The Way Politics Work

Both parties in Washington belong to the same class — the criminal class. Both want to drain you of every cent and freedom you have left. Imagine the party that bills itself against spending and big government being described in this fashion: “This is a monster failure, an absolute massive failure on John Boehner’s part. This is a couple of [...]

Detroitification — It’s The Government, Stupid

Facts are stubborn things. No matter how hard the Washington crowd tries to sell an economic recovery, inconvenient and contrary facts keep rearing up to shatter their mythmaking. Few people any longer believe the claims of declining unemployment or low inflation at least based on purchases they make. The fable of a housing recovery is now crumbling:  New Home Sales [...]

Detroit Was “Impossible”

Detroit has fallen. The implications of this event are more important than most realize. Many previously-thought sacred cows were crushed in Detroit’s fall: In the most union of states and cities, unions learned that they are not sacrosanct. Investors learned that there are no risk-free loans. Uncuttable services like police and public parks were cut even before the fiscal demise.  [...]

It Is All Coming Down

As the stock markets of the world rise on a sea of liquidity, economies become increasingly dysfunctional. Credit and money creation is no remedy for economic distortions and mis-allocations. Liquidity can drive asset and commodity prices higher but it also leads to additional distortions. Credit and money creation is not an economic tool, it is a political tool. It is [...]

The Country Is Over

Data are hard to deal with when your vision is on the wrong side of it. Those wanting to claim there is a recovery underway are having just this problem. These people either have no understanding of economics or they believe falsely that they can inflate “animal spirits” with their hyped reports and that will initiate a recovery. There will [...]

David Stockman Alienates Both Ends of The Political Spectrum

David Stockman wrote an intriguing article which appeared in the NY Times. That it appeared in the Times is noteworthy itself, for it contradicts so many liberal shibboleths the paper has supported (promoted) for many years. Its appearance is less likely to reflect the first steps to Damascus and may be a sign of financial desperation where the need for [...]

The US As A Carnival Cruise

James Quinn has come up with a near-perfect analogy for what is happening to the US. He likens it to the recent debacle associated with Carnival Cruise lines. There is quite a similarity. Here is an outtake from his article “Adrift at Sea:” Carnival Cruise Line is trying to buy off the passengers with refunds and $500 bribes to keep [...]

Idiots Rule The Country

The insanity that is our Federal government and their lackies at the Federal Reserve apparently is unlimited. Janet Yellen, Vice-Chair of the SF Federal Reserve is the latest example of the idiocy. Apparently she is vying for the Paul Krugman Stool of Economics if any university is foolish enough to create one.  Here is Joe Wiesenthal's report on her recommendations:   [...]

Capital Flight

Capital has no nationality. It goes where it is treated best. As social welfare states grab for more and more money, they make it harder for capital and labor to be productive. At some point the coexistence of the welfare state with the productive sector becomes so strained that the productive sector either cuts back on effort and/or moves outside the [...]

The Charade Doesn’t Matter Anymore

The debt ceiling and/or debt debate coming up is irrelevant in the bigger scheme of things. It provides some midnight madness moments for Congress and good copy for the establishment we continue to misrepresent by calling them news reporters. But, other than that, it is merely another “crisis” to separate the productive from more of their wealth and income. If [...]

Going Down The Toilet

Preaching/warning about the impossibility of honoring our obligations is getting tiring for me. I can only imagine how readers must feel. Obviously they would like to hear some good news, although that is not possible given where we are. Rather than me rant and rave, Mort Zuckerman can do so in my place. For those who believe the fiscal cliff [...]