Investment/Trends

Australia liberated from their long national green nightmare

"Tony Abbott has won the Australian election in a landslide, and vows to abolish the carbon tax as a first order of business. Abbott has declared Australia is 'once more open for business' in claiming victory in Saturday’s election. It is a huge blow to the Rudd-Gillard labor party and their green goals, which were built on a lie foisted on the Australian people. In 2010 when Gillard said 'no carbon tax' in a videotaped speech that has been seen as the key moment Australians lost trust. Then, shortly after she was elected prime minister, she acted as if those words were never spoken, and implemented a carbon tax anyway." Continue reading →

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Czech communists to return in office for first time since 1989

"Many people associate the Communists to 41 years of repression. But by being out of power for so long, the party has escaped the taint of sleaze that has tarnished the governments that took over from it. Sobotka added that if his party formed a government, its economic policy would be more leftist than the previous centre-right coalition government, with plans to raise taxes for the biggest corporations and for high earners. Jiří Stránský, a dissident writer imprisoned under Communist rule, said he believed today's Communists were dangerous populists. 'I am saddened that after nearly 24 years the country has ended this way, when we started out so amazingly,' he said." Continue reading →

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Belgium’s finance minister has no objection to bitcoin

"Minister of finance Koen Geens responded to a parliamentary question about bitcoin, commenting that he wouldn’t see the Belgian National bank having any objection to bitcoin, and stating that for the moment its use is limited to a handful of traders. Geens reportedly added that although privacy and anonymity were a big part of bitcoin, there was no indication that the cryptocurrency is used on a large scale for money laundering. Any exchange of large amounts of bitcoin would be detected by the financial control systems, he argued. Germany made its own advances in this area last month, when its own finance ministry officially recognized bitcoin as private money." Continue reading →

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An American Energy Revolution

"In Texas these days, there’s a feeling of absolute and unwavering confidence in the concept of an American energy revolution. From the depths of reserves to the richness of the energy, an incredible transformation is taking place. We’ve been talking about the significant impact of the U.S.’s oil production for a while now, but the buzz about shale oil and gas is only getting louder. One area that’s driving this game-changing trend is located only hours from our headquarters. It’s the Permian Basin located in western Texas and southeastern New Mexico, covering an enormous area." Continue reading →

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The Green Energy Religion Meets the Real World

"It seems political leaders in Europe have figured out that there are consequences for allowing faith to substitute for markets when it comes to energy. 'We face a systemic industrial massacre,' said Antonio Tajani, the European industry commissioner. Mr Tajani warned that Europe's quixotic dash for renewables was pushing electricity costs to untenable levels, leaving Europe struggling to compete as America's shale revolution cuts US natural gas prices by 80pc. Never fear – they have a solution: print money." Continue reading →

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Our Huge, Stinking Mountain of Debt: Student Loans

"Notice anything about this chart of student loan debt owed to the Federal government? Direct Federal loans to students have exploded higher, from $93 billion in 2007 to $560 billion in early 2013. This gargantuan sum exceeds the gross domestic product (GDP) of entire nations—for example, Sweden ($538 billion) and Iran ($521 billion). Non-Federal student loans total another $500 billion, bringing the total to over $1 trillion. Does this look remotely sustainable? Does it look remotely healthy for students, society, taxpayers now on the hook for a half-trillion dollars in potential defaults or the U.S. economy?" Continue reading →

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A Measure of Our Impoverishment (Which They Hope You Haven’t Noticed)

"The federal government can fudge – can outright lie – about the various indicators of economic health. Can shift perceptions of reality. But reality can’t be dismissed so easily. If it takes more dollars to purchase cocoa or sugar then the price of a Creme Egg or chocolate bar has to increase commensurately in order to maintain the same equilibrium between the cost to make the item and the profit it earns. When the economy is flooded with funny money, the value of a given thing remains the same but its apparent cost increases. It takes more sheaves of funny money to buy the same item. This is inflation." Continue reading →

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Helping the Dow Industrial Average to Climb

"The S&P Dow Jones Indices are dropping Alcoa, Hewlett-Packard, and Bank of America from the Dow Jones industrial average. Visa, Nike, and Goldman Sachs will take their place. The changes 'were prompted by the low stock price of the three companies slated for removal and the Index Committee’s desire to diversify the sector and industry group representation of the index,' according to a statement from S&P." Continue reading →

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Hong Kong Wrong [2006]

"Though a colony of socialist Britain, Hong Kong followed a laissez-faire capitalist policy, thanks largely to a British civil servant, John Cowperthwaite. Assigned to handle Hong Kong's financial affairs in 1945, Cowperthwaite was so famously laissez-faire that he refused to collect economic statistics for fear this would only give government officials an excuse for more meddling. The results of his policy were remarkable. At the end of World War II, Hong Kong was a dirt-poor island with a per-capita income about one-quarter that of Britain's. By 1997, when sovereignty was transferred to China, its per-capita income was roughly equal to that of the departing colonial power." Continue reading →

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Employment: Trending Down

"Charts and data provided by longtime correspondent B.C. reflect what many know from first-hand experience: employment is trending down. The growth rate of employment is declining over time, as positive growth weakens and recessionary declines deepen. Though the 3-year average annual change has improved to near-zero, the 5-year (i.e. longer-term trendline) is still solidly negative. There are two other trends in employment: 1. Decline of full-time jobs and the rise of part-time jobs 2. Stagnation of high-wage employment and increases in lower-wage job sectors." Continue reading →

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