Monty Pelerin's World

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Reasonable Summary of Where We Are and Where We Are Going

Martin Weiss presents a reasonable description of what has happened and what is coming.

His presentation is ultimately a sales pitch, but I recommend watching it for a clear presentation of how we got to our present condition and what likely follows.

I do not endorse his company. I have no experience or contact with Mr. Weiss. I do believe he provides valuable information in his video. As always, consult your financial advisor before taking his or anyone else’s advice.

America’s “Soft” Side

Mark Steyn, in a column about President Obama having his own Jimmy Carter “malaise moment,” discusses what it means for the country to have gone “soft:”

This is a great, great country that got so soft that 53 percent of electors voted for a ludicrously unqualified chief executive who would be regarded as a joke candidate in any serious nation. One should not begrudge a man who seizes his opportunity. But one should certainly hold in contempt those who allow him to seize it on the basis of such flaccid generalities as “hope” and “change”: That’s more than “a little” soft. “He’s probably the smartest guy ever to become president,” declared presidential historian Michael Beschloss the day after the 2008 election. But you don’t have to be that smart to put one over on all the smart guys. “I’m a sap, a specific kind of sap. I’m an Obama Sap,” admits David Brooks, the softest touch at the New York Times. Tina Brown, editor of Newsweek, now says of the president: “He wasn’t ready, it turns out, really.”

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 someone becoming unemployed …”

The results seem strange in the sense that the emotional effect of losing one’s job would appear to be much worse than discussing the modern-day equivalent of Al Capone’s thugs. The data and methodology were not provided in the summary article.

Deaton is from Princeton, the same place that harbors Alan Blinder and Paul Krugman and spawned Ben Bernanke. Perhaps the University now believes diverting the efforts of their economists is now a more productive and less embarrassing endeavor than having them ply their trade. Or, perhaps Princeton economists believe they can solve any problem, whether it is in their field, related to their field or outside their field.

At any rate, it would seem that Princeton has other departments eminently more qualified to analyze and comment on such matters. Surely the self-renowned, public nusisance, Cornel West would be able to shed light on this issue.

Angus Deaton

Curious, I decided to learn a bit about Professor Deaton’s background. His self assessment appears quite proper and normal:

I am the Dwight D. Eisenhower Professor of Economics and International Affairs at the Woodrow Wilson School of Public and International Affairs and the Economics Department at Princeton University. My main current research areas are in health, wellbeing, and economic development.

I am a British citizen, and previously taught atCambridge University and the University of Bristol. I am a corresponding Fellow of the British Academy, a Fellow of the American Academy of Arts and Sciences, and of the Econometric Society and, in 1978, was the first recipient of the Society’s Frisch Medal. I was President of the American Economic Association in 2009.

Cornel Wests

Then I decided to check out the background of Cornel West:

… (born June 2, 1953) is an Americanphilosopherauthorcriticactorcivil rights activist and prominent member of the Democratic Socialists of America. West is a 1973 graduate of Harvard University and is currently employed as a Professor at Princeton University, where he teaches in the Center for African American Studies and in the Department of Religion. West is known for his combination of political and moral insight and criticism and his contribution to the post-1960s civil rights movement. The bulk of his work focuses on the role of racegender, and class in American society and the means by which people act and react to their “radical conditionedness.” West draws intellectual contributions from such diverse traditions as the African American Baptist Churchpragmatism andtranscendentalism.

Perhaps Princeton is allocating their manpower properly after all. It appears they are choosing, at least in this case, the allocation that will do the least damage to society and their own reputation.

Solving one puzzle only raises a bigger one — Why are parents paying huge dollars to “educate” their children at Princeton?

That will have to wait for some other day.

President Empty-Suit

President Obama came into office a mystery. Similar to the mythical Bagger Vance, he appeared out of the mist. No one knows where he came from (or was born) or much of his past. Even places he claims to have been, there are few if any who remember him. For one so blessed with charisma, that is very strange.

The media seems completely disinterested about Obama’s past and why he has gone to such great lengths to hide whatever of it he could.

Slowly, however, things leak out. Nothing is very definitive. There is no real birth certificate, college records, explanation of a social security number issued from a state where Obama never resided, etc. etc. There almost appears to be a fear among the press and political opponents to question these issues.

Jack Cashill is an exception. He has furrowed out information that others don’t want to find. Even when he uncovers something, the mainstream media has no interest in reporting or pursuing it. Perhaps they have too much credibility wrapped up in their support of this man. Perhaps they are afraid to report what they know. Whatever it is, it is not natural or normal. It is downright eerie and likely dangerous.

Cashill’s latest article on American Thinker deals with one of the pieces of evidence that escaped being buried in the hidden memory hole. It is a letter written in 1990 to the Harvard Law Review advocating affirmative action. It is especially revealing in the sense that it is perhaps the only authentic piece of Obama’s writing (I discount his “authored” books). Cashill describes the letter:

The response is classic Obama: patronizing, dishonest, syntactically muddled, and grammatically challenged.  In the very first sentence Obama leads with his signature failing, one on full display in his earlier published work: his inability to make subject and predicate agree.

Perhaps I was fortunate (or unfortunate) to have had demands made upon me during my early schooling. My English teachers from eighth grade forward would not have tolerated the grammar in the letter. Perhaps Obama was also fortunate or unfortunate enough not to have had such demanding teachers. Yet he went past high school into the upper tiers of academia. Supposedly he went to Columbia. Then he went on to Harvard Law School. How could this be? Have these colleges deteriorated so much that someone with such obvious flaws could graduate? Was he just passed because he was a minority necessary for affirmative action quotas and diversity?

To even ask the last question is to tread on sacred ground as Mr. Cashill points out:

… who would challenge Obama’s obvious talent — or that of any affirmative action beneficiary — but those blinded by what Obama calls “deep-rooted ignorance and bias”?

Well, I would. It is not politics or race that motivates such a question. It is disappointment in the media, the voters and the institutions of this country. Is it possible that we have so dumbed-down everyone and everything that the highest office in the land can be occupied by a man who did not learn enough English to pass prior years public high school standards?

Dancing With The Stars, American Idol and Jersey Shore pass for culture in today’s world. Obama passes for educated. There is a parallel here.

Obama is little more than an opportunist, a political grifter. He is an unpolished ideologue, brainwashed in socialist beliefs. His capabilities appear to be extended filling out his brackets for the NCAA basketball tourney or planning his next vacation. He is no leader; he is a fraud. When he writes his next autobiography (it will be claimed to be his third), it should be entitled “The Sting.”

As big a problem as he is, our society elected this fraud. We can correct the first mistake in 2012, but I don’t know how we remedy what has become of society.

 

Obama’s Self Image Destroys His Presidency

The power of the Presidency is nowhere near as great as Obama believes it to be or would like it to be. Nor is his charisma. His presidency, to the extent it had any chance to succeed, is failing because of both beliefs.

Obama’s confidence in his powers of persuasion and charisma appear unlimited. Unfortunately, many citizens have seen through his shtick, making his behavior appear pruning, self-centered, egotistical and immature. During the presidential campaign, he was an extraordinary marketing success. But as they say in show biz “he has no legs.” Once tried, the product disappoints and repeat sales do not occur. Marketing can get a customer to buy once, but then the product must deliver. This one hasn’t. It was all Madison Avenue with no substance.

Now Obama’s “brand” is tired. It has been overpromised and overexposed. He is a case study in false advertising that no longer wears well. He does not unify, bring hope or govern. In that sense, the promises upon which people bought were fraudulent. Instead of improving the condition of the country, the product has been downright harmful.

The more people see of this man the more obvious there is no “there” there. Narcissism, arrogance and ego prevent the President from understanding what is happening. His relentless appearances on television, blaming everyone else for problems is old. His repeated use of “I” to take credit for the few things that have gone well, is not helpful. His obvious unwillingness to lead and his inability to manage are apparent to all but the Kool-Aid drinkers.

For most of us, he has morphed into a Public Nuisance,  a common recurring annoyance that people want to avoid. His repeated appearances are empty. He has no solutions. Almost three years into this economic tragedy he promises to present a jobs program next week. Has he just discovered there is a recession/depression? Why has this taken three years to address? Does anyone think he will offer anything constructive?

President Obama is viewed by increasing numbers of the public as a mountebank, a Hollywood facade of a man, a common street hustler dressed up in nice clothes but with no record of achievement in anything. He will be seen by historians as an aberration, a mistake. Handlers likely recognize what is happening and recommend he spend less time in public and then only when he has something to contribute.

Apparently Obama’s ego prevents mitigating his fall. Tragically when a man trades solely on image, he must preserve it. Obama has squandered probably the only asset he had. Apparently Obama believes his own press clippings, even though they are written by sycophants in the mainstream media. As a result, he is in the process of destroying himself by exposing the empty suit that he is.

Karl Denninger discusses Obama’s recent performance in the debt ceiling debate:

 That was an absolute disaster for Obama.

Let us not forget that this President came into office and ran the credit card to the extent of more than $1,500 billion a year for the last two years.  He continued the bankrupt policies of George Bush who did the same damn thing.  He has blown money like crazy, yet has utterly refused to face the fact that there is no way he can continue to do what we’ve been doing with these deficits for the indefinite future.

We were told these deficits were necessary due to a crisis in 2008.  But we have also been told the crisis is over.  That our economy is recovering.  That Wall Street is “healthy.”  That the banks are “ok” and “well-capitalized.”

These are lies and The President knows it!  The economy is a damn wreck.  The banks are only “solvent” because they’re lying about asset values.  And Wall Street is punch-drunk – again – on cheap leverage, headed for yet another utter and complete disaster.

So now, having run smack into the Tea Party and Boehner saying “no more damnit; we’re going to blow up if this crap continues!” The President now turns around and throws a temper tantrum on national television threatening the old “tanks in the streets” (effectively) if he does not get what he wants – which is yet another blank check.

Well Mr. President I want to know when the blank check demands stop!

Why?  Because there’s no damn money, that’s why.  The US Government is unable to keep doing this crap forever.

It has to stop! 

In fact S&P has clearly stated that if you pull the crap you intend the downgrade you claim you’re trying to avoid will come.

I know in advance it is going to suck when the deficit spending stops. I’ve been writing on it for more than four years and have been utterly consistent.  There is no escape from the mathematical facts.

So, Mr. President, if you intend to demand this crap continue, you have the affirmative obligation to tell the American people exactly when and how this is going to stop because you are not a King, you’re a President and you are subservient to the people – not the other way around.

If you can’t or won’t then Congress has the absolute responsibility to say NO - period – and force a balanced budget right now, since you will have, by doing so, declared that you never intend to resolve the underlying problem.

It’s that simple.

The Democrat Party is coming hard upon decision time. Do they support what appears to be a sure loser or do they abandon him? Their decision could affect the survival of the party itself. For individuals in close races, it seems suicidal for them not to break with this albatross. Their careers in politics may depend upon which way they decide to go.

 

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