ECONOMICS: The FED is very political and left-leaning

Thursday, January 28, 2016

Market Tanking After Fed Pricked Their Own Bubble
By Samuel Bryan
January 26, 2016

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“I think [Yellen] wants to elect Hillary Clinton. She doesn’t want to hand the White House over to Republicans or Donald Trump. I think she doesn’t want to have happen to Hillary what happened to John McCain. When the wheels came off the bus in the last year of the Bush administration, a Republican had no chance. Obama’s whole claim to fame is that he inherited a disaster and now everything is great. The truth is he inherited a disaster and now it’s a bigger disaster…

*** end quote ***

It’s a shame because if we had a “true told standard”, the politicians could not mess with the “money” or the interest rate.

The boom ’n’ bust cycle is caused by the mistakes (what the Austrian School of Economics calls “malinvestment”) of entrepreneurs, investors, and corporate executives. Look at the empty cities that the Chinese have built for bad decisions.

When an entrepreneur, using his own capital, makes a bad decision, they bear the damage.

When the politicians and bureaucrats make a bad decision, it’s the taxpayers and Joe-Sixpack who are hurt.

Look at TARP which was passed to by distressed mortgages and allow Joe-Sixpack to stay in his home and work it out. Instead, it “magically” was transformed into a bailout for Wall Street and the Big Banks. They paid out big bonuses to their executives and, together with those executive, made big contributions to the politicians, their PACs, and their parties — both of them!

Argh! And, you wonder why I am cynical about all of them?

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ECONOMICS: Cardboard and skyscrapers are pointing to a down economy

Tuesday, January 5, 2016

Will 2016 Be the End of the Current Skyscraper Boom?
By Mark Thornton
January 2, 2016

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The important thing to remember is that skyscrapers do not cause economic crises. Rather they are just a very noticeable example of the distortions taking place throughout the economy when interest rates are kept artificially low by the central bank.

In addition to record breaking skyscrapers, there are many less perceptible changes taking place. Entrepreneurs are building bigger, longer term projects and production processes. Relative prices, i.e., interest, land, capital, and labor prices, are being distorted. Technology, nearly everywhere, is on the fast track. The economy is booming.

*** end quote ***

And like the recent fire and two reported elevator crushings, I’m not sure that I want to be in “skyscrapers”. Or anything more than two or three stories. Maybe I’m getting old and fearful.

A recent conversation with a garbage executive confirmed that the “cardboard index” had collapsed. Despite Amazon from single handedly dropping all manner of “stuff” wrapped in cardboard, the recycling prices paid for cardboard had collapsed. This is an indication of economic activity.

So, as the doom ’n’ gloomer in the peanut gallery, I’d urge financial caution and lower expectations.

The world has become a lot more dangerous and the US has become even more divided on personalities and issues. 

So fellow turtles, pull in your neck and wait the storm out.

It’s gonna get ugly out there.

“Gentlemen, prepare to defend yourselves!” Sergeant Major Basil Plumley (played by Sam Elliott): [about to face an onslaught of attacking NVA soldiers]

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ECONOMICS: No surprise — no growth in the Pepuls Republik of Nu Jerzee

Monday, June 15, 2015

New Jersey’s Economic Growth Among Country’s Worst: New Report
New Jersey’s gross domestic product grew a mere 0.4 percent in 2014, ranking 46th in the nation.
By TOM DAVIS (Patch Staff)June 13, 2015

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New Jersey’s economy is barely ticking upward, with its growth ranking near the bottom in 2014 – and falling far below the national average.

New Jersey’s gross domestic product grew a mere 0.4 percent in 2014, ranking in a three-way tie for 44th in the nation, according to the Bureau of Economic Analysis. The nation’s real GDP grew 2.2 percent in 2014 after increasing 1.9 percent in 2013.

The state’s growth slowed from previous years, In 2012, the GDP grew 2.5 percent, and in 2013, there was 0.8 percent growth.

The state had the slowest growth of any state in the Mideast region, way behind New York’s 2.5 percent GDP growth.

Gordon MacInnes, president of New Jersey Policy Perspective, a liberal Trenton-based think tank, told NJSpotlight that the state needs to invest more in education, public transit and transportation infrastructure, as well as colleges and universities.

“You can’t create a strong economy and create jobs without a strong foundation,” MacInnes said told the publication.

*** end quote ***

“Invest” my <synonym for donkey>!

Spending more money — stolen from over taxed residents of the Pepuls Republik of Nu Jerzee — will not spark any type of growth. Except it the taking class of teachers’ unions, other Gooferment unions, politicians, and bureaucrats!!!

Cut the minimum wage.

Cut the corporate and individual tax rates.

Convert Gooferment pensions to 401s like private businesses are doing.

Introduce a meaningful school choice voucher program.

Reduce education expenses by consolidation of the 600+ “school districts” into 21 county ones.

UNWIND the regulatory state.

End the “(pseudo) War on (some) Drugs” and pardon all non-violent drug offenders.

Eliminate property taxes to fund Gooferment Skrules. (Eliminate Gooferment Skrules entirely!)

And, my personal favorite, end the inheritance tax.

THEN watch the Stte become a magnet for people, business, and happiness!


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ECONOMICS: Do “the poor stay poor, the rich get rich”?

Wednesday, June 10, 2015


*** begin quote ***

Leonard Cohen – Everybody Knows

Everybody knows that the dice are loaded
Everybody rolls with their fingers crossed
Everybody knows that the war is over
Everybody knows the good guys lost
Everybody knows the fight was fixed
The poor stay poor, the rich get rich
That’s how it goes
Everybody knows

*** end quote ***

Hmm, not so sure that “poor stay poor, the rich get rich” is accurate here in America. There are economic studies that show tremendous movement between the financial strata. WHile there are some people who are born poor and die poor, but that’s not cast in concrete like in some countries. And, rarely does a “family fortune” survive three generations.Also, how does one explain the immigrants from Asia and India who arrive with nothing and wind up with thriving businesses in a few decades. #Tom Woods

Ep. 298 Income Inequality: Non-Solutions to a Non-Problem
4th December 2014
Tom Woods
Nineteen ways income redistribution harms society.

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ECONOMICS: Forget gay marriage; is marriage over

Sunday, April 26, 2015

Why Men Won’t Get Married Anymore
Women complain chaps today won’t settle down. Sorry, ladies, but it’s all your fault, argues a wickedly provocative new book
By Peter Lloyd
Daily Mail
April 21, 2015

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When it comes to marriage, men are on strike.

Why? Because the rewards are far less than they used to be, while the cost and dangers it presents are far greater.

‘Ultimately, men know there’s a good chance they’ll lose their friends, their respect, their space, their sex life, their money and — if it all goes wrong — their family,’ says Dr Helen Smith, author of Why Men Are Boycotting Marriage, Fatherhood And The American Dream.

‘They don’t want to enter into a legal contract with someone who could effectively take half their savings, pension and property when the honeymoon period is over.

‘Men aren’t wimping out by staying unmarried or being commitment phobes. They’re being smart.’

*** end quote ***

This is a scary trend. That will remake society.

It’s part of the trend that makes the woman rich out of any marriage. 

Palimony was just the first step.

Used be that divorce was a Hollywood thing.


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ECONOMICS: Pulling up the lower rungs of the economic ladder

Wednesday, April 22, 2015

Minimum Logic, Maximum Straw
by DON BOUDREAUX on APRIL 18, 2015

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What minimum-wage hikes do unleash, however, is devastation upon a relatively small number of largely invisible workers – workers who are the least skilled and most disadvantaged.  Raising the minimum wage destroys jobs for many of these poor workers while making the jobs of other such workers more onerous.  But because these workers are so relatively few in number, their suffering, while very real, is easy to miss when looking at the aggregate data.  This fact explains why some – by no means a majority – of minimum-wage studies (particularly those that examine only short spans of time) find no negative employment effects.

*** end quote ***

Minimum wage “laws” are devestating to the poor, minority, low income, and senior citizens.

Why are they pushed?

Cui bono.

How many of the salaries of union and “public service” jobs are tied formally or informally to the minimum wage?

Of all the stupid legislation, this ranks right up there with the dumbest of the dumb (i.e., rounding off Pi; time zones; etc.).


ECONOMICS: Dietary Supplements are cheap insurance

Friday, November 28, 2014

Dietary Supplements May Reduce Healthcare Costs
Posted on Nov. 10, 2014, 6 a.m. in Healthcare and Public Policy Dietary Supplementation 

Dietary Supplements May Reduce Healthcare Costs

Hospitalizations for all U.S. adults over the age of 55 with coronary heart disease (CHD) cost the United States in excess of $64 billion in 2012. However, new research suggests that regularly taking certain dietary supplements may help to cut the number of hospitilizations for CHD, and thus also cut expenditure.

Christopher Shanahan and Robert de Lorimier, PhD, examined peer-reviewed, published studies that looked separately at relationships between omega-3 supplement intake and the risk of a CHD-attributed event, and B vitamins intake and the risk of a CHD-attributed event. The researchers then projected the rates of CHD-attributed medical events across U.S. men and women over the age of 55 with CHD and applied a cost benefit analysis to determine the cost savings if people in this targeted population took omega-3 supplements or B vitamin supplements at preventive intake levels.

Results showed that if every high-risk person (U.S. adults over 55 with CHD) in the target population were to take omega-3 supplements at preventive intake levels daily, there would be an average of $2.1 billion in avoided expenditures per year and a cumulative of $16.5 billion in avoided expenditures between 2013 and 2020.

Whilst if every high-risk person in the target population were to take B vitamins at preventive intake levels daily, there would be an average of $1.5 billion in avoided expenditures per year and a cumulative of $12.1 billion in avoided expenditures between 2013 and 2020.

“Many dietary supplement products are available in the market today that have been shown to have positive effects on heart health through associated clinical studies…Thus, the potential decrease of total health care expenditures in the United States is a strong argument for the daily use of dietary supplements,” the authors said. “This is a relatively low-technology, yet smart, approach that can be used by consumers, physicians, employers, and policymakers as a means to reduce personal and societal health care costs.”

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BUT of course, there’s no opportunity for Big Pharma to make big profits. And then be able to make big “campaign contributions”.

The big winnerw would be the poor victims of disease and the Taxpayer.

And we know where that ranks in the priority scheme.

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