ECONOMICS: What will trigger an “Economic Depression”?

Friday, July 29, 2016

https://www.lewrockwell.com/2016/07/no_author/america-needs-old-fashioned-depression/

America Needs a Good, Old-Fashioned Economic Depression
By Jay Zawatsky The National Interest
July 25, 2016

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Yes, central bankers can print currency units, but not food, energy or other commodities necessary for sustaining life. As basic commodities become more scarce or are priced out of the reach of average folks, wars, riots, rebellions, diseases and repressive governments will result. All of this human suffering will be the progeny of ZIRP, QE, and NIRP, which in turn are the progeny of the replacement of the gold standard by the Ph.D. standard.

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If we stipulate that this is good “economic medicine” and central banks have no incentive to stop “printing currency units”, then what is the trigger for a depression? Or what is the recognition factor that wakes up “We, The Sheeple” to the reality of one big ugly “economic” chicken coming home to roost.

In Venezuela, it had to be the unavailability of toilet paper at any price.

What will it be here in the USA? 

Since “printing the currency units” will lead to inflation, it’s important to hide that fact from “We, The Sheeple”.

But sooner of later, the inputs to production will be bid up and that has to be reflect in the price to the end consumer. At some point, the outputs can not be produced for a profit and compensate for the risk involved.

So when the shelfs begin to be missing “stuff”, that’s the trigger.

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ECONOMICS: Krugman is Obama / Clinton cheerleader

Monday, July 18, 2016

http://contrakrugman.com/ep-43-krugman-says-investors-have-given-up-hope-so-what-happened-to-that-obama-recovery-paul/

Ep. 43 Krugman Says Investors Have Given Up Hope…So, What Happened to that Obama Recovery, Paul?
16 July 2016     |     Tom Woods  

This week, Krugman considers several possible explanations for why long-term interest rates are so low around the world. The one he settles on: investors have concluded that the weak economy is the new normal, so to speak, so they’re willing to accept low yields. But this explanation contradicts Krugman’s repeated insistence that the Obama recovery is stronger than ignorant right-wingers give it credit for. Which is it?

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If “economics” is a natural science — which I believe it is, then how can it’s “laws” be ignored without consequences.

Imagine physics if the speed of light was not a constant?

Imagine chemistry if elements’ characteristics were ignored.

Imagine math if π was published as 3.14 exactly. 

Chaos!

Economics’ supply and demand is an observed logically consistent “law” (i.e., lower your price and people can buy more; raise your price and the opposite happens).

Interest rates are a reflection of people’s time preference. Not what the Gooferment says it is.

Argh!

When the FED just “prints” money, people make terrible decisions!

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ECONOMICS: $15 minimum wage

Monday, July 11, 2016

http://www.foxnews.com/politics/2016/07/09/democratic-party-platform-calls-for-15-minimum-wage-in-win-for-sanders.html

DEMOCRATIC CONVENTION
Democratic party platform calls for $15 minimum wage in win for Sanders
Published July 09, 2016  FoxNews.com

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Sen. Bernie Sanders’ effort to shape the Democratic Party’s election platform scored a major victory Friday with the approval of an amendment calling for increasing the federal minimum wage to $15 per hour.

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Haven’t heard anything this stupid since the bit about Alabama setting the value of pi to be the “Biblical value” of 3.0!

Seriously though, how can a major political party defy the LAWS of economics?

It’s as if they think that, like King Canute, they can change the laws of the physical Universe.

The Laws of Economics are as real as any of the other laws of the physical Universe like the Law of Gravity.

Argh!

How STUPID can the average American voter be to vote for them?

Argh!

http://www.snopes.com/media/notnews/pi.asp

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This wonderful bit of creative writing began circulating on the Internet in April 1998. Written by Mark Boslough as an April Fool’s parody on legislative and school board attacks on evolution in New Mexico, the author took real statements from New Mexican legislators and school board members supporting creationism and recast them into a fictional account detailing how Alabama legislators had passed a law calling for the value of pi to be set to the “Biblical value” of 3.0. 

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ECONOMICS: Social Security “Insurance” Bankrupt

Sunday, July 3, 2016

http://www.economicpolicyjournal.com/2016/06/scathing-new-report-shows-just-how.html

WEDNESDAY, JUNE 29, 2016
Scathing New Report Shows Just How Bankrupt Social Security Really Is
By Simon Black

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Last week, a group of analysts published an astonishing report about the future of Social Security in the United States, and their remarks were nothing short of damning.

According to their calculations, for example, these analysts claim that Social Security is already running a huge deficit to the tune of tens of billions of dollars each year.

