February, 2010

No End to Economic Stupidity

We know there is virtually no business experience amongst the President’s advisors. That has been documented in various places. Yet that could have been inferred  from the number of wrongful policies that have been proposed or implemented. There are so-called economists in the Administration. Larry Summers, for example, is a legend amongst the economic community, or at least in his [...]

Crowding Out Your Future

“Crowding out” is an effect claimed to occur when governments run deficits and have to borrow to finance the deficits. It refers to the government using funds via borrowing that otherwise would go to private borrowers. Hence, they are “crowding out” the private borrowers. In normal times, when government deficits are small relative to the economy, crowding out probably has [...]

2010 will be a watershed election

The following appeared on American Thinker today. An expanded article dealing with the same topic will soon be posted at Monty Pelerin’s World. February 27, 2010 2010 will be a watershed election Monty Pelerin Public concern for the sustainability of our fiscal condition and way of life is rife. Yet, the political class is unwilling or unable to respond. Inaction [...]

Tough Guy Bernanke Blows Smoke

Tough Guy Bernanke Blows Smoke Fed Chairman Ben Bernanke appeared before Congress this week wearing his “bad guy” face. I did not watch his testimony either day. Apparently, based on news reports and blogs, nothing of significance happened on the second day. The Washington Times reported on Bernanke’s Wednesday testimony: With uncharacteristic bluntness, Federal Reserve Chairman Ben S. Bernanke warned [...]

The Claude Rains Recovery

“No Recovery?” In the best Claude Rains fashion, “I am shocked, shocked!” There is no economic recovery, and there will be no economic recovery this year and probably not next. Yet the media, mainstream economists and the Administration insist we are in the midst of one. Things are definitely getting better, at least according to them. This concerted propaganda effort [...]

ObamaCare in Pictures

The unpopularity of Obamacare continues. The image to the right, obtained from the American Thinker site, provides visual evidence of what most Americans sense. Rube Goldberg would be proud of this contraption. Of course his health did not depend upon it.

FED Bunkum

A Wall Street Journal article reported: “The Treasury said it will borrow $200 billion and leave the cash proceeds on deposit with the Federal Reserve, reviving a program that will make it easier for the Fed to raise interest rates when the time comes.” I had to read that sentence several times to try and understand what it said. I [...]

One of Our Banks is Uneasy

China increasing their sales of US Treasuries cannot be good news. Ambrose Evans-Pritchard writing in the Telegraph speculates that the sales are being used as a foreign policy tool to pressure the US. Whether or not that is the case, the US is vulnerable and dependent on China to finance its huge deficits. Any sign of China cutting back or [...]

Obama’s “Ides-of-March” Moment is Near

In Jimmy Carter’s reign, the Wall Street Journal editorialized about “Ratcheting to Ruin.” The title derived from the fact that each cycle high in unemployment was higher than previous ones, and each cycle high in inflation was also. “Stagflation” was coined to describe what up until then was believed to be impossible in the Keynesian world. This period ushered in [...]

What Crisis is Being Solved?

According to calculations by Robert Barro, Harvard University economist, the stimulus package harmed the economy. Mr. Barro, concluded in the WSJ: … viewed over five years, the fiscal stimulus package is a way to get an extra $600 billion of public spending at the cost of $900 billion in private expenditure. This is a bad deal. The fiscal stimulus package [...]

Marco Who?

Who is Marco Rubio? It is likely few know. More inside the state of Florida are learning his name, much to the dismay of incumbent Republic Governor Charlie Crist.  Latest polls suggest that Crist will not survive the primary for re-election. Good news or bad news for Republicans? Time will tell. It seems that it is bad news for incumbents [...]

History: Monetary Cranks

Image via Wikipedia “Monetary Crank” was a derogatory term used in the past to refer to crazy monetary theories and/or schemes. Its use has fallen out of favor, yet its applicability today is as relevant as it was in the past. Unfortunately what used to be subsumed under the term, now appears to be considered normal monetary policy. Lawrence Reed [...]