Economics

Obama Budget Contains Middle Class Income Tax Hike

"Chained CPI means the Obama budget contains a tax increase on 100 percent of middle class taxpayers (anyone who pays the federal income tax). Many other tax provisions—the standard deduction, the personal exemption, PEP and Pease, IRA and 401(k) contribution limits, and many others—are also tied to how CPI is measured. Chained CPI as a stand-alone measure (that is, not paired with tax relief of equal or greater size) is a tax increase and a Taxpayer Protection Pledge violation. Various reports peg the tax increase amount as exceeding $100 billion over the next decade." Continue reading →

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Bill Bonner: $10,000 each in two suitcases

"Price controls didn't work for the Romans. They didn't work for the Germans. They didn't work for the Zimbabweans or any of the other hundreds of governments that have tried them. But who knows? Maybe they'll work for the Argentinians. But inflation is just getting started here. The rate is officially about 10%. Unofficially, it's 30%. Officially, you can trade a dollar for 5.4 pesos. Unofficially, you'd be a fool to do so. The black market rate is eight to the dollar – and more. So what do we do? Every time we come to Argentina we bring the maximum - $10,000 each – in $100 bills. Then, when we need to buy things, we trade our dollars on the black market." Continue reading →

Continue ReadingBill Bonner: $10,000 each in two suitcases

Jim Rogers: ‘I Suspect They’ll Take the Pension Plans Next; I’m Taking Preparations’

"I was able to reconnect for an interview with legendary Quantum Fund manager and commodities bull, Jim Rogers. This was an especially groundbreaking interview, as Jim shared thoughts on what governments around the world will be taking next, and what he’s doing right now to protect his personal bank accounts following the Cyprus collapse. With respect to which assets governments will likely be coming for next, Jim said, '401k plans, IRA’s, and pensions plans which the government knows about [may be next]…They’re rationale would be, ‘Well most people haven’t been doing well in their IRAs and pension plans for the past several years, so we’re going to help you.'" Continue reading →

Continue ReadingJim Rogers: ‘I Suspect They’ll Take the Pension Plans Next; I’m Taking Preparations’

History’s Hidden Engine

"Chronicling the new and revolutionary science of socionomics, History’s Hidden Engine is the result of more than three years of research and dedicated filmmaking by David Edmond Moore. In just 59 minutes and with the help of pop songs, news footage and cultural images, this documentary explores how social mood drives trends in movies, music, fashion, economics, politics, the media, and even the stock market. Moore traveled North America to capture the insights of 17 brilliant minds at the vanguard of socionomic research, and the results are nothing short of astonishing." Continue reading →

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Florida bill designed to fight gambling scandal could cost state thousands of jobs

"The measure, House Bill 155, was passed by the state Senate on April 4 by a 36-4 vote, following a three-year investigation into racketeering, money laundering and other charges. The scandal led to the resignation of Lieutenant Gov. Jennifer Carroll on March 12. The new law effectively curtails the state’s so-called 'Internet cafes' — businesses that featured online games recreating slot machines. It also forbids arcades from letting customers use cash or debit or credit cards from operating their games and from handing out gift cards as prizes. Patrons must now use change to play, and winnings are capped at 75 cents." Continue reading →

Continue ReadingFlorida bill designed to fight gambling scandal could cost state thousands of jobs

Trouble on U.S. farms as growers seek workers and crops rot

"Here’s a mess with no easy fix: American crops going unpicked — it’s backbreaking work Americans won’t touch — and poor migrants in need of work shying from it for fear of being abused. Creating a program for temporary farm workers from Mexico and other countries to work the land, sow seeds or reap harvests is one of the touchiest aspects of the immigration reform that Congress is working on. Some 61 percent of growers in California report shortages of laborers, especially in labor intensive crops like grapes and vegetables, said Rayne Pegg of the California Farm Bureau Federation. So some crops are left to rot." Continue reading →

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The Luddites Among Us

"Luddite reasoning rests on this assumption: individuals who act in their own self-interest to buy lower-cost goods are acting against the interests of the nation. This was the argument of the mercantilists in the late 17th century. It was this argument that Adam Smith criticized in The Wealth of Nations. This is the essence of all systems of government interference into the economy. It says that politicians know better what is good for the nation than individuals do. It says that customers, who act individually to pursue their own ends as inexpensively as they can, are totally misguided. As individuals, they are making decisions that undermine their own wealth." Continue reading →

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A millionaire, a market crash and a murder

"He may have been dubbed the founding father of economics, but, when he was alive 300 years ago, banker Richard Cantillon drew the fury of angry investors who lost money in schemes he had recommended. He was jailed briefly, but emerged with the millions he made from share dealing and currency speculation intact. Sound horribly familiar? Cantillon was the first to use the term 'entrepreneur', describing the vital role of risk-takers and speculators in generating economic growth. He practised what he preached, and the financial risks he took made him one of the wealthiest men in the Europe of his day." Continue reading →

Continue ReadingA millionaire, a market crash and a murder

A millionaire, a market crash and a murder

"He may have been dubbed the founding father of economics, but, when he was alive 300 years ago, banker Richard Cantillon drew the fury of angry investors who lost money in schemes he had recommended. He was jailed briefly, but emerged with the millions he made from share dealing and currency speculation intact. Sound horribly familiar? Cantillon was the first to use the term 'entrepreneur', describing the vital role of risk-takers and speculators in generating economic growth. He practised what he preached, and the financial risks he took made him one of the wealthiest men in the Europe of his day." Continue reading →

Continue ReadingA millionaire, a market crash and a murder

How the Taxman Cleared the Dance Floor

"Clubs that provided strictly instrumental music to which no one danced were exempt from the cabaret tax. It is no coincidence that in the back half of the 1940s a new and undanceable jazz performed primarily by small instrumental groups—bebop—emerged as the music of the moment. How differently might bebop have been expressed if it had been allowed to develop organically instead of in an atmosphere where dancing was discouraged by the taxman? The cabaret tax was finally eliminated in 1965. By then, the Swing Era ballrooms and other 'terperies' were long gone, and public dancing was done in front of stages where young men wielded electric guitars." Continue reading →

Continue ReadingHow the Taxman Cleared the Dance Floor