Saturday, February 28, 2009
Tuesday, February 10, 2009
The Growing Army of Angry Men Whose Lives Have Been Destroyed by the Federal Government
One of the hardest things to deal with in the current economic depression is the disgusting hypocrisy of the U.S. congress, the new president, and the members of the Federal Reserve System. It is one thing to be told, as we all are, that we must hand over fat wads of our hard-earned money to these warmongering and thieving snakes or face jail terms, but one feels a whole new level of revulsion when these people make statements to the effect that they, and they alone, are in a position to "save the economy" by "creating jobs." These statements are made by people who have done virtually everything in their power to destroy the American economy over the last few decades, but who have now proclaimed themselves to be our saviors. Only the most naïve and unlearned among us could possibly be falling for the idea that a bunch of self-serving politicians, bureaucrats and bankers are going to "save" us from problems they have caused.
On its face, the idea that politicians, bureaucrats, and bankers could "save" the economy is laughable. These are people, after all, who live exclusively at our expense. That is, these are people whose entire livelihoods are dependent upon taking money away from productive people and spending it on themselves and their favorite wasteful projects. It's true that they do not all share the same ideas about how to spend the money they take from us. Some prefer to use it to blow up innocent people in foreign lands, while others simply want to take our hard-earned money without our consent and hand it over to other people. The bankers, on the other hand, merely content themselves with printing vast amounts of new money out of thin air that they either hand over to the Treasury Department, or gift to their other banker-buddies to lend out at a profit at our expense. Nevertheless, it should be crystal clear that these people do not actually produce anything themselves (except the bankers, who are very skilled counterfeiters of money). They take money from us through taxation and inflation, (and threaten us with severe punishments if we refuse to obey), and then spend every last penny of it – and more – on war, socialized boondoggles, and welfare. These are the people who would have us believe that they can "save" the economy? How exactly would they accomplish such a thing? More taxes, more idiotic socialized projects, more war, and more newly-printed green paper? Do these actions really seem likely to produce a vibrant and healthy economy, or do they seem more like the actions undertaken by the Supreme Soviet of the U.S.S.R.?
Wednesday, January 14, 2009
Obama Unveils New Grand Plan for the Economy
"Every economist I've ever heard of agrees what we need now is significantly more government investment to offset the negative effects of whatever it is that is happening," Obama said at his Monday press conference. "Accordingly, I and my team of advisors have developed a comprehensive plan that will shore up our financial institutions, put jobless Americans back to work, allow everyone in a house to keep it no matter what, rescue any failing bank or business, provide a hot meal to anyone who is hungry, improve the well being of all citizens, and give a puppy or kitten to every child who wants one.
"But Congress must put ideology aside and act now in a bipartisan manner before some other even worse stuff happens," he added, wiggling the fingers on both his hands to indicate "scary."
(read the rest)
Tuesday, December 30, 2008
Monday, December 22, 2008
Central Banking Revolution?
A quiet revolution in central banking is gathering speed, as the Federal Reserve ploughs ever deeper into the brave new world of unorthodox monetary policy and other central banks ponder how far they might have to follow.
The world’s central banks have already undergone dramatic changes since the start of the credit crisis more than a year ago. They have cut interest rates with unprecedented rapidity – in some cases to historic lows – and have increased bank reserves massively to meet heightened private sector demand for liquidity.
Brave New World?
Unorthodox monetary policy?
Dramatic changes?
Last time I checked, cutting interest rates, bailing out big companies, and "injecting liquidity into the market" are the Standard Operating Procedure. I'm pretty sure they did it in the 1930s... and the 1960s... and the 70s... and the 90s...
That's where all of America's money has gone (spent the last of it during the dot.com crash), and it's where Australia's budget surplus is going now.
The only thing different this time is that they're doing MORE of it... and they're making it worse.
A Capitol Christmas, by S.J. Masty
All year through the House
And the Senate you'd find
Not a smidgen of nous.
Were there a machine
That detected IQ,
One could run it a month,
Then return it as new.
Except for one person
Asleep in a corner,
A government watchman
Named Ermingard Horner,
Who woke up abruptly
And pointed her Glock
At a fat man who stood
By the grandfather clock.
Drop em!" she said.
He replied with a quake,
"Dear me! Do you want
"All the presents to break?"
As she patted him down,
She concluded, right quick,
The nocturnal intruder,
In fact, was Saint Nick
But inside his bag
Was no football, no ring,
Nor a toy nor a doll
Or new video thing,
Just pieces of paper
And pieces galore,
And they spilled from the sack
On his back to the floor
"What's this?" she demanded,
"Start telling me true!"
"Each," he confessed,
"Is a big I.O.U.
"For many a year
"Congress plundered the store;
"When they spent all they had,
"Then they borrowed some more."
