Stockman: Inequality Led to the Rise of Donald Trump

David Stockman is one on a list of people I watch particularly closely. He gets what’s going on, he’s been on the inside of budgetary Washington and the inside of New York finance, and has emerged from it all as a kind of gadfly dissident. He says what he’s thinking and very often it is dead on.

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Professors Aren’t Feeling the Economy’s Pain

I think there is much truth to what Mr. Kocherlakota has to say. The life of a professor, particularly the kind of professors we are talking about here, is pretty comfortable and insulated. That is one of the reasons they continue to cling to their Keynesian (for the most part) religion. Life is good, the economy is “working” – for them. (Now the adjunct profs are a whole different equation.)

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CEO of Gallup polling explains the quiet economic desperation of many Americans

Some people are mystified by the rise of Trump. Why does this man appeal to so many and indeed appears now to be appealing to many who had previously dismissed him? What is this economic insecurity we hear about? Isn’t the unemployment rate under 5%? That’s good right? Why aren’t people happier?

Because for many people life under Obama has gotten tougher, much tougher. The misguided policies from the Fed in tandem with a massive increase in red tape handed down from the current administration has retarded growth and real progress.

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Obama Blames Conservative Media’s ‘Misinformation’ for Close Presidential Election

What world is Obama living in that he can say this with a straight face? Aside from a few websites, the Wall Street Journal, the odd talk radio show and Fox there is NO conservative media. (And even this media is relatively new.) Everything else is decidedly not “conservative” and has been that way for generations. “Liberals” (really statists) control most of the media including NBC, CBS, ABC, PBS, MSNBC, Bloomberg (mostly), CNBC (for the most part), CNN,

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‘The longer central banks interfere, the worse the crash’

“I smell…Central bankers.”

How this obvious truth eludes so many economists is beyond me.

It’s simple. The central banks seek to goose the economy. They lower interest rates below the real market interest rate. As such people, institutions, everyone takes advantage of the relatively cheap credit. But as this cheap credit is taken advantage of malinvestment (that is investment that would not have happened if the market had set rates) begins to build up. It builds and builds and builds until there is so much malinvestment the economy topples on itself.

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A libertarian, free marketeer was just elected mayor of Johannesburg South Africa

Johannesburg is a massive city. One of the great cities of the world.

Unfortunately, though rich in many respects the city also has areas of terrible poverty. The legacy of apartheid and of corrupt ANC (socialist) governments post-apartheid are terribly evident. Crime is rampant as is unemployment.

However there is some new hope for Joburg.

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Venezuelan president Nicolas Maduro jokes about hunger in his country, it’s ‘the Maduro diet.” Venezuela doesn’t laugh (VIDEO)

He’s still thick around the middle.

I heave heard that Maduro has a political tin ear, a real problem for a socialist/populist head of state. This is a pretty good example of such a malady.

He should have just told the people to “eat cake.”

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Central Banks May Choose Helicopter Money Over Negative Rates

Here comes the Fed…Hooray.

The definition of “helicopter money” appears to be shifting a bit. Generally it means pouring currency (printed by a central bank) into the economic system by directly depositing it into accounts. What type of accounts appears to be an open question. Whatever the Fed chooses (assuming that it does) it is a bad idea however.

How about we let rates adjust to where they should be naturally? How about we let things clear. How about we get real now,

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Latin America’s (Socialist) Pink Tide Crashes on the Rocks

High tide in 2008.
Times change, and socialism always eventually fails. It just did particularly quickly in South America.

And thank God for that.

Unfortunately however in the crashing and chaos people are hurt. As the state apparatus grinds to a halt in Venezuela and spits and coughs in other parts of South America life has gotten harder for many as the statists cling to power. Government is a helleva drug and it is very very hard to quit.

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When They Say “Hoarding” Instead Of “Saving” You Know You’re In Trouble (The big govt economists want to take your cash)

“Hoarding” is code for savings certain people don’t like. These same people then argue that your “hoarded” property is illegitimate and so subject to confiscation in the name of the “greater good.”

This is of course silly and hearkens back to old dusty ideas about the “velocity of money” etc. Wealth comes from ideas not money supply. If the economy provides enough opportunity for return on investment people will exit any “hoards.” (At least to a very large degree.) But in a world in which ROI is increasingly difficult due to poor economic and societal management people are going to be inclined to save.

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“No Reason” Why ECB Shouldn’t Buy Stocks: Peterson Institute

No reason eh? It’s perfectly OK for a central bank to buy the market. Price discovery? Reality? Such things are so passe. So pre-2008.

Remember when people used to talk about this sort of thing in hushed tones? It wasn’t that long ago. Now? Right out in the open. Heck in some places it’s already DONE right out in the open.

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