the people. As elected officials, they are accountable to the people. The Federal Reserve has no accountability to the people. This is purely circular reasoning to protect the crooked racket in Washington.
The Federal Reserve has enabled the crooks on Wall Street and given them countless trillions of our money. As a free society, we demand to know what is going on at the Federal Reserve. It is our authority. As a free people, we serve no master. No master. None. We serve a rule of law set forth by the people. If the Wall Street mobsters dismantled our laws and We the People now demand a new law, ie an audit of the Federal Reserve, our public servants are responsible for executing that law.
The crooks and liars will surely try to quell this audit again. We must keep the pressure on until the act has passed.
Interactive National Unemployment Report By County5:38 AM links to this post
Thursday, November 19, 2009
Crimes Against Humanity - A Record 50 Million Americans Facing Hunger While Wall Street Pays Record Taxpayer-Funded Bonuses For Fraud
Stench - The "Money Committee" And The Soviet Democratic And Soviet Republican Political Stooges Put Forth Morally-Bankrupt Financial Reform
Who's laughing at Greider now? His journalism seldom has few equals.
Take a look at what Greider is saying about financial reform coming out of the House of Representatives. It aligns well with our positions. But there is a lot of seamy new information on the morally-bankrupt Washington rot.
The problem with America is not Wall Street per se. It is Washington. It is the insatiable desire for massive sums of money needed to run national monopoly political parties. Money best provided by mega corporate monopolies and oligopolies with enormous spending power. How does a corporate firm achieve such spending power? By destroying competition. That's where the corruption in Washington comes in. In return for destroying economic competition and removing regulations, Washington gets what they want. The end result of massive profits.
Our government has the intellectual diversity of the Soviet Politburo. Political stooges ensure only those willing to accept intellectually deficient party ideology get money to win national elections. And, then those Congresspeople become beholden to party power stooges like Rahm Emanuel. So, when it's time to fall into line, dissent is marginalized or money is not provided to win re-election. The two party system has become one of cronyism and massive fraud where the diversity of democracy is not tolerated.
Washington is morally bankrupt and does not represent the diversity of ideals or inventiveness or virtues held by Americans regardless of race or creed.
Combine that with what we see on Fox, MSNBC and CNN 24-hour news - countless political stooges with titles of consultants and advisors providing useless and mindless Orwellian-brainwashed ideology pawned off as insightful commentary. Unfortunately, the commentary seldom has merit because it's purely political ideology. Brainwashing. Group think. What does a political consultant know about health care reform other than what is written on their cliff notes. Cliff notes provided by the party power bosses? Or how to fix the economy? Or for that matter anything other than politics? A major contributor to why debate in the mainstream media is so utterly worthless.
The U.S. is failing because we are run by Soviet-style political structure that is corrupt. Soviet-style political structure which does not reflect the ideals of its people. Neoliberal Soviet-style political structure which serves the interest of an elitist class. Just as in the Soviet Union. It's no coincidence the results are turning out to be the same.
Want to enforce anti-trust law? Break up the two party political structure and outlaw political parties. Force individuals to run for political office based on merit. On their inventive ideas and desires to serve society with dignity and honor. And require all national election funding to be funded publicly.
Every single problem in the American economy can be fixed by reforming Washington. Because every single problem in the American economy was created in Washington. Solutions will be found by electing people who will do the will of the American people. Whatever that will shall be. We need a return to representative government. Not a government run by Soviet-style stooges who suppress virtue, individual achievement, creativity, democracy and excellence of a free society in favor of the corruption, cronyism and favoritism of the Politburo.
It's good to be the king. Not much longer though.
Wednesday, November 18, 2009
The Affordable Health Care Debate - Two Perspectives
Housing Starts EXPECTEDLY Fall Again
So, even though the Wall Street Journal reports housing starts unexpectedly fell, the question is who thought it was unexpected? Politicians and central bankers? I seriously doubt the engine of growth - the people of this country - thought it unexpected because they are filing bankruptcies in record numbers.
Something to think about..... For those who can't wait to take advantage of the Federal government's housing tax credit - aka Cash for Clunkers applied to housing - we wrote on here a long time ago (When the world was still partying) that housing prices could drop to 1995 levels. I still believe that is quite possible.
Tuesday, November 17, 2009
Transparency International's Global Corruption Map9:36 AM links to this post
JP Morgan, UBS And Bank Of America Sued Over Conspiring To Rig Derivatives
Russia Won't Diversity Currency Reserves Away From Dollar9:18 AM links to this post
Sheila Bair On PBS
Many people have tried to lump Sheila Bair into the Washington mess. Bair was actually out in front of the curve on some of these issues. By years in some instances. Yet, the politicians didn't want to listen - a regular pattern of fraud and corruption. I think Sheila Bair was a quite competent executive at Treasury and now at the FDIC. She has been willing to publicly criticize policy she believes may be problematic without overly politicizing her perspectives. In other words, watching out for the common good as an honest public servant.
