A president who is truly out of touch: With the economy declining – possible worldwide recession, Obama wants huge new taxes on fuel

We like “green” energy. The water in my childhood home in the 80s was heated by solar panels. We like wind, and the rest. But we like it within the market.

Green energy can exist within the market despite what many people believe. In a world of 6 billion people and growing there is absolutely a market for cleaner energy sources. In many parts of the world solar particularly makes sense on micro levels. Lives can be made better with solar.

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Texas Economy Collapses – Dallas Fed Survey Crashes To 6-Year Lows As “D” Word Is Uttered

I was listening to an economist the other day talking about the continued slide in the price of oil. He said that despite the lower fuel prices there did not appear to be the significant bump in consumer activity as some have predicted.

We have argued that pressure from the low price of oil, caused in large part by the Saudis, would negatively affect the American heartland where the fracking revolution had been rolling. Now recession appears to be creeping across the prairie states and into Texas,

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George Soros: Chinese economy in for hard landing

As we have said before here, we do not particularly like Mr. Soros but he is someone who is worth listening to.

Word is that many people at Davos (the superconvention of financiers, economists, world leaders, and celebrities going on right now in Switzerland) have been trying to convince themselves that China is still going to be OK, that a “soft landing” can in fact be engineered in the Ultimate Crony Capitalist State. But there is a growing list of pretty smart people who think that a Chinese “soft landing”

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CNBC: A recession worse than 2008 is coming

Today
Image: CNBC

For the record, we have been calling this for a good while now. We warned of slowing in the Ultimate Crony Capitalist State, China. We warned that the great neo-Keynesian experiment was destined for an ugly end (and we are by no means the only ones who said this).

Is this THE turn? It looks increasingly so but the next few months will show us for sure. Will it be worse than 2008?

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How best to deal with recessions (A very timely video)

From the master Murray Rothbard.

Does one generally want to have long recessions or a short recessions? The answer seems obvious, most people would want shorter ones even if it meant a particular short recession was more acutely painful than a long one. Have the thing and then get on with life. But our fear of recessions, our fear of markets clearing, has created a  culture which insists that politicians (our oh so competent politicians) “do something.” In “doing something”

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Bank Of America Forecasts No Recession Until 2027 (If Ever), Sees S&P At 3,500 In 10 Years

All I know is that the B of A economist was seen driving around in this before he wrote the report.

Mark this post. No recession until 2027. Whoopee! Take that to the bank! Bank of America that is! Happy days are here again. Good thing the always reliable economists can see 12 years into the future. I, seriously, feel so much better about things. Just wonderful.

Heh.

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Billionaire Paul Singer on Chinese downturn, could cause “Global central bank panic.”

Are we too pessimistic with regard to China? Perhaps, but who really knows. Seriously, who really knows. The data out of the Ultimate Crony Capitalist State is poor. It is politically manipulated. No one really has a hard sense of what’s actually going on, including probably the Chinese government to a large extent.

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China likely to drag the world into global recession, Citigroup says

Actually not totally true.

China is, as we say, The Ultimate Crony Capitalist State. Business and government are an amalgam. Long a crony paradise where a premium was placed on compliance and government favor and not on real pricing.

It looks like reality is finally starting to hit however.

About 6 months ago I was talking to a China energy markets analyst and he explained the complexities of implementing a carbon tax regime in the country to me.

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So the market went up 441 points today, then dropped like a rock in the last hour of trading, finishing 204 points down

Image: Marketwatch

At the start of the day everyone had “plunge protection team” in the back of their minds. (Even if they wouldn’t say it.) It looked as if the short term fix was in. But it turned out to be more short term than many expected. When the dust cleared we were down, again, for the 6th day in a row.

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China, world economy spooking the Fed? No hike in September?

At this point any rate hike looks like a big giant excuse for people to sell off stocks. People want to sell, really sell, one can feel it, but people don’t want to fight the Fed. However, if Yellen shoots a flare into the sky people will move on it. People just want a reason. Which is why Yellen probably won’t move rates.

It would be a pretty bold move for Yellen to hike in the midst of what looks like a possible looming recession in much of the world (Brazil,

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Forget Recession: According To Caterpillar There Is A Full-Blown Global Depression

Caterpillar sales have been declining for over 2 years. Latin American sales have fallen off a cliff. Caterpillar makes heavy industry construction equipment. Draw your own conclusions.

It is interesting to note that the decline is not as sharp as during the “Great Recession,” it’s more stretched out and has been shallower. However it has been steady and steady declines are the thing of maturing depressions.

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The Ultimate Crony Capitalist State struggles with reality, “The beginning of a much larger turndown with China” (VIDEO)

It should be noted that when aspirational countries hit economic brick walls they often do not react well. Suddenly power shifts, as do markets and political perspective – in policy circles and in the general population. This creates instability, which threatens the powers that be. The powers that be then react.

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