"Till the lenders, exhausted,
"Collapsed in distress,
"Then the government cranked up
"Its vast printing press,
"Until every tree
"From Nome to Miami
"Was cut to print money
"For your Uncle Sammy."
Ermingard, being
Sufficiently bright,
Knew in an instant
That Santa was right.
And even today, she recalls
(With some chills),
The ladies room stalls
Stacked with ten-dollar bills.
The money was there for
(She found this alarmin')
The banknotes were worth less
Than White Cloud or Charmin.
Somewhere, she knew,
Politicians would gloat
That they'd picked her own pocket
To buy her own vote.
Then Santa sighed, "Presents?
"Let's all just forget it,
"Since cash is now worthless
"And no one gives credit.
"So, Christmas? Prepare
"All the kids for bad news,
"As I stuff their wee stockings,
"With cheap I.O.U.s"
He mumbled farewell
With a cynical laugh.
But she said, "I've a sandwich
"And you can have half."
He paused and he squinted,
Then smiled with a sigh,
And sat down beside her,
A tear in his eye.
He said, "Christmas can be,
"What we make it to be.
"Merry Christmas to you,
"Tuna salad for me."
Reprinted from the DC Examiner, by way of LewRockwell.com.
Sunday, December 7, 2008
A trend for all seasons...
1) Due to previous government regulation, the economy begins to tank.
2) The government promises to inject money in to the economy, thus making everything fine!
3) On hearing the news, investors loose some of their understandable skepticism. They begin investing again, and the stock market prices rise. Government says "Yay! Look at us! We'll make everything okay again, see?!"
4) The government injects the money.
5) The money is instantly lost to the regulations and resulting bad business practices, that were present before the bailout.
6) Investors, with good reason, loose hope. Stock markets continue to dive. Government says "Ho, hum, guess we didn't do enough."
7) Lather.
8) Rinse.
9) Repeat, ad collapsium.
Meanwhile, In China, Copycats.
China weighs new plans to boost economic growth
BEIJING – Chinese leaders began weighing possible plans Monday to expand a massive stimulus package with higher spending on health and social programs amid signs an economic slowdown is worsening.
The meeting of top planners also might consider proposals to boost exports and to inject government money into slumping Chinese stock markets, according to state media. The government has released no agenda for the meeting.
The meeting comes as Beijing tries to figure out how to get the most out of a 4 trillion yuan ($586 billion) package announced in early November meant to shield China from a global slowdown with spending on construction and other projects.
Optimism that the meeting will produce more steps to bolster the economy lifted stock markets in Hong Kong and Shanghai. Hong Kong's Hang Seng index surged 7.5 percent Monday, while the Shanghai Composite index was up 2 percent.
A friend of mine remarked to me: "It's almost like every country in the world is joining a giant, economic suicide pact."
And if China jumps, it pulls us all with it.
Friday, December 5, 2008
The Money Hole
In The Know: Should The Government Stop Dumping Money Into A Giant Hole?
Welcome, Hyperinflation, to your new home!
Just when I thought Great Rudd and the Ruling Class couldn't get any more stupid, they go ahead do something like this.
CHRISTMAS is coming, but the cupboard won't be bare. Millions of Australia's cash-strapped families, black and white, are about to get the biggest pay day of their lives.
The money, which comes under a Rudd government package to stimulate the economy, will begin to arrive from Monday.
The sums involved are considerable: parents will receive $1000 for every child in the family (the benefit is means-tested); single carers, pensioners and veterans will get $1400; coupled pensioners, carers and veterans will receive $2100. In some remote Aboriginal communities, where families live in extended kinship arrangements, between $10,000 and $20,000 will be deposited per household.
Luckily enough, Australia isn't in budget deficit yet (or so they tell us). First, some comments, then some maths.
1) This is tax money.
2) The report states that millions of families will receive this benefit.
3) The report further states that these families will be poor families.
4) For arguments sake, let's say that there are one million poor families, each with a single child. According to the article, these families will be given $1000 per child. That's another ONE BILLION dollar bite into the budget surplus. That number is very generous, as a lot of families have more than one kid, there's probably a lot more "poor" families than one million, and the calculation doesn't account for pensioners or veterans.
It's probably not a stretch to say that several billion dollars are going to be distributed in this scheme.
Now, you're probably thinking "So what?! Poor people get an extra buck! Isn't that a good thing?"
My answer would be: for the poor people, maybe, and ONLY in the short run.
Firstly (and you'll scoff at this) Lord Rudd is playing favorites by stealing from the rich (well, everyone, really) and giving to (only) the poor, in true socialist fashion.
Secondly, what happens when these several billion dollars enter circulation? An increase in the money supply. The direct cause of inflation. Prices are going to rise EVERYWHERE, so the benefit that the poor families gain at Christmas is going to be immediately mitigated when prices "stabilise" in January. So, the poor don't gain or loose anything, technically, and the slightly better off people just have to cop the price rise.