She recently gave an in depth interview at PBS Online Newshour where she admitted TARP was a failure. Recently Bair has been critical of allowing large banks to remain in existence as well as other systemic problems that have manifested themselves in this crisis.
Monday, November 16, 2009
Is The U.S. Military Knowingly Participating In An Illegal Extortion Racket Of Taliban Drug Dealers Using Billions Of American Taxpayer Dollars?2:06 PM links to this post
Nations Pledge To "Refrain From Raising New (Trade & Investment) Barriers"
Ron Paul - Is The Federal Reserve Audit Dead? And Some Timely Ramblings On Regulations.
Apparently, Ron Paul's audit is dead. Or so it appears from his remarks. That is, until we hit the next phase of this crisis and public outrage hits another high note. Potentially a permanent one until real change is dealt with in Washington.
I like Ron Paul immensely because he is honest and seeks nobility in government. Not because of his views on society or economics. His views on government's role in society, social contracts and regulation are dubious at best and voodoo at worst. Those who advocate no government regulation, views advocated by many interpretations of Austrian economics, are supporting positions of ideology rather than understanding economics or markets from a mathematical, market theory or gaming theory perspective. In other words, his perspectives are not borne out by sound science.
The argument that regulations don't work so we shouldn't have them is a common argument by many Austrian ideologues. In fact, what we have witnessed for the last thirty years is Austrian economics in action as it pertains to a debate of "free markets" versus regulations. It doesn't matter if we are talking about the FDA, the EPA, anti-trust laws, banking regulations, financial market regulations, trade within the American economy or with other nations, medical insurance or any other regulation. These agencies and the associated rules of engagement in the economy have been gutted. The movie Food Inc highlighted, as an example, that FDA inspections have dropped by approximately 35,000 annually since the mid 70s while our population has exploded. It's no coincidence that we have increasing incidents associated with the safety of our food. Our economy does not simply suffer from Wall Street run amok. It suffers from corporations run amok due to the dismantling of regulation. Aka free market ideology supported by many Austrian economics ideologues. Free market ideology not supported by sound science.
This isn't anarchy central where those most willing to trample their fellow man win the game - yet that is exactly the free market ideology we see today. We live in a society which is subservient to a rule of law set forth by a free nation. That includes in the game of economics. When these laws, ie regulations, are dismantled, we end up with a lawless economic system which is only limited by the animal spirits of nature. Do anything and everything to destroy or be destroyed.
Sunday, November 15, 2009
Jamie Dimon Doesn't Understand Basic Math Or Our Laws On Too Big To Fail
Friday, November 13, 2009
Change You Can Believe In - Our Queen Mother And Overlord, Nancy Pelosi, Reaffirms Her Desire To Send People To Prison For Being Poor
But our queen mother affirms that the Stasi will in fact regulate her health care plan. A plan she herself called a Christmas present for the American people. I find her rationalization in this video rather interesting. And generally based on substantial mistruths. That she believes people simply waltz into emergency rooms to get health care because they don't want to pay for insurance, and then stick society with the bill is preposterous. People generally end up in the emergency room because they cannot afford insurance. The only way society gets stuck with that bill is if collection agencies can't suck the last ounce of dignity and self-respect out of said person. So, effectively what Pelosi is stating is that those nusance poor people are sucking our health care system dry. Now they'll instead be mandated to buy insurance they already can't afford. Or, go to prison for effectively being poor.
We have a predatory private health care system that is now being replaced with a predatory public health care system. Change you can believe in.
What ever happened to concepts of progressivism and conservatism which place the rights of the people at the center of Washington's debate? It's quite simple. As Republican and Democrat elitists, our overlords, have grabbed control of our country, we instead see liberalism and neoliberalism as the only two choices in Washington.
As one of the video commenters remarked, maybe we should send Congress to prison for getting our country in this situation and racking up trillions of dollars in debt. Which is the greater offense? Not being able to afford your health care premium or racking up tens of trillions of dollars in debt?
