OK, so you lose Ex-Im and the sweetheart deal which goes with it. So you decide to take your ball and go play – wherever – outside of the United States. Fine.
Ralph Nader is one our favorites here at ACC. We disagree with him on a myriad of issues. He likes government quite a lot. We, well are more skeptical of the state. Saying that though, there is no doubt that Mr. Nader is an enemy of crony capitalism and one of the good guys running around Washington. (There are a few.)
Below is a declaration. A call to town halls. A call to take the rhetorical fight directly to our elected officials during their summer recess. If our representatives are going to ignore us in DC they will have a much harder time ignoring us at community meetings and grandstanding events. Turn on your iPhones. Record responses to hard questions. See what happens.
They do work for us.
So it can’t dogfight. (Maybe not an issue but probably will be if history shows us anything.) It is also a single engine aircraft which means if one engine goes out, that’s it. Over land the situation may be salvageable. Over the ocean, where an extra engine is particularly valuable, it’s a much tougher spot. The Navy as I understand it wanted a dual engine jet for that reason. Others did not.The F-35 is also a manned aircraft in an era where this is less and less necessary.
And this is just for starters.
Obamacare is a giant jack. And no, single payer is not the solution. That is the last thing we need. Single payer is an excuse for all sorts of other cronyism. Not to mention that socializing healthcare in the 21st Century is just a backward idea. We should be opening up healthcare not centralizing it.
There is some debate around here as to the world’s most crony company. There are many candidates but consistently in the top 5 or so is Goldman Sachs, Government Sachs.
Few companies have exploited the taxpayer and political connections to the extent Goldman has. Truly it is a company built fundamentally on cronyism.
In 2008 Goldman Sachs was leveraged more than 100 to 1 on its assets. (That is probably a conservative estimate.) When the economic tide turned it was fully exposed. It should have died the disgraced death it deserved. It should have been crushed under the wheel of the market.
Goldman however had a former CEO at Treasury, Hank Paulson, who bailed out his buddies with money taken from taxpayers.
The a new front opens up for the Federal Reserve.
Also one definitely gets the sense that the recent decline in gold is looking more and more like an opportunity to put away some real wealth at relatively low cost. This is definitely on the mind of the Chinese, and perhaps the guys in 10 gallon hats.
Some? A lot.
We’ve been talking about this for 3 years. For many very powerful interests either one, either family, either member of the Establishment Party is fine.
By Ron Paul
The drama over Greece’s financial crisis continues to dominate the headlines. As this column is being written, a deal may have been reached providing Greece with yet another bailout if the Greek government adopts new “austerity” measures. The deal will allow all sides to brag about how they came together to save the Greek economy and the European Monetary Union. However, this deal is merely a Band-Aid, not a permanent fix to Greece’s problems. So another crisis is inevitable.
The Greek crisis provides a look into what awaits us unless we stop overspending on warfare and welfare and restore a sound monetary system. While most commentators have focused on Greece’s welfare state, much of Greece’s deficit was caused by excessive military spending. Even as its economy collapses and the government makes (minor) cuts in welfare spending, Greece’s military budget remains among the largest in the European Union.
Despite all the handwringing over how the phony sequestration cuts have weakened America’s defenses, the United States military budget remains larger than the combined budgets of the world’s next 15 highest spending militaries. Little, if any, of the military budget is spent defending the American people from foreign threats. Instead, the American government wastes billions of dollars on an imperial foreign policy that makes Americans less safe. America will never get its fiscal house in order until we change our foreign policy and stop wasting trillions on unnecessary and unconstitutional wars.
Government is inherently crony. That is its nature. It has an inherent tendency toward corruption. Crony entropy. Like water flowing downhill.
In Greece we see a relatively poor crony state languishing on the rocks while the Germans pick at its liver. And we pity the place. Yes, they’ve gotten themselves into this mess, but Brussels (and Berlin) are being stupid about things.
Not because they won’t give Greece another bailout. They are dying to give Greece more money truth be told. (The banks want to be paid on their Greek subprime portfolio.) But because they won’t just cut the Greeks loose with any dignity.
But hey, Greece does have nice beaches, got to keep access to those.
If you really want to understand why the crony capitalist system is so insidious as well as ubiquitous I highly recommend listening to this bit from the master Murray Rothbard. If you really want to get what is so messed up about government and the “privavte sector” partnering up, one must know at least a little bit of his work.
Warning though. Rothbard can rattle one’s whole understanding of politics and economics.
The Chinese stock market is crashing hard. Over half of all the companies on the Shanghai Exchange have been suspended from trading. The government is directly intervening in the market and has failed to even slow the selloff.
I post this because I feel like retail investors (most of our readers who invest) should be more informed about the markets into which they put their money. It’s not a game. There are inefficiencies in information relay. Sometimes such inefficiencies are created by governments (such as when the Fed leaked minutes to big banks before the minutes were released to the broader public) and this is totally wrong. Other times such inefficiencies (and opportunities for profit) present themselves because of the shifting nature of the market. Either way it is good to have at least a sense of what one is up against.
And a special note to mutual fund investors – Check your expense ratios and keep them low.