Blowback: The Washington War Party’s Folly Comes Home to Roost

“Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win”
Sun Tzu, The Art of War

Some of the folks in the Military Industrial Complex would be wise to revisit the lessons in this book. Of course much of the Art of War is about being frugal with resources. The contractors aren’t too keen on that.

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Speaker Boehner Readies Final Sellout As Debt Ceiling Debacle Looms

By Stefan Gleason

It’s campaign season, and that means non-stop media coverage of candidate polls, quips, gaffes, tweets, emails, controversies, lies, and scandals. It all makes for a good soap opera. Unfortunately, it’s almost all irrelevant in the big picture.

The media prefer to focus on the sideshow rather than the 800-pound gorilla in the room: the looming debt crisis. Nothing that comes out of a pundit’s mouth or a Hillary Clinton email will close the $210 trillion long-term fiscal gap the U.S.

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Schiff: I’m right about the Fed, I’ll be right about stocks, “Economy rapidly decelerating”

3 bold statements just in the headline, but even CNBC granted that Schiff deserved to take what it called a “victory lap.”

Schiff argues that the Fed does not plan to raise rates at all because it can’t raise rates. 7 years ago with the start of ZIRP and QE Schiff says the Federal Reserve entered a “monetary roach motel.” That the Fed is now stuck. Which is of some concern to say the least.

It should be noted also that there seems to be a lot of talk about less than 0% interest rates as of late (LZIRP).

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“For every additional $100 in government loans to students, colleges raised tuition $65”

If one wants to fix the college cost problem one would do more good by eliminating federal aid than by expanding it. Easy credit to students is inflating tuition costs and thereby forcing (well not forcing) students to take on ever more debt. But the administrators and tenured professors sure like it.

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Doomsday clock for global market crash strikes one minute to midnight as central banks lose control

Not the kind of economic boom the Keynesians were hoping for.

Look at it this way. If you are part of the vast, generally assetless or nearly assetless middle class you won’t have to watch the value of what you have decline. I guess that’s a good thing, sort of.

The world is slowing. China is in serious trouble and the ripples emanating from Beijing are becoming waves. The Keynesian experiment post-Crash is failing. (As the Austrian economists said it would.)

World markets are built right now on cotton candy and the rainbow dreams of central bankers.

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How Student Loans Create Demand for Useless Degrees

If one is going to go to college the best way to do it is with someone else’s money. If that can’t be done at least spend your money, and it will be a pile of money, on a degree which will serve you well. There isn’t a huge demand for sociologists. Art history, as much as I love it, is not a strong major either.

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Greece’s Problems Explained in Six Charts (and one movie clip)

See, now that we know what the problems are, getting the whole Greek economic crisis thing under control should be pretty easy.


Mohamed El-Erian says the Greek “no” vote is like this scene from the classic movie Network.

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“It’s like ‘The Sopranos,’ except it’s the government.” : The U.S. government’s predatory-lending program

Uncle Sam looks different these days.

Debt can be a very valuable tool when used wisely and with caution. One has to remember however what can happen if one over leverages oneself. You and I are not Goldman Sachs. We can’t ask the government for a bailout.

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Could we be at war with China before the next presidential election? Some informed individuals say maybe

What’s the old adage? Never engage in a land war in Asia? Well we tossed that one out a while ago and now it looks like we might be heading for one on the high seas. No kidding. China is building island bases in the South China Sea, right over massive deposits of oil and smack dab in the middle of Asian trade routes, and we are not happy about it. In fact we’ve ordered China to essentially stop immediately.  

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