In fact, this Social Security funding deficit has been taking place for several years now, and it’s actually accelerating. So the problem worsens each year.

*** and ***

Don’t get me wrong– I don’t mean “fix Social Security”. Oh no. That program is toast.

I’m talking about fixing this for yourself.

Retirement is one of those life events that is completely predictable. We know it’s going to happen.

And with a little bit of education, planning, discipline, and execution, we can vastly influence the outcome and prevent any major catastrophe from interfering with our goals.

You can dramatically boost your own nest egg, for example, and have much greater say over your retirement assets by setting up a structure like a solo 401(k) or a self-directed IRA.

It also makes sense to invest in your financial education; learning more about investing will clearly be beneficial in boosting your returns, and this can have a profound effect over time.

Especially if you’re younger, increasing your average return by just 1% over the course of 20-40 years can add up to hundreds of thousands of dollars in additional retirement savings.

You may also want to consider retiring abroad where you can live the lifestyle you’ve always wanted at a fraction of the price, and substantially stretch the time and value of your retirement savings.

Look, I’m convinced that Social Security will become a national emergency some day. Just remember that since its demise is conspicuously predictable, the impact on your life is completely preventable.

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Social Security Insurance is like a Ponzi scheme.

At least the Ponzi victims made a free choice to “invest” in the scheme.

Every “worker” today has no choice but to accept an “investment” with an estimated negative return of between of 2 and 15%.

Further it’s a wealth transfer from poor minority men to rich white women.

So, why do we still have this racist scam.

Set people free to save for their own retirement.

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ECONOMICS: 2% inflation = 47 cents of purchasing power after 30 years

Tuesday, May 17, 2016

http://contrakrugman.com/ep-35-debt-default-good-or-bad/

Ep. 35 Debt Default: Good or Bad?
15 May 2016     |     Tom Woods     |    

You’ll never guess: Krugman contradicts himself this week, but only Bob Murphy, who knows Krugman’s columns inside and out, caught him. This week the topic is whether it’s a good idea at some point to repay the national debt at less than face value. Krugman is horrified, so maybe it’s a good idea….

Krugman Column“The Making of an Ignoramus” (May 9, 2016)
“Keynesians on Treasury Default: Depends Who’s in the White House,” by Robert P. Murphy
“Trump’s Right — Paying Back the National Debt with ‘Discounts’ Is Already Official Policy,” by David Stockman
“Repudiating the National Debt,” by Murray N. Rothbard

Related EpisodeEp. 33 Krugman and Hamilton Sitting in a Tree

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Key takeaway: 

If the Fed does meet its target inflation rate of 2%, then arithmetically over thirty years your dollar’s purchasing power is down 53%.

It’s a silent theft of your wealth.

Good luck saving with that scenario. Back to the analogy — what do you want find a pirates chest full of: US “dollars”, Confederate dollars, or gold coins?

Argh!

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ECONOMICS: One great reason to raise the minimum wage

Monday, May 16, 2016

http://tomwoods.com/podcast/ep-659-afraid-of-president-trump-how-about-presidents-in-general/

Ep. 659 Afraid of President Trump? How About Presidents in General
12th May 2016
Tom Woods

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Michael Malice makes his triumphant return to the show with a discussion of a possible President Trump, and why Trump Derangement Syndrome seems to make people forget how bad the other presidents have been.

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Michael Malice hit a great reason to raise the minimum wage.

Get the stupid people who screw up your order out of the process.

Look at Wendys putting in the kiosks.

Wawa and QuickCheck has.

Feel sorry for the unemployable.

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ECONOMICS: So much for a “great economy”!

Friday, May 13, 2016

https://www.lewrockwell.com/2016/05/michael-snyder/global-depression-begun/

Rail Traffic Depression: 292 Union Pacific Engines Are Sitting In The Arizona Desert Doing Nothing
By Michael Snyder
The Economic Collapse
May 11, 2016

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Because rail traffic is down so dramatically, many operators have large numbers of engines that are just sitting around collecting dust.  In his article, Wolf Richter shared photographs from Google Earth that show some of the 292 Union Pacific engines that are sitting in the middle of the Arizona desert doing absolutely nothing. 

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All the politicians and bureaucrats squawking about the “great economy” can’t make it so.

Argh!

What we need is to unleash the entrepreneurs.

* A ten year moratorium on new regulations, laws, tax policy changes, and other Gooferment diktats.

* A 10% tax rate for individuals and corporations.

* Ten years of zero Gooferment deficits.

* and put all mandates and liabilities must be put on a track to be fully funded in 10 years.

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