And from that rarity, A leading Republican Harvard economist.
People around the world are coming to understand what crony capitalism is. This comes to us from Australia. The author still has a bit too much faith in government but generally he gets it.
This headline comes from CNBC and is misleading. These companies don’t “make the most money from the FEDERAL GOVERNMENT,” Taxpayers are making these companies rich, not the government. It’s not the government’s money. It’s yours. Too many people forget this.
Why are we going into massive debt, in part, to pad the bottom lines of these companies?
That was 2013. Times have changed.
Elon is the most likable of the big time crony capitalists but he is a big time crony capitalist none-the-less.
The European Union is eroding from its periphery and it is collapsing in pieces even in Germany and France. It is highly fragile and if real recessionary winds blow the EU will start to crumble at a faster pace.
We say the faster, the better.
The bureaucrats are clinging to the dream, but the dream has morphed into something very different for many in Europe. We can’t say that we’re disappointed.
This is Versailles.
I am extremely fortunate to be able to do what I do for a living. Most of the time I get to write about the news and work on other business projects from my base in the Shire of the Blue Ridge. Broadband is a beautiful thing. But every once in a while I leave the shire and go into Washington DC for meetings.
I enjoy going believe it or not. There are many interesting and smart people who live and work there.
One of the reasons I so enjoy Ron Paul (and there are many reasons) is because he raised the Federal Reserve as an issue in the eyes of the public. The Fed would have been very pleased to stay just as it was, a collection of supposed economic wizards gathered around the monetary cauldron in the Eccles Building. Obscured from view. In the shadows, where the “secrets of the temple” were shared with a select few and in hushed and important tones.
Again I hate the word “elites,” but for your review.
So, default, growth, or inflation. How’s this going to be resolved?
Well they didn’t say that exactly but everyone understands that a rate rise from the Fed might send stocks tumbling along with Democratic chances of taking the White House.
It’s interesting that the Fed folks met with these protesters as they seem quite uninterested in meeting with people who actually protest the insanity of the central planning organization (and who know what it does). The Fed critics far outnumber activists simply concerned with higher interest rates.
Of course even when Nixon completely detached the dollar from gold we had a very very modified gold standard. But at least there was some tie to reality.
Now we live in an almost completely fiat system, though it can be argued – well – that oil is the de facto backer of US currency these days, the so called petrodollar. (Though some do not buy this argument.) Regardless we live in a highly financialized world with lots and lots of cheap money floating around.
The headline is actually false. People still do listen to central banks. There still is the feeling that the economic drug dealer still has some cocaine to pump into the system. If investors weren’t listening at all we’d be seeing a much more interesting market.
But investors are listening less. Or perhaps more accurately, investors are listening but are much more dubious. The central bankers have long lost their wizard status, at best they are magicians, and even so people are catching the sleight of hand more and more often.
No crony capitalism in half a trillion of “infrastructure” projects. None at all. No cost either.
Wonder why a large part of the population is spitting mad? This is a big part of it.
Yet another indictment of Keynesian Kult nonsense. Had we let the markets clear post 2008, the stock market, the housing market, other markets, we would have had robust and real growth in relatively short order. People would have been able to build on honest to goodness, market for-realsies growth. But markets must clear for the economy to heal itself.
The answer to the question is – no. However Japan is going to go the long route before it gets to this answer.