Yearly Archives: 2013

The Danger of an All-Powerful Federal Reserve

"How will home builders react if the Fed decides their investments are bubbly and restricts their credit? How will bankers who followed all the rules feel when the Fed decrees their actions a 'systemic' threat? How will financial entrepreneurs in the shadow banking system, peer-to-peer lending innovators, etc., feel when the Fed quashes their efforts to compete with banks? Will not all of these people call their lobbyists, congressmen and administration contacts, and demand change? Will not people who profit from Fed interventions do the same? Willy-nilly financial dirigisme will inevitably lead to politicization, cronyism, a sclerotic, uncompetitive financial system and political oversight." Continue reading →

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Have You Heard the One About the Fiat Money Printing Central Banker?

"Here’s the abstract from a new paper in the October 2013 issue of Economic Inquiry: 'During their meetings, the members of the Federal Open Market Committee (FOMC) make monetary policy, but they also make each other laugh. This article studies the amount of laughter elicited by members of the FOMC during their meetings. The study finds that a member elicits more laughter if he or she expects higher inflation, other things being equal. This finding suggests that members may use humor to cope with the threat of inflation. (JEL E52, E58, C23)' They use humor. One wonders what savers and pensioners use." Continue reading →

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The Technical Bankruptcy of the Government Is Kicked Out Another Six Weeks

"The U.S. government's debt has been locked in at this implausible limit for three months: $16,699,396,000,000. The Secretary of the Treasury says that it will not hit the ceiling until mid-October. This warning is silly. The U.S. government has obviously been over the limit ever since late May. The world knows this. There is no way that the debt simply stopped growing. There is no good reason why the government cannot report this same figure from now on. If the government can legally cook the books from May 17 until today, and promises to cook them until mid-October, and no one in Congress asks how, then why not for two more months, two more years, or forever?" Continue reading →

Continue ReadingThe Technical Bankruptcy of the Government Is Kicked Out Another Six Weeks

Who Will Punish Americans for Their Manifest Violations, Joe?

"Americans can expect to be attacked in the future by those seeking to 'punish' them for a very long list of their own manifest violations of not only international norms, but more importantly international laws that their government has signed on to and then brazenly broken. In other words, the White House is digging the graves of Americans and lowering their security by lowering the bar for what it takes to attack another country. Why can’t some other country claim that the Kent State massacre, or the Waco massacre, or the attack on Iraq, or bombing Libya, or bombing Serbia, or killing innocents by drones, or the sanctions on Iraq that killed 500,000 children, or removing the government in Afghanistan?" Continue reading →

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Even Eurocrats Realize that Taxes Can Be Too High

"Tax increases imposed by the Socialist-led government in France have reached a 'fatal level', the EU's commissioner for economic affairs said today. Olli Rehn warned that a series of tax hikes since the Socialists took power 14 months ago – including €33bn in new taxes this year – threatens to 'destroy growth and handicap the creation of jobs'. President Hollande has kept his electoral promise to attack French deficits and accumulated debt. He has done so, however, almost entirely by tax increases rather than by cuts in a state apparatus which swallows 56.6 per cent of the country’s GDP. It has emerged that final budget plans for 2014 will include at least €6bn in tax rises." Continue reading →

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France: A Proud Nation Ponders How to Halt Its Slow Decline

"Can the Socialist government of President François Hollande pull France out of its slow decline and prevent it from slipping permanently into Europe’s second tier? At stake is whether a social democratic system that for decades prided itself on being the model for providing a stable and high standard of living for its citizens can survive the combination of globalization, an aging population and the acute fiscal shocks of recent years. Changing any country is difficult. But the challenge in France seems especially hard, in part because of the nation’s amour-propre and self-image as a European leader and global power." Continue reading →

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France ‘ready to punish’ Syria over chemical weapons strike

"French President Francois Hollande upped the ante, pledging to 'punish' the regime over suspected chemical attacks and boost military support for the opposition. Hollande will on Thursday meet the head of Syria’s main opposition group, which has blamed the regime for a suspected gas attack that it says killed more than 1,300 people. The alleged attack has prompted increasingly frantic calls from Western and Arab nations for action against the Syrian regime, which denies any involvement. Sources close to Hollande say one of the options for France would be to deploy the Charles de Gaulle aircraft carrier off the Syrian coast. Hollande said the Syrian conflict threatened 'world peace.'" Continue reading →

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Hold US Policymakers to Their Abysmal Record on Foreign Meddling

"The media never holds anybody to either their predictions or their results–officeholders, politicians, and of course their own pundits. And it’s a good thing for people like Bill Kristol, John McCain, and Lindsey Graham. No matter what the overseas 'crisis' or where it is, they are gung ho about sending either U.S. forces or U.S. arms into the fray. Recently, these war hawks have been pounding the drums for U.S. greater intervention in Syria. Their argument isn’t that the Syrian rebellion will fall apart if the United States doesn’t provide arms, it’s that when the insurgents finally take over Syria, the U.S. will won’t have much 'influence.'" Continue reading →

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Obama’s visit to Israel gets an official logo

[February 2013] "Netanyahu won a smaller than expected victory in elections in January. In the run up to the American elections last November, Netanyahu was perceived as favoring Republican nominee Mitt Romney for president. The office of Israeli President Shimon Peres announced Monday that Obama would be presented with the Presidential Medal of Distinction in March, according to the Guardian. It would recognize Obama's 'unique and significant contribution to strengthening the State of Israel and the security of its citizens.' The prime minister's official Facebook page offers these three choices for logos to represent Obama's visit." Continue reading →

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Who Funds the War Party?

"I use the 'War Party' phraseology as shorthand for a number of different groups and individuals, all of whom are linked by an ideological and/or financial interest in promoting a foreign policy of perpetual war. This includes those groups pushing for budget-busting 'defense' outlays, as well as those whose commitment to militarism is more ideological. Then there are the foreign lobbyists who have an interest in maintaining and expanding the American Empire: and while there are a number of foreign interests involved in this vector, the one that stands out on account of the sheer quantity of its resources is the Israel lobby, which combines a rich source of funding with ideologically-based activism." Continue reading →

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