Government Debt Addiction | Judge Andrew P. Napolitano

I like Judge Napolitano! He has a rather somber warning here relative to our nation's debt:

Debt is destructive....the government will never pay it back...spending our prosperity to pay the nation's debt. Cheaper for people to not work...and be supported by the government?!

We got trouble right here in 'Mer-ca!

The NSA is Coming to Town?!

Oh dear...I discovered that I'm in league with the ACLU! Watch the video to the end to see what I mean...

If nothing else, something "light hearted" for your Friday afternoon.

The True Impact of the Administration's Healthcare "Inaccuracies"

These Charts Show the True Impact of the Administration's Obamacare Lies - Economic Intelligence (usnews.com)

Ha ha...  Now, here's what I want to know: How is it that if a part of the Affordable Care Act doesn't work or a major constituency doesn't like certain provisions then the President just waives or delays its implementation?

Maybe he lied?  Maybe he didn't.

I was under the impression that this was a LAW. Laws are enacted by the United States Congress and signed by the President of the United States. Then we, the people, follow those laws. Regardless of its merits, as the President has noted, it is the law. How can it then be arbitrarily altered and/or not implemented without changing the law?

Maybe he needs a little re-education (and so do many in Congress):

How we make laws in the United States of America

Your tax dollars at work...really?!

Your federal tax dollars...hard at work...promoting the Affordable Care Act: Seriously?!

I'm certain that this marketing effort is causing those that don't need or want health insurance (like the individuals depicted) to enroll in the program. Wow...what fun they're having!

Happy Monday! Have a great week...those guys certainly are?

Occupy ... the White House?

Remember those Occupy [insert your city name here] protests that occured a few years ago? Those happenings all seemed like a bunch of has-been-hippies having one last hurrah about the evil 1%. What if...What if they were actually onto something, even if in some chaotic manner?

The interesting thing is the possible source of the enrichment of the 1%:

Five years of Obama's Wealth Redistribution — Knowmadic Life

The Knowmadic Life article can be summarized as such:

"Printing money does not create wealth. It redistributes existing wealth. It is a covert wealth redistribution from the poor to the rich."

Whether intentional or not, wealth redistribution has been the effect of the policies of the Federal Reserve Bank and our government's administration, aided and abetted by Congress.

Soon it will be time for someone else to occupy the White House...not soon enough for many. Hopefully, that occupant won't be about maintaining the status quo! 

Remain Calm ... All is Well!

And now, an important message from your Federal Government"



Happy Friday!

Let the Affordable Care Act Collapse?!

Seems like the Unaffordable Care Act may crash on it's own...why do the Republicans fret so much about it?Just let it crash and burn. A bit of a metaphor for your consideration:

"Opps!"

Trouble is: the ACA may just set the whole economic house on fire. Check out Danny Henninger's Wall Street Journal editorial on this:

Daniel Henninger: Let ObamaCare Collapse - WSJ.com

Everything's Fixed, Everything's Great

Something for your Friday afternoon entertainment!

oftwominds-Charles Hugh Smith: Everything's Fixed, Everything's Great

Right!?

David Stockman On "The End Of The American Imperium" | Zero Hedge

Well, Stockman sums it up pretty well:

"Next week Congress can do far more than stop a feckless Tomahawk barrage on a small country which is already a graveyard of civil war and sectarian slaughter. By voting “no” it can trigger the end of the American Imperium - five decades of incessant meddling, bullying and subversion around the globe which has added precious little to national security, but left America fiscally exhausted and morally diminished."

Check out his commentary...let me know what you think. I say voting "no" is a good idea!

To War!? I think not!

Tim Shoemaker @ Campaign for Liberty argues against military action in Syria.  He says:

"The world is filled with bad men, many of whom (unfortunately) find themselves in positions of power ruling with an iron fist over their citizens. The US has no moral, nor more importantly, constitutional authority to go around the world defeating evil men, simply because they are evil."

Something to think about today: Should the United States risk more of its sons and daughters lives and its treasure (that it doesn't have) to teach a bad guy a lesson? Or, to do so to help those that are it's enemies?

To War! - Campaign for Liberty

I think not!

Fear not...all is well or, the end is near?

Fear not...all is well or, the end is near!  The linguistic machinations of one James Howard Kunstler for your Monday entertainment:

The Self-Rehypothecation of Ben Bernanke | KUNSTLER

Oh...We Got Trouble! Terrible Terrible Trouble!

▶ The Music Man - Trouble... right here in River City! - YouTube
Oh...We got trouble alright, and not just in River City, IA!

Where's the Music Man when we need him?

Just a little entertainment for your Thursday...have a nice day!

Is giving up privacy to gain security worth it?

Our privacy is something important. Allowing the U.S. Government to invade that privacy, guaranteed by the U.S. Constitution, in the name of security may have serious consequences:

Peggy Noonan: What We Lose if We Give Up Privacy - WSJ.com

She says, quoting Nat Hentoff, the great journalist and civil libertarian : If massive surveillance continues and grows, could it change the national character? "Yes, because it will change free speech."

