Do not ask, ‘Who is destroying the world?' You are. Say whatever you want about Ayn Rand, some of the ideas in her epic tome "Atlas Shrugged" should be required reading in American schools. In our previous post, we introduced the idea of money and the manipulation (destruction) of its value. Without further comment, [...]
One of the enduring legacies (hangovers, really) from the Great Depression is the notion that the government can and should actively manage the economy. Schoolchildren still are taught, and most of us still believe, that Comrade Roosevelt's massive government programs were instrumental in ending the Great Depression. The fact is that nothing could be further [...]
Very few people appreciate the extent to which the dollar is embedded in world trade, and what it means for the U.S. Dollar to be the world's “reserve currency”. In fact, two-thirds of world trade is conducted in U.S. Dollars. The strength of the dollar is based on the strength of the U.S. economy. Historically, [...]
The previous post was garbled somehow in the process of posting; apologies. ---- The White House web site now contains a link to the just-released OMB Mid Session Review (.pdf warning). It is filled with lots of facts, figures, and general good fun! Let’s jump right in! Guess what? It’s all Bush’s fault! In January [...]
There was a good article in the Wall Street Journal yesterday by Lee Ohanian titled, "The Right Way to Raise Wages." Here is a section of the article that discusses what unions do to wages: Those want more unionization claim it is necessary to raise wages. Instead it will further depress the economy. My research [...]
This is an hour-long video that I highly recommend. It covers a number of economic topics, all of which intertwine. Any one of them can be a study in itself. The video portrays its message without pulling any punches. The fiscal path we are on is unsustainable, and has been for many years. Hopefully viewers [...]
Us bumpkins out here in the unwashed masses (read: those of us who don't hold PhD's in economics and work for a central bank) might think that "Neither a borrower nor a lender be" are words to live by. But boy, lemme tell ya, them folks with them there high-falutin' edumacations have got it all [...]
Orwell would be proud. Orszag exit reveals deficit policy split (Financial Times free subscription required) Peter Orszag, Barack Obama’s budget director, resigned this week partly in frustration over his lack of success in persuading the Obama administration to tackle the fiscal deficit more aggressively, according to sources inside and outside the White House. Mr Orszag, [...]
See video below. Investor Hugh Hendry understands George Soros: "The richest people on the planet become socialists"; "Socialism is when you build a moat around the castle." Mr. Hendry is responding to a recent Bloomberg interview in which Soros decried German determination to cut their deficit spending (Imagine their arrogance!). Citing the "needs" of other [...]
We received the following information from the City of Richmond about a unique opportunity this Saturday, June 26th to voice your opinion about the fiscal mess our nation finds itself in: As part of the national discussion around the federal budget and economy, national and local foundations and organizations are putting together non-partisan town hall meetings in 20 [...]
History doesn't repeat, but it sure as heck rhymes. That's why some of us are troubled by the parallels between our current fiscal situation and the response by various levels of government to the West's most memorable brush with severe financial turbulence since the 1930's. We have too much debt; by that, I mean personal [...]
I just received a very detailed report from Brian Reidl of the Heritage Foundation that details our out-of-control spending. I strongly encourage you to click the link to see the full report and see the visual graphs. It will make your head spin off your shoulders when you see it visually. It is an excellent [...]
