This column comes from Larry Kudlow and he basically endorses Trump. We at ACC do not endorse candidates and we never will. But the overall point Kudlow makes is terribly important so we are going to run the article anyway.
We need to overthrow the current economic establishment. It has failed, horribly. Globally we limp along, that is unless one is in South America and some other parts of the globe where the economy is barely moving at all.
This is from 2011 when the wounds of the Crash were still fresh.
Now we’ve been conditioned. Time has passed and the banks want you to forget what happened and the dull economic pain which still dogs the world.*
We at ACC will never forget.
At the end of this video is a very short ad for someone who was running for Congress. We do not endorse candidates ever. We don’t know who this person is.
Americans are debt addicts. They love to spend. The politicians love to spend. Everyday Americans love to spend. Spend, spend, spend. And we wonder why many things, our society even, feels so cheap.
People live on credit. They finance cars, houses, vacation – cell phones – think about that – PHONES. They don’t save.
And why should they? They get nothing for saving. There’s literally no real return on socking money away in a bank these days.
See, everyone likes to “worry” about the increasingly languishing middle class, but the answer to the problem is to directly challenge the powerful crony superstructure of politicians, economists, crony business people, crony interest group people, and various other hangers on who run the Show. And I am not talking about providing more jobs programs or college aid or some other economic trinket. The crony class, the political class, is more than happy to provide such “solutions.” In the grand scheme of things such programs cost them little.
There’s a press tent this year. That’s new.
As Boris Johnson says in the post we did earlier this morning, JPMorgan is underwriting the “remain” side of the Brexit vote. The big banks, the big crony corporations, the government cronies in Brussels and across Europe do not want to see Britain leave the European Union. Such a move will be a sharp rebuke of the current economic and political order on the Continent. (Not that Britain is The Continent –
Well, some people want the US to be more like Europe. So congrats. In Italy for instance it’s perfectly natural for 30 year old Giuseppe to live off of his parents. That’s the expectation in many cases and it is a reflection not only of a culture but of a poorer society and a less dynamic middle class.
That our president has promoted the below kind of post adolescent adolescence isn’t helpful either.
(From Pew Research)
The prime mover of crony capitalism is the Federal Reserve system.
The man who founded the religion which gave crony capitalism a degree of respectability for too long. J.M. Keynes.
We absolutely agree. As we have said in the past the effort is laudable and we will continue to watch it. And it appears that the folks at The Economist are heading in the right direction. The most recent edition is much better than the initial effort for instance. Our hope is that this trend will continue.
Indeed it is. Central planning always fails and make no mistake in many ways our economic system is “planned.” Not in the sense that it was planned in the Soviet Union but planned and controlled by the Federal Reserve through the manipulation of interest rates. The Fed creates malinvestment by trying to juice the economy. People over invest with cheap credit on office buildings, homes, cars, infrastructure projects and so on. Then when the reality of the economy hits this juiced economic situation failure occurs broadly.
China continues to shudder and it appears to be increasingly fearful. With the Saudis rattling their debt sabers, Europe looking at another summer of crisis (of various kinds), and just a general sense of instability in world economy and geopolitics, China hopes that the Fed will take the Red Dragon “into consideration.”
There is no doubt that China will be and is considered as Minister Zhu knows very well.
I’d love to know what the minister knows about the real Chinese economy.
Uh oh. Here comes the Federal Reserve to “save” us.
(From David Stockman’s Contra Corner)
If you don’t think the current central bank driven economic and financial bubble is going to end badly, recall a crucial historical fact. To wit, the worldwide race of central banks to the zero bound and NIRP and their $10 trillion bond-buying spree during the last seven years was the brain child of Ben S Bernanke.
He’s the one who falsely insisted that Great Depression 2.0 was just around the corner in September 2008.