September, 2011

The Entitlement Frankenstein

The notion of entitlements has been carried far beyond that of a social welfare net. Entitlements are now overblown and unsustainable. They have been used as vote-buying schemes by politicians willing to promise anything to gain or retain office. They are no longer beneficial, but serve as disincentives that produce perverse behavior. This mindset is now so ingrained that it [...]

Bread and Circus Purveyors

Don Boudreaux describes President Obama’s abilities very nicely: He knows no more about the economic matters upon which he pronounces than does a soap-opera actor portraying a physician know about cardiology or obstetrics. Bryan Caplan presented the above quote in his post “Jackals in Retirement.” It rather nicely shows that our politicians are rather useless for anything other than plundering from [...]

The Washington Cesspool

The immorality of the US government should, by now, be apparent to most. Designed to be an independent referee, government is instead an active participant in the game. It has vested interests in outcomes including favorite winners and losers. The deterioration from independent referee to self-interested participant is not unique to the US. It is a natural tendency of government, [...]

Gold and Silver

As everything gets crushed, it is natural to get out of Mr. Market’s destructive path. Although there will be all sorts of conflicting advice and recommendations, standing aside for a while appears to be prudent. That doesn’t necessarily mean leaving completely markets of interest, but reducing positions. Those with precious metals are not immune from wealth destruction, although I like [...]

Geithner’s Whorehouse Bank

The deception and corruptness of our Federal Government slowly is being revealed. Much of it is a result of the investigation and analysis of bloggers. Under the hypothesis that sunlight is the best disinfectant, Bruce Krasting’s report on the Federal Financing Bank is reproduced below. The same nonsense is going on in most Federal agencies. The facade of government is erected [...]

Markets, Democracy and Socialism

The Telegraph had this to say about the debate over the welfare state: The truly fundamental question that is at the heart of the disaster toward which we are racing is being debated only in America: is it possible for a free market economy to support a democratic socialist society? On this side of the Atlantic, the model of a national welfare [...]

Princeton Economics, Not So Bad After All

Princeton economist Angus Deaton on the emotional aspects of discussing politics: “People appear to dislike politics and politicians so much that prompting them to think about them has a very large downward effect on their assessment of their own lives,” he writes. “The effect of asking the political questions on well-being is only a little less than the effect of [...]

Marc Faber Agrees Re Redd Fox’s “Big One”

I am glad to see that my analysis yesterday, Redd Fox’s “Big One?”, is in agreement with the views expressed in this video. Marc Faber has been ahead of the curve on our declining situation. He sees no reason for optimism.

Redd Foxx’s “Big One?”

As I write this, the Dow has dropped about 700 points in barely over one full trading day. Fed Chief Ben Bernanke spoke on Wednesday afternoon and markets did not like what they heard. Right before his announcement yesterday, the Dow was at 11,380. By noon the following day, it had fallen to 10,704. Bernanke announced a continuation of loose [...]

Economic Intervention Metastasizes Gangrene Here, There and Everywhere

I think the description by Peter Tchir is a reasonable analogy of the economic situation. Be forewarned, it isn’t pretty. But neither is our economic condition! It’s possible that the problems in sovereign debt in Europe continue to get worse rather than better, because we are treating the wrong “disease”.  Everyone has been talking about the risk of “contagion”.  That [...]