By Monty Pelerin, on February 20th, 2010 There are few economic problems that don’t originate in politics.
Originally, economics was known as political economy because the early practitioners understood the importance of institutions on economics. One of the early journals of economics was started in 1892 at the University of Chicago entitled The Journal of Political Economy. It is still one of the most prestigious journals in the field of economics.
Citizen faith in government has deteriorated recently as shown in virtually every political poll. Rasmussen found: “…63% of likely voters believe, generally speaking, that it would be better for the country if most incumbents in Congress were defeated this November.” Gallup had the federal government ranking ahead of only socialism in terms of positive image:
People know something is wrong. They know economic conditions have taken a turn for the worse. They sense that they don’t matter much, at least in the eyes of their government. Furthermore, many believe that government is out of touch and corrupt. Politicians are viewed more as a ruling class than representatives of the people.
History is replete with examples of the rise and fall of empires. Is there some mysterious, material force that produces “cycles of civilization?” History seem to support such a contention, but coincidence and correlation is not causation. Societies rise and fall as the result of policies, laws, customs and traditions. Man creates the forces that drive civilizations.
Over the centuries, brighter folks than our elected officials experimented with virtually
Continue reading The Economic Crisis is Only a Symptom
By Monty Pelerin, on January 5th, 2010 “My long view for the US is high inflation which will not show up in the government’s fraudulent statistics, along with a declining standard of living, increasing decay and ultimately leading to chaos, societal and government collapse in the US within a decade or two, maybe sooner.” Craig Harris
The following article will seem extreme to some. The above quote especially will shock many. My view is that this quote is a reasonable estimate of where we are heading. No one can predict the future with precise accuracy. Even if a prediction is correct, estimating the timing is even tougher.
Many, including myself, will argue that the future is not deterministic. Actions and policies can change and alter outcomes. Clearly, that is true. Yet, it is likely that the tipping point for changing policies necessary to avoid Harris’ prediction was past years ago. In that sense, his forecast may be deterministic, i.e., independent of any actions that are subsequently taken.
Future actions can certainly influence the timing, but I believe Harris has covered that possibility with his “within a decade or two, maybe sooner.” My personal guess would be within a decade.
BANKRUPT FASCIST OLIGARCHY WITH A MILITARY MACHINE
Dec 27, 2009
Craig Harris
For a contact email address go to Craig’s website:
http://earthblognews.blogspot.com/
“I would buy every three months some gold and not worry so much about the price because the weight stays
Continue reading Free Markets Don’t End Like This
By Monty Pelerin, on January 4th, 2010
Image by Francisco Diez via Flickr
James Quinn has posted another very informative piece.
It is especially useful for those who don’t comprehend the degrees of financial chicanery and deceit to which our politicians have resorted . The article will also enable you to understand the mathematical impossibility of the Federal Government honoring its social promises and debt obligations. There will be major defaults!
Understanding the criminal irresponsibility of our politicians might also provide you with your own Howard Beale moment:
The article is highly recommended. While I would propose a somewhat different solution to altering the situation (not tar, feathers and rope, although they are deserved), Quinn’s proposal would be a vast improvement over what we currently have. READ THE ENTIRE ARTICLE
U.S. Government’s Road to Perdition
by: James Quinn January 04, 2010
James Quinn
Christmas is a time when kids tell Santa what they want and adults pay for it. Deficits are when adults tell the government what they want – and their kids pay for it.
Richard Lamm
Decade after decade, Americans have voted for intellectually and morally bankrupt dullards that promise them more goodies under the tree. Every day is Christmas in Washington DC. Long-term means the next election cycle to these traitors of the Republic. I have written ad nauseum about the impending financial cataclysm that
Continue reading U.S. Government’s Road to Perdition
By Monty Pelerin, on January 3rd, 2010 Corruption, Ineptness and Duplicity — The Description of Washington, DC
For anyone still under the delusion that the government is actually a neutral referee or that we will get out of this crisis in any reasonable time or manner, the following is an absolute must-read.
The financial sector has been the scapegoat for much of our economic problems. They are hardly innocent and probably are a key part of the oligarchy that run the country. It would be nice if we saw criminal investigations into their activities which would result in many going to jail. That will not happen because it would implicate too many politicians and/or cut off their cash supply.
Now we have indications that the role of the financial sector may have been smaller than first assumed. Not that they are innocent by any means, but that the crisis could not have attained anywhere near the size it did without direct complicity by government agencies, specifically the GSEs. An investigation here is not likely either because it would be even more dangerous to the politicians involved.
Based on the allegations of Edward Pinto as reported in the Wall Street Journal, Zerohedge concludes: “… it seems almost beyond question that the policies (or policy malfeasance) of Fannie and Freddie, and not the actions of large banks or firms like AIG are the proximate cause of not just the credit crisis, but also the continuing multi-act, multi-bailout farce that continues to be passed off to the public as necessary
Continue reading Fannie and Freddie, Not Financial Sector to Blame
By Monty Pelerin, on January 3rd, 2010 The recovery of the stock market in 2009 was impressive. The Dow Jones hit bottom in March at 6,547 and recovered to close the year at 10,428, an intra-year gain of about 59%. This occurred despite deteriorating economic conditions. Yes, third quarter GDP was positive (although revised downward to 2.2%). The fourth quarter is likely to come in positive as well.
While government and their rented economists tell us that we are in recovery, virtually all growth is from direct government spending or government-induced spending from programs such as Cash for Clunkers.
There are limits to how much the government can continue to spend. More importantly, there can be no recovery without private sector growth, and that has not occurred.
The private sector continues to shrink, as measured by growing unemployment and declining state income and sales tax collections. The Wall Street Journal reported:
State and local tax revenues tend to lag behind the downturns as well as the upturns in the economy because of the time it takes for collections to catch up with depressed store sales and diminished incomes. The third quarter was the fourth consecutive quarter in which tax collections were below year-ago levels. Through the first three quarters of 2009 state and local tax revenues totaled $875 billion, nearly 8% below the $951 billion collected in the first three quarters of 2008. In the same period, federal receipts were down nearly 19%. WSJ,
Continue reading Market Manipulation?
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Friedrich von Hayek
Friedrich von Hayek founded the Mont Pelerin Society.
“Monty Pelerin” is a pseudonym chosen by this blogger to convey general agreement with the philosophy, goals and spirit of the Mont Pelerin Society. No other connection exists between the blogger and the Society.
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