All I can say is that the most sane states seem also to have the most libertarians.
Notice how there seems to be a collection of negative global data points kind of clustering? I have.
Things are not going well in the old US of A, despite what the official mouthpieces are saying. There is a sense that the grownups are gone. That the thing which makes America, America, is under serious threat. There is a sense that taxpayers are not valued. Indeed that some people resent taxpayers even though the taxpayers are funding the welfare state. There is a sense that the crony class is shutting people out. (Which it is.) That the “you didn’t build that” mentality has truly taken hold in large swathes of America, even while the cronies pillage away.
In the attached video the narrator says that the results of of the survey are “surprising.” I don’t know that they are.
Of course the next question is, “Where are you going to go?”
“You can run on for a long time…Sooner or later God’ll cut you down…” – Johnny Cash
Greece got “subprimed” into the EU. It didn’t have the credit rating to be part of the euro experiment but Goldman Sachs found a way to make Greek numbers palatable to Brussels (Brussels wanted Greece anyway) in 2000. Now reality has come and Europe’s southern economic headland is disintegrating.
As the author of the attached article correctly notes the most recent Greek crisis represents a transition in the economic narrative. (It’s not just Greece though. What’s happening in China and in South America is also a big part of it.) Of course the Austrian economists have known that this day would come sooner or later. Yes, one can print. Yes, one can paper over an economy for a while. But sooner or later the cracks in the paper mache appear.
Greece is a big crack.
How does the Fed get dollars to European banks when said banks run out of dollars in which to do dollar denominated business? Print some new ones, then have the euro banks swap euros for the new dollars. A little of this. A little of that. And presto, mini euro-bailout. (Or maybe not so mini depending on the circumstances.)
The reason we had the Crash in 2008 was because the Fed kept rates too low for too long. In response to the tech implosion and then the 9-11 attacks Allan Greenspan and the FOMC panicked and ended up inflating a worldwide housing boom which morphed into the disaster (to put it mildly) which is the Great Recession. There’s more to it than that but that’s basically what happened.
Consider now that Ben Bernanke (and Janet Yellen) have kept interest rates much lower for even longer than Greenspan did.
The principal author of our current economic ills doesn’t seem to know history any better than monetary policy.
When the Obama administration announced that it was planning to replace Alexander Hamilton on the ten dollar bill with an unspecified woman, former Fed Chairman Ben Bernanke leapt into the fray. He said he was “appalled” by the decision since Hamilton “was without doubt the best and most foresighted economic policy maker in US history.” He proposed that Andrew Jackson be removed from the twenty dollar bill instead.
A New York Sun editorial on June 23 dryly noted that Hamilton was the author of the Coinage Act of 1792, which represents the very sound money that Bernanke has done everything in his power to destroy. The Sun, however, tempered its criticism with the following comment: “We understand that there are serious persons who reckon Hamilton, who was notoriously partial to federal power, would not have opposed the idea of fiat paper money. This point has been marked for us by no less a scholar than the journalist and historian Myron Magnet…. Let us stipulate Mr. Magnet’s point.”
Let us not stipulate Magnet’s point, because it is incorrect. Hamilton condemned paper money not backed by gold or silver as an evil. Here is what Hamilton actually said: “The emitting of paper money by the authority of Government is wisely prohibited….Though paper emissions, under a general authority, might have some advantage…, yet they are of a nature so liable to abuse—and it may even be affirmed, so certain of being abused—that the wisdom of the Government will be shown in never trusting itself with the use of so seducing and dangerous an expedient…. The stamping of paper is an operation so much easier than the laying of taxes, that a government, in the practice of paper emissions, would rarely fail…to indulge itself too far in the employment of that resource…even to [ the point of creating]…an absolute bubble.” [ Report to the House of Representatives, Dec 13, 1790]
Yeah, the reckoning has been coming for a very long while. The Fed is out of control and lost. The stock market as it is is not sustainable. Many other markets are in the same boat.
Any market which reflects the wants and desires of the rich (aka those closest to newly “printed” money) is pretty much in a bubble. Art, wine, etc. Even residential real estate in places like London and New York are bubblicious.
It isn’t going to keep going. When this bubble bursts there will be serious dislocation economically and politically.
Below Marc Faber opines on Carl Icahn’s comments.
As governor of Wisconsin Scott Walker has seen more than his share of challenges for the period he’s held the office. Through elections, recalls, an army of state workers invading the state capital and demanding his head, he’s stayed pretty cool. He also won. It appears that he knows how to make decisions and how to see things through. But he has no national economic experience.
What does he believe? What would he do? We have a few clues.
One of them is which economic thinkers Walker has been talking with.
Rumor has it John B. Taylor, prominent economist at Stamford and the Hoover Institution and the governor have been sharing ideas.
What then do we know about Taylor?
Oh Mr. Stockman, you don’t mince words. And that’s why we like you so.
Indeed the central planners are at the helm pushing the world economic ship into deeper and blacker waters. Looking for something, anything, a way out of this 0% interest rate bizarro world.
Ron Paul calls out the Plunge Protection Team on CNBC. I don’t think I’ve ever heard it mentioned on financial television. Seriously anyway.
And boy is he right. There is an assumption that the Fed will never let stocks (and other assets) revert to real levels.
The thing is the Fed for all its power is still subject to the laws of thermodynamics, just like the rest of us. That is, even the mighty central bank will feel the sting of its hubris.
Of course so will the rest of the planet. Which let me tell you is a real bummer.
Congressman Hensarling deserves some praise. He has spearheaded the effort to kill the Export-Import Bank (let’s hope that thing gets put in the grave) in the face of massive lobbyist firepower and now he’s putting the Fed squarely in his sights.
Hensarling’s area of interest with regard to the Fed is the 2012 leak of Fed Minutes to prominent insiders 19 hours before the the public got to see the information. This is important, market moving information which if gotten early could have been very “helpful” to traders. (We’d love to know if any of the banks involved moved on the early information.) This is what Bloomberg had to say about the incident in 2013.
The Fed initially said recipients were primarily congressional staffers and trade organizations. A list of 154 recipients released later by the Fed show that banks also were among them. The list included Barclays Plc, BB&T Corp., BNP Paribas SA, Capital One Financial Corp., Citigroup Inc. (C), Fifth Third Bancorp, Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co., Nomura Holdings Inc., PNC Financial Services Group Inc., Regions Financial Corp., U.S. Bancorp, UBS AG and Wells Fargo & Co.
Other financial firms included IntercontinentalExchange Inc., the Atlanta-based owner of the world’s largest credit- default swap clearinghouse that has agreed to buy NYSE Euronext for $8.2 billion; buyout firm Carlyle Group LP (CG), and financial- market data provider Standard & Poor’s.
You can read the entire article HERE.
This supposedly was an accident. Boy, what an accident. I sure think the American people deserve to know the details of this accident. So does Congressman Hensarling. But the Federal Reserve is fighting to keep things secret. Why?
In 1937 after years of a meager “recovery” the economy slumped again as artificial economic props were taken away. The Great Depression was born anew. 4 years later we were in a global war.
Let’s see, depression, then mediocre growth underpinned by artificial economic stimulants, sounds pretty familiar.
This is what happens when interest rates are set by a politburo instead of by the market.
It should be noted that Texas was negotiated into the Union.