Something worth considering? I think so. I don't believe I'm as willing to give up privacy to gain security as I used to be.

In the Valleys of Blog | KUNSTLER

I found this a somewhat entertaining bit of sarcasm regarding the state and direction of the US economy. Kunstler likens it to the tattoo nation and makes the following observances:

"...there’s the non-theoretical, non-financial economy, which is now apparently based on the trade in tattoos, and the journey by automobile from the nearly foreclosed home to the tattoo studio, and to the hamburgers, pizzas, and fried chicken thighs consumed on each end of the journey. Judging from the sheer number of tattoos-per-capita, one might think that a certain tattoo saturation point had been reached in this country, unless the market can be expanded, say, to maternity wards where newborns can get full “sleeve” and neck jobs on Medicaid."

Or, regarding Larry Summers as the next possible chairman of the Federal Reserve Bank:

"This is the same Larry Summers who remarked not long ago that Quantitative Easing was not an effective way to stimulate the economy. Apparently he did not notice that QE is wonderfully effective for juicing the tattoo economy because it produces vast new quantities of citizens who perceive themselves to be losers.   ...I don’t think a more perfect figure might be found for piloting the garbage barge of American finance over a Niagara Falls of consequence."

(Disclaimer for those that might care: I don't automatically equate tattoos with losers but, just thought this an entertaining viewpoint.)

Hope your week is a great one!

Merle Hazard - The Great Unwind

Why...it's horrible (the song?) and true all at the same time!

USA - "Laboring Under A Conclave Of Would-Be Wizards" | Zero Hedge

I don't know about the timing...the fall this fall but, I'm surprised that our nation has been able to perpetuate the status quo as long as it has. I thought James Howard Kunstler's perspective interesting on where we are and where we may be going soon. In part, he says:

"Historians will remark that it was a beautiful August with bright days and cool nights for sleeping, and the Hamptons were ablaze with self-satisfied egos, and that nobody was paying attention to all the mischief that was set in motion the previous spring, not to mention the many seasons of bad behavior that preceded it. And when they returned from vacation, lo, the world was in crisis. What a surprise."

Indeed, a surprise it will be to many!

When people talk about the Fed "tightening" or "tapering" what does that mean? — Knowmadic Life

When people talk about the Fed "tightening" or "tapering" what does that mean? — Knowmadic Life

A simple(?) explanation of the Federal Reserve Bank is up to with interest rates and quantitative easing (QE) and why they've made a mess of things...in case you're interested.

Seth Klarman Is "Very Worried About The Future" In A World That Is Living On A Prayer | Zero Hedge

This seems worth a read...

Seth Klarman Is "Very Worried About The Future" In A World That Is Living On A Prayer | Zero Hedge

Who is Seth Klarman you ask: http://en.wikipedia.org/wiki/Seth_Klarman

And he's worried?!

Trying To Stay Sane In An Insane World - Part 1 | Zero Hedge

Sometimes it feels like everything is spinning crazily out of control...more often these days than not. The Burning Platform provides an interesting, and somewhat long winded, discussion of the insanity of our times...maybe this is the cause of my feeling things are really out-of-control, crazy. Just what are the facts, at least economically, and how do those facts measure up the behavior of our leaders and of our society today?

Guest Post: Trying To Stay Sane In An Insane World - Part 1 | Zero Hedge

Future trends for manufacturing and possible impact on China

Fascinating [a bit of a hyperbole?] article about the effect of the internet upon manufacturing and its economic effects, especially upon China.

The Credit Crisis May Not Be China's Biggest Problem | Zero Hedge

The author, Asia Confidential, makes some suggestions about how China should prepare:

"China needs significant changes though, such as:

• Government-owned companies which dominate much of manufacturing need to be privatised.
• Small entrepreneurs need greater incentives including grants, tax breaks in key areas.
• The legal system needs to be changed to allow competition to flourish and re-dress when it's not allowed too.
• Better and more transparent licensing to give great security to manufacturers in their endeavours.
• Changes to education to encourage innovation and creative thinking. Currently, high schools and universities in China put far too much emphasis on learning via memorisation. I'd argue that this explains much of why China has excelled at copying the inventions of others in recent years, rather than creating their own."

My opinion is that these ideas, on the whole, could be applied equally well in the United States. Think about it!

In the mean time maybe I should buy stock in companies making 3D printers?

A game plan for tax reform?

Well...now here is a common sense proposal for tax reform from former Senator Phil Gramm...I like his ideas:

A GOP game plan for tax reform - Economics - AEI

My guess is that it makes too much sense and threatens the status quo...chances of moving forward with any of these ideas...minimal.

Too many interests to be harmed...CPAs, tax attorneys, IRS employees, other industries that profit from the misallocation of capital resulting from a convoluted tax regime!