Thursday, November 12, 2009
Here It Comes
This brings us back to a point we have made on here before. The yammering ideologues citing Smoot-Hawley tariffs as a cause of the Great Depression are completely ridiculous. Just as today, global trade collapsed at the start of the Great Depression. Tariffs were a response to the race to the bottom of the barrel we have highlighted above. A strategy employed by all nations at the start of the Great Depression. Just as today. And many countries were more vigilant than others in their race to the bottom of the barrel because they had accumulated such substantial debts from World War I. In order to repay these international debts, they had to do anything possible to keep their economies humming. Even if that meant selling goods below cost. Sound familiar? Smoot-Hawley as a cause of the Great Depression is one of the biggest Big Lies of our time. A Big Lie perpetuated by ideologues and special interests and mouthed by idiots doing their will. It is completely ridiculous. Global demand had already evaporated and there was massive excess supply just as today - a dynamic we have written of for four years. So, embracing the same neoliberal economics as we see today, will the outcome be different? Is the recession over? Or are we witnessing more Big Lies?
Not only is China going to experience a depression but I have complete confidence the communist government will make exactly the wrong trade and economic decisions which will lead to maximum economic pain. And most likely semi-permanent to permanent flight of foreign capital and investment.
Wednesday, November 11, 2009
Goldman Sachs' Letter To The Editor1:55 PM links to this post
Toyota Bags Formula One
Quite some time ago we remarked that leisure and entertainment businesses were likely to see a seminal shift in coming years. I have had this discussion with friends and they have generally looked at me in disbelief when I have remarked compensation numbers in the leisure and entertainment industries could drop by 90% in extreme cases - a point we have made on here before.
People are simply well too naive about reality. Hollywood entertainers, professional athletes and others involved in the leisure business making $15, 20, 30 or more million a year are living through their own bubble that is simply not sustainable. People have become so accustomed to this dynamic over the past few decades that they don't stop to think about the unsustainable economics. I would classify this in the same vein of the advertising bubble we have written extensively about. ie, People are simply well too naive as to sustainable economics.
Tuesday, November 10, 2009
Senator Bernie Sanders Introduces Legislation To Break Up The Wall Street Mobster Monopoly
I have talked about this for nearly a year now but it remains unreported. Wall Street banks are likely not being broken up because they serve the state. They are a massive repository for new issuances of government debt. Wars, stimulus programs, funding massive foreign interventions and other policies which are related more to power and control need to be financed. With global trade collapsing and foreign entities unable to finance the U.S. deficit at its record levels, Washington needs to find domestic purchasers of its debt. The fact that Bernie mentions these mega banks are now substantially larger than before this crisis started creates an even larger repository for the Federal government to self-fund its own deficits without foreign purchasers. This is another dynamic also not clearly understood. The growing asset base of these banks also allows them to mint massive profits buy plowing enormous sums of money into a completely risk-free (conceptually) purchase of Treasuries. Get money at zero percent and invest it at 3.5% all day long. This dynamic allows these firms to continue to fund their Frankenstein financial market inventions as well.
Yet all of these dynamics and more are destroying the American economy. As we have said numerous times, it is Washington killing our economy. It is the President, the Congress, the Treasury, the Federal Reserve and anyone else who supports current policies. This surely is not malicious of intent, but is an unintended consequence of propping up these massive firms. In a world of finite capital, the U.S. government is crowding out the individual, the small business and even the large business for this country's resources. And because these firms are now effectively government-supported on every level, they too are crowding out capital which would otherwise support the operation of community banks and regional banks. What does that mean? We the People will continue to scavenge for capital and subsequently become poorer at the expense of the state. Bankruptcies will continue unabated. Unemployment will continue to rise. Small businesses will continue to fail. The economy will not recover.
Many people believe we are on the path of Japan and cite numerous meaningless comparatives including decades of low growth with low interest rates. That is absolutely incorrect. We are on the path to collapse without a change in economic policy. Japan's economy, unlike the U.S., was still a net producer of capital throughout their decades of comparable policies. And the global economy went without any substantial slowdown during their malaise thus providing a healthy outlet for their goods and services. So they could fund their government intervention. Today, comparatively, globalization is dead regardless of the rhetoric.
There are many solutions to our crisis . Solutions that mandate constructive government involvement. But current policy isn't one of them. Why would we expect it to be? As we have written Schumpeter told us ages ago that the only way to recover from economic crisis is to rid ourselves of the prior generation's foolish leadership and their faulty thinking which led to the collapse in the first place. And, indeed this collapse lies completely in the hands of elitists in government and business who have forsaken society's trust. They have forsaken We the People for morally bankrupt reasons. Were society enlightened to this fact, we would not consider any possible solutions involving a perpetuation of the status quo. But, in fact, all we are doing is perpetuating the status quo. Why? Because the status quo owns the microphone and the wealth taken from society in this great fraud. Wealth needed to control the microphone. Sound familiar?