Thirdly, and finally, when you tally up this policy with all the other bits of government spending that Divine Rudd wants to introduce, you'll notice that the budget surplus is quickly disappearing. When it finally goes into deficit, we'll have to do what the Americans are doing. First, we'll have to borrow from the Chinese (but seeing as they've already lost all of THEIR cash in the US, they might be reluctant). When that avenue is closed, you know what they have to do? They have to PRINT the money. Poof! Whole budgets out of nowhere!
And the Weimar Republic comes home to Australia.
Oh, and if you think this COULDN'T happen in modern times, watch Mr. Mugabe put a scowl of disapproval on your mug: http://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe
Saturday, November 15, 2008
The G20 summit...
World Leaders Act on Economic Crisis
- New York Times, 15/11/2008
WASHINGTON — Facing the gravest global economic crisis in many decades, the leaders of 20 countries agreed Saturday to work more closely to reinvigorate their economies, but put off the thornier questions of how to overhaul regulation until next year, effectively giving a major assignment to the Obama administration.
Though the proposals were cast as ambitious reform, they mainly reflected steps that the countries were already undertaking. What remained to be seen was whether, working with a new White House, they will cast aside their political and economic differences to come up with dramatic changes.
Some pessimism in the second paragraph, there, as the Author correctly recognises the talk of "massive reform" as "let's do the same, only more so."
Friday, November 14, 2008
Down and down we go...
In other news, the old media is finally acknowledging that, yes, the entire world is going down with the captain of the ship.
There's a concerning trend in articles like those linked above, and most others like it.
"Stocks slump as investors abandon recovery attempt..."
"Worst retail sales in history..."
"Consumers showed fresh signs of distress..."
It's almost like they're saying that it's all our fault...
There's a reason no-one is investing: it's not worth it. There's a reason consumers aren't buying as much stuff as they used too: it's all over priced, and people can't afford it. I'd tell you whose fault I think it is, but that would give the game away...
This weekend also sees the G20 summit in Washington, where world leaders are going to gather to supposedly talk about the "new economic world order." I have a prediction about the G20 summit: all of these world leaders are going to get together and talk about how much they haven't done, and how much more they could do. They're going to decide to increase spending (like they need a summit to decide these things. *cough $700b cough*). They're going to decide to do the very things that got us into the situation where in now. You can't wake a dead horse by beating it. That's my prediction.
These people control the world, by the way.
Wednesday, November 12, 2008
STAY CALM!!! ALL IS WELL!!!!
Experts agree: everything's fine!!
Paulson says US bail-out working
- BBC News, 12/11/08
"The $700bn (£494bn) US bail-out package has already 'clearly helped stabilise' the financial system, US Treasury Secretary Henry Paulson has said.
But he added that there were still many challenges ahead and market turbulence was likely to continue for some time."
Challenges and market turbulence, like:
US stocks close nearly 5pc lower
- News.com.au, 13/11/08
"US stocks plunged overnight as global markets were rattled by further signs of recession in Europe and a shift in the US financial bailout strategy.
The Dow Jones Industrial Average plummeted 411.30 points (4.73 per cent) to finish at 8282.66 and the Nasdaq dropped 81.69 points (5.17 per cent) to 1499.21.
The broad Standard & Poor's 500 index slid 46.65 points (5.19 per cent) to 852.30.
Since Monday, the Dow has lost 7.4 per cent."
I'm just gonna go out on a limb here and say that maybe this bailout isn't helping. And maybe it'll make things worse. Consider it a prediction.
And an Australian addendum:
Australian market plunges to 4-year low
- ABC News, 13/11/2008
In a volatile day for Australian stocks, the local market has finished at a four-year low after it was unable to recover from a plunge of almost 5 per cent in the first hour of trade.
The All Ordinaries Index has finished the day 5.5 per cent lower at 3,672 points, and the ASX200 dropped 230 points, to 3,697.
The steep falls followed a 5 per cent dip on Wall Street overnight, after US Treasury secretary Henry Paulson decided to use the rest of the Government's bailout package on shoring up banks, rather than bad mortgages.
The last line is odd: it's like the old media thinks the bailout will work if only they could do the right thing with the money they printed. Halfway there, Old Media. Halfway to realising that the best thing Mr. Paulson could do with that money is burn it.
Don't Worry, Be Happy!
-----------------------
Australia can smile away the recession, says Treasury boss Ken Henry
- News.com.au, November 12, 2008
"THE threat of recession could disappear if we all put a smile on our face, the Government's top money man said today.
After two months of persistent bad economic news, Treasury secretary Ken Henry said the worst could be avoided if Australians simply cheered up.
'Fundamentally what is driving weaker economic outcomes globally at the moment is fractured confidence,' Dr Henry said. "
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