GOVEROTRAGEOUS: For the benefit of labor unions and corporations

Wednesday, August 18, 2010

Monopoly-Privilege Agents are Skilled at Verbal Legerdemain by Don Boudreaux on July 24, 2010

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Translation: “Ambassador Ron Kirk is committed to holding the interests of American consumers hostage to the interests of American corporations and labor unions. He is tough in his determination to ensure that any trade deals struck on his watch will shield politically powerful U.S. producers from the competitive consequences of free consumer choice.”

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The Gooferment is not our friend. It’s has its own agenda. That’s rewarding those who put money in the pockets of politicians and bureaucrats. Can anyone explain price controls — ceilings or floors — that benefits “We, The People”?

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TECHNOLOGY: Nuke power from Japan?

Thursday, October 29, 2009

Japanese firms to develop small nuclear reactors

Oct 24 01:08 AM US/Eastern

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Japan’s major nuclear reactor manufacturers have begun developing small nuclear power systems for both developed and emerging countries, a report said on Saturday.

Toshiba Corp. is developing an ultra-compact reactor with an output of about 10,000 kilowatts and has started procedures for approval in the United States, the Nikkei business daily said.

The new reactor, the Toshiba 4S, is designed to minimise the need for monitoring and maintenance, with an automatic shutdown function to ensure safety in case of problems, the newspaper said.

Toshiba plans to market the reactor first in the United States, while foreseeing demand from emerging countries in Southeast Asia and Eastern Europe as well as in Africa, it said.

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For America’s “lost generation” of nuke engineers, I’m sure the approval of this will really put a knot in their shorts.

At one time, America “owned” the nuclear engineering niche.

France gets 80% of its power from nukes; we get near zero.


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MONEY: The dollar is done

Monday, October 26, 2009

Dollar Forced to Abdicate by Peter Schiff

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To save our currency, the Fed must get very aggressive with interest rate hikes and reign in the supply of dollars that have flooded the world over the past few years. The federal government must also do its part by cutting spending, which means no more stimulus and no more bailouts. Undoubtedly, these actions will have unpleasant economic and political consequences. A student who studies harder may have to miss a party or two. A simple analogy, but unfortunately it is that simple.

*** end quote ***

BUT, (there is always a big butt), it will never happen.

The “patient” (i.e., the dollar) is a “dead man walking”. The only question is when.

The congress critters killed it. And, us.

Like the line from the movie “Red October”, “You killed us, you arrogant ass!”

Only in this case, it’s the political class.

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MONEY: UN says kill the dollar!

Tuesday, September 8, 2009

UN wants new global currency to replace dollar
The dollar should be replaced with a global currency, the United Nations has said, proposing the biggest overhaul of the world’s monetary system since the Second World War.
By Edmund Conway, Economics Editor
Published: 6:45PM BST 07 Sep 2009

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In essence, the report calls for a new Bretton Woods-style system of managed international exchange rates, meaning central banks would be forced to intervene and either support or push down their currencies depending on how the rest of the world economy is behaving.

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And, why are we in the UN? We’re financing this “barbara streisand” against our own self-interest. We “nuked” Sadam for suggesting oil should be priced in Gold not dollars. Let’s see if we do the same to the UN for a similar suggestion!

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MONEY: Dollar is in big trouble

Saturday, August 22, 2009

Sound Money: The Impossible Dream?
by Floy Lilley

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Debt: The US must borrow 46 cents for every dollar spent this year. Outstanding public debt as of 18 August is $11,704,322,903, 918. An estimated population of the United States is 307,209,243, so each citizen’s share of this debt is $38,127. The debt-to-GDP ratio is 82%. This debt will grow by a trillion dollars a year. The debt has to be rolled over every four years. That’s $240 billion a month to be skimmed off capital markets. The four largest budget items are wars, social security, Medicare/Medicaid, and interest on the debt.

*** end quote ***

How does the Republic get out of the mess that the congresscritters have created?

Inflation? Repudiation? What Chapter applies to the nation?

It’s clear we can’t meet our commitments. So what, or rather who, gets thrown under the bus?

Clearly the Chinese, and any one holding our debt. Senior citizens, pensioners, the sick and elderly.

Social security goes broke. What does that look like?


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MONEY: Hyperinflation

Tuesday, August 18, 2009,1518,641758,00.html
Germany in the Era of HyperinflationBy Alexander Jung

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During the hyperinflation in Germany of 1920s, the country’s currency, the mark, went crazy. The government of the Weimar Republic may have been able to clear its debts, but it came at the cost of the citizens’ savings. It’s an era that is still part of the national psyche today.
*** and ***

Take for example the family that sold its house to emigrate to America. On arrival at the port of Hamburg, they found that the money wasn’t enough to pay for their crossing — in fact, it didn’t even pay for their tickets back home. Then there was the man who drank two cups of coffee at 5,000 marks each, only to be presented with a bill for 14,000. When he asked why this was he was told he should have ordered the coffees at the same time because the price had gone up in between. And then there’s the story about the couple that took a few hundred million marks to the theater box office hoping to see a show, but discovered it wasn’t nearly enough. Tickets were now a billion marks each.

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And that kiddies is what faces us here in the USA in the near future.
But It CAN’T happen here!
Can it?
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MONEY: Recognize the dollar for what it is; an ongoing fraud

Thursday, July 23, 2009

MONEY: What is a dollar?