Monday Thoughts: Gettysburg and the Eternal Battle for a "New Birth of Freedom"

Allen Guelzo: Gettysburg and the Eternal Battle for a 'New Birth of Freedom' - WSJ.com

So says Mr. Guelzo: The age of plantations and masters has passed away, helped in no small measure by the people who rallied to Lincoln's challenge. But the perverse suspicion that the people understand too little to determine their own fate has by no means disappeared. And if it no longer marches in epaulets and cocked hats, it still speaks in the accents of efficiency and centralization. Not hierarchy, but bureaucracy, has become the new agent for imposing stability and "fairness" handed down from on high

Hmm?

Strange things afoot in finance-land today!

Trader Dan: a voice of reason among a sea of knuckeheads:

Trader Dan's Market Views: A LOOK AT THE BOND CHART

His summary: SOLE CAUSE OF THE WILD, INCESSANT AND UNPREDICTABLE VOLATILITY IN TODAY'S FINANCIAL MARKETS IS EVERY BIT THE CONSTANT INTERFERENCE BY THE CENTRAL BANK

Definitely troubling moves today in the financial markets...bond rates, etc. It will be interesting to see the outcome of the next few days!

Kyle Bass: "The Next 18 Months Will Redefine Economic Orthodoxy For The West" | Zero Hedge

Who's Kyle Bass??? Kyle Bass Bio I guess he's a hedge fund manager of some renown. Mr. Bass makes some interesting comments in a Q&A session as highlighted by Zero Hedge:

Kyle Bass: "The Next 18 Months Will Redefine Economic Orthodoxy For The West" | Zero Hedge

I'll watch the video at lunchtime...as I'm supposed to be working now but, the highlights make it look scary interesting!

Ron Paul Interview Discusses Fiscal & Monetary Policy, Gold and Civil Liberty - PeakProsperity.com | Peak Prosperity

I'm liking this guy more and more...sorry I ignored him during the last presidential election.

Ron Paul Interview Discusses Fiscal & Monetary Policy, Gold and Civil Liberty - PeakProsperity.com | Peak Prosperity

Thought Experiment: Why Do We Bother Paying Personal Taxes? | Zero Hedge

If our government can just borrow and spend without any real long-term consequences, why make half efforts with it? Why not finance everything our government spends? Then we wouldn't have to pay any income taxes at all!  Awesome idea!!!

Thought Experiment: Why Do We Bother Paying Personal Taxes? | Zero Hedge

Maybe we won't do that because the current borrowing and deficit spending regime is really a really bad idea which will have severe consequence sooner than later. And many are already being harmed by this course of action.

Zombie: Karl Marx was a Tea Partier

The notion seems crazy from a traditional perspective but, Zombie does make some sense here. His conclusion:

"The Tea Party is a workers’ revolution. Modern “progressivism” is a reactionary totalitarian movement. The sooner that honest Marxists grasp this, the sooner “the people” can achieve liberation."

Karl Marx - Tea Partier

Check it out...worth the read! (Interesting analogy of the United States.)

Preparing for Economic Collapse | Peak Prosperity

You're thinking...the poodles have watched too many episodes of "Doomsday Preppers". (Not so...they think the show depicts behavior that is annoyingly over-the-top) but, the poodles do believe that the United States (and much of the world) is headed for an economic collapse. And to be ready the following article makes some suggestions:

Preparing for Economic Collapse | Peak Prosperity

It's steps for preparation are not all that complicated or mysterious and don't involve obtaining a subterranean bomb shelter or a paramilitary arsenal to battle it out with the zombies. Instead, some common sense moves to prepare for possible collapse are suggested, based upon the author's experience living through a collapse that happened in Argentina:

Step #1: Secure a percentage of your savings in bullion.
Step #2: Stock up on food
Step #3: Acquire the essentials by putting together a survival/emergency kit
Step #4: Improve your personal and home security
Step #5: Embrace a different mindset

The author also addresses what the atmosphere of hyperinflation looked like during that time...interesting...and it could happen here.

Hey dude, where's my inflation? — Knowmadic Life

Interesting article explaining the lack of inflation in the face of the Federal Reserve's massive money generation. Why have we experienced relatively little inflation when each dollar generated makes each existing dollar worth incrementally less...and the Fed has generated trillions of new dollars? Doing so should make the price of goods purchased incrementally increase but, it has not. Instead, that cash has gone to inflate the stock markets values...makes sense to me.

Hey dude, where's my inflation? — Knowmadic Life

At some point, those dollars will have a negative impact on inflation and our economy but, when and how will it happen? Maybe, the Fed and the world's central bankers have it all under control? Probably not though as history shows the results of crazy levels of money generation.

The Monarchs of Money - Video exploring the actions of the world's central banks

The world's central banks have printed unimaginable amounts of money in recent years. Neil Macdonald explores what this means for the global economy and for your financial well-being.

Interesting look at the role of central banks and their monetary policies. Might be helpful in understand what they're trying to accomplish and the present and possible consequences of their actions.

Central Banks Destroying "The Value Of Money" And "Uprooting The Basic Stability Of Society" | Zero Hedge

Comments on the likely outcome of the world's central banks policies:

Elliott's Singer On Bernanke Destroying "The Value Of Money" And "Uprooting The Basic Stability Of Society" | Zero