Ron Paul has long been ahead of the curve. He anticipated the 2008 financial crisis. His “Ron Paul Revolution” was the seed which grew into the robust and mainstream libertarian tendency within the GOP we see today. And he was right on Iraq—it was a mistake of colossal proportions.
But while Ron Paul was predicting a Fed created economic catastrophe and outlining why it was that invading Iraq was wrong and indeed anathema to what America was supposed to stand for, the GOP was fully engaged in disavowing the spirit of Ronald Reagan (spirit) and embracing a big government philosophy.
The Bush years were years of big government “conservatism.” The neocon coup.
Iraq in many ways is what broke the modern—William F. Buckley, Jack Kemp, Ronald Reagan—conservative movement. Bush blew it up just like so many bridges across the Tigris.
Interesting because a whole lot of people disagree with the very very statist and crony Lula da Silva. In fact hundreds of thousands turned out in the street to protest this ongoing system (and the current president) just a few of weeks ago.
Menos Marx. Mais Mises.
A couple of years ago I spent an evening talking economics and entrepreneurship with the developer of the new gold backed cryptocurrency The Business Insider reports on below.
I’ll say this. Anthem is darn sharp and I love that he has named his currency the Hayek. He told me about this venture when we met and I am pleased to see that his dream has become reality.
A gold backed virtual currency is just smart.
This bill is probably a step in the right direction, but the focus should be first on auditing the Fed under a bright burning magnesium fueled light. We need to know what’s really going on in the institution before we can chart the best way forward. Open the beast up. Let’s see what happened in 2008/2009 and during the QE binge. Then we can tinker, or hack away, or blow up as needed.
It should be noted that Senator Warren, who is co-sponsoring this legislation in the Senate with Senator Vitter, opposes an audit of the Fed.
We are 6 years out from the Crash and everything still feels weird. The economy hasn’t come back. It’s a strange new beast. Alive and not alive. A zombie. Feasting on the last scraps of the real economy.
We all know it’s coming. We don’t know how it’s coming. But it’s like we are walking through the economic forest at night just waiting for a puma to take our head off.
Call it the new abnormal.
Since 2008 the world has been turned upside down. In our collective panic we have disrupted whatever used to pass for economic homeostasis. Now the globe is moving (moved) toward a negative interest rate environment for government bonds.
Please, take my money. I’ll pay you to take my money! Why am I paying a government to hold my money? Well, because the economy is so healthy of course.
Oh, it’s a bull market alright. Can nothing stop the QE induced party? The sun has come up and set a few times on this market, yet the DJ is still pumping the music and most importantly the drug dealers are still milling about the crowd.
Ibiza in pinstripes. Or if you prefer Las Vegas in pinstripes.
They say “don’t fight the Fed.”
This has been especially true from an equities investment perspective since the Crash.
The question now though is how much fight is left in the Fed.
My colleague Hunter Lewis has this to say about Paul Volcker –
“Volcker really cares about the poor and the middle class. He is also scrupulously honest, not a scintilla of cronyism or corruption in him. And he has even admitted that the financial system was actually more stable before the creation of the federal reserve.”
The central banks don’t like that cash makes it hard to cut rates to below zero. 0% is pretty much as far as they can go (though there are exceptions such as in Denmark.) Boomberg reports;
Let’s get one thing out of the way. Both Paul and and Cruz are libertarianish. Paul more libertarianish than Cruz. Neither however is really pushing a hard core liberty oriented agenda.
In the attached article Paul and Cruz aren’t the real focus anyway. Crony capitalism is.
The author tries to make the argument that crony capitalism is what capitalism actually is. There is no distinction between capitalism partnered with the state and capitalism in general. It’s the same phenomenon.
This is the argument that many big government people try to make all the time on this site, because it is what fits the statist worldview. It is what people have been taught all their lives. I was certainly taught this.
On one side are the “progressives,” owners of progress, good government, making the world better and more fair. On the other side there are the “capitalists” monsters of greed and exploitation. Angels and demons.
This worldview is as simple as it is simple minded.
Iceland stands like a sentinel at the gates of the Arctic and astride the Mid-Atlantic rift. Part of Scandinavia but also the last stone hop to North America it is a place which breeds peculiarity. With a population of under 330,000, less than the population of Wichita, Kansas, this peculiarity is compounded. Throw in month long winter nights and communal hot spring spas and one can understand why the tiny country produces such weird (and often interesting) furniture, music, and economic ideas.
Attached Ash Navabi at the Mises Institute examines one of Iceland’s most recent idea exports, sovereign money.
Water policy in California is bizarre. I had no idea how bizarre until Jerry Brown declared his water emergency last week.
With 39 million people living in a semi-arid to desert environment (at least the southern 2/3 of California) doesn’t it stand to reason that at some point water might become a critical issue? A really critical issue? Doesn’t it also stand to reason that the people of California should be priority number 1 when it comes to water, not a politically powerful agriculture sector which only constitutes 2% of the California economy while taking 80% of the water? (Though there are of course apologists for ag.) But the “planners,” like they always do, thought they had the situation in hand.