Tuesday, February 3, 2009

Fiat Law and Fiat Currencies – the Relic of Barbarians
by Lila Rajiva

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The free market arose wherever there were laws and systems like that – whether in Europe or Africa or Asia. One way to think about this difference would be to see it as the difference between a fiat money, like paper, and a real store of value, like gold. You can print all the money you want, but if there’s nothing to back it up, then you’re in a bit of trouble. Your creditors are unlikely to put much store in you as a credit risk, just as the world’s wringing its hands today over the dollar. Pretty soon, they come calling for their loans with cudgels and pitchforks.

Gold does not have the same problem, because there’s a limited supply of it. It has to occur in nature. It has to be found somewhere underground and then mined and refined. It’s an expensive business – that takes risk, time, and money. There are costs attached to it that someone has to pay. Paper money, on the other hand, can be printed any time you want. Just ask Ben Bernanke. He’s dropping it by the helicopter load from the clouds.

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They are “counterfeiting value” by printing more money electronically. It’s slight of hand. To understand, you have to understand the answer to the question: “What is a dollar?” and proceed from there.

The answer is it’s NOW an imaginary unit, backed by the belief that you can exchange a green peice of paper for something. A Keynesian ( will never talk about what the definition of money is. An Austrian ( will insist that the pricing mechanism in the economy have commodity money. It USED to be tied to gold.

Sadly, as an Austrian, I think you are in for hard times. O is going to “finance” 2T$ in current spending. By monetizing it. A fancy word for counterfeiting. And, the value of the dollar is going down even further.

To understand, you have to go to Robinson Crusoe’s island, that economist’s use to simplify ideas. A fisherman, egg gatherer, and a fruit gatherer are on the island. (Magic; don’t ask questions yet!) They barter between themselves. After a while, 1 fish = 2 eggs = 4 coconuts. Due to the relative difficulty of effort. But the fisherman and fruit gatherer don’t deal directly. The egg gather is the middle man. Then a banker arrives. He creates money so that the Fisherman can deal directly with the Egg guy. He uses seashells. Then the value equation is 1 fish = 2 eggs = 4 coconuts = 8 seashells. The evil banker after a while introduces more seashells into circulation by spending them. So he get more stuff. Similarly through out the ages, the King (Government) seeks to enrich itself that way. When the currency is gold coins, it’s much harder. (I first learned this when I saw an exhibit at the Smithsonian of French Francs over time. The French Franc of Louis I was a gold hockey puck; Louis XIV’s was a very thin button. Inflation!) When the currency is pretty green pieces of paper, it’s much easier.

So there you have how O44 is goign to spend 2T$ that we don’t have.

Basically, it’s a “tax” on anyone who has a dollar or dollar denominated assets. By adding a “seashell”, the value of all the other seashells is adulterated. Watered down.

So who get’s screwed?

The Chinese have 5T$. There’s a lot of dollars out there. The poor and people on fixed incomes (i.e., the purchasing power of their few dollars goes down) get less for their money.

Who makes out?

The US Government mostly. People who have “valuable stuff”. Commodities, commodity producers, land owners, people who produce stuff that others want.

So that’s how O will spend what he ain’t got.

He’s betting that before the inflation comes, the economy will “restart” and we won’t notice. (Think LBJ and Carter!) It worked for Kennedy because he lowered taxes on the productive class and everyone was motivated to get to work. His quote was: “A rising tide raise all boats!”

Sadly, I don’t see O or his staff being that smart.

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MONEY: H.R. 2755: Federal Reserve Board Abolition Act

Sunday, December 7, 2008

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You might also ask your US Representative to co-sponsor the Bill to Abolish the Fed. So far Ron Paul’s Bill has no co-sponsor. What does that tell us?

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[JR: That politicians are happy with the blank check that the current system provides them? ]

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Federal Reserve Board Abolition Act – Abolishes the Board of Governors of the Federal Reserve System and each Federal reserve bank.

Repeals the Federal Reserve Act.

This bill is in the first step in the legislative process. Introduced bills go first to committees that deliberate, investigate, and revise them before they go to general debate. The majority of bills never make it out of committee.

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MONEY: Made in the USA?

Tuesday, December 2, 2008

Ignorance of Money and the Rejection of Austrian Economics

by William L. Anderson

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Austrian economists and the intellectual tools they bring to the table are needed more than ever, yet the response of the economics profession has been to be even more aggressive in denouncing Austrians as “quacks” and “charlatans” and making sure that they are excluded from any academic and political discussions about this crisis. However, if one wishes to see just how superior the Austrian position has been, the best proof is to watch clips

of Peter Schiff (Irwin’s son), who is a well-known investor and fund manager, debate mainstream economists and other “financial experts” by using the Austrian analysis against their viewpoints. Schiff clearly understands the nature of the crisis and how to stop the bleeding and cure the “patient”; the others blindly stumble about, citing the “expertise” of economic theories that lead to nowhere.

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“America at one time flooded the world with high quality low cost goods!”

Sums up the problem.

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JOBFINDING: Somerset County NJ hedge fund client is looking to hire

Monday, November 24, 2008

My Somerset County NJ hedge fund client is looking to hire a FULL TIME EMPLOYEE. There is as yet no spec but he is looking for someone with CURRENT/VERY RECENT FOREIGN EXCHANGE applications either as an Applications Development Manager or as a Project Manager. MUST COME FROM A .NET ENVIRONMENT. An appropriate comp package will be offered to the right candidate.

Sorry but they will not consider candidates without strong F/X and .NET background.

Jack M Schwartz

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