Economy, spending, and debt
If anyone believes the political establishment has a solution to the debt problem, please visit one of Virginia's close-minded "conservative" republican establishment political blog sites, bearingdrift, and see for yourselves. From an article posted there titled "Virginia Candidates React to Debt Ceiling Issue": That the U.S. has a debt ceiling at all is unusual. Most [...]
And it's not some Tea Party tinfoil hat whacko who thinks so; it's Mohamad El-Erian, co-CEO of PIMCO, the world's largest bond fund, with over $1.3 Trillion under management. "The co-CEO of the world’s largest bond fund has warned America that it faces a combination of higher inflation, austerity and financial repression over the coming [...]
But we're not there, at least not yet. From WaPo: Follow the link and click on the graphic to see the trajectory for the federal debt. We will not have run out of other people's money until the other nations of the world stop lending to us. That day is coming, IMO, and you should [...]
The economy is in a slump, so the government must step in and help stimulate it so we can have prosperity again. That sounds like a reasonable statement, so what’s wrong with it? A lot of things. The first is that it’s a magician’s trick. The way it works is that the government quietly takes [...]
Any economist or economic historian will tell you: volatility will kill you. Any physical scientist will tell you that a system that experiences oscillations that rapidly increase in size will soon tear itself to pieces. Please watch the illustration below; it is the famous "Tacoma Narrows Bridge." "Galloping Girtie" was a bridge made of concrete [...]
...was on C-Span call-in program this morning. It's all about math; politics provides nothing more than a distraction, and the Congressman gets plenty of callers who illustrate the point. The math of federal fiscal policy doesn't work anymore. Pay attention especially starting at about 7 minutes where the Congressman expresses his frustration with political posturing [...]
This article appeared as an Op-Ed in Forbes: Follow the link above and read the whole thing. Teasers: "I’ll make two predictions with utter confidence. The first is that one day Federal Reserve Chairman Ben Bernanke will be ridden out of town on a rail, joining Arthur Burns in that special circle of hell reserved [...]
Bernanke speaks on Wednesday, justifying dollar debasement; The FOMC (Open Market Committee) released their statement at 12:30 pm. The dollar promptly tanks, and wholesale prices rise commensurately. U.S. Dollar Index: Meanwhile, former (Bush II) Treasury Secretary Paul O'Neill makes this statement Wednesday during an interview on Bloomberg: "I think the people who are threatening not [...]
The diagnosis of cancer is a shock to any patient and their family because it is such a devastating and life-threatening disease. Even so, there is a cure for it if caught early enough. But the cure can sometimes be worse than the disease. Radiation treatment works well at destroying the cancer, but in doing [...]
...because a society doesn't need to produce, it only needs to consume! Full article at link. After a weekend full of empty (or not) Chinese posturing, Marketwatch's Brent Arends has an interesting tidbit to add to the China vs US debate. "The International Monetary Fund has just dropped a bombshell, and nobody noticed. For the [...]
...it's just my job, five days a week. And I think it's gonna be a long, long time 'til touchdown brings me 'round again to find I'm not the man they think I am at all Oh, no no no I'm a Rocketman Rocketman! Burnin' out his fuse up here alone. http://www.youtube.com/watch?v=-LX7WrHCaUA&feature=player_embedded
Do you want to know why food and fuel costs are soaring? The Dollar is breaking down. Do you want to know why the Dollar is breaking down? The madmen at the Fed are printing them to fund federal spending. Do you want to know why the federal government is spending them so fast? Here's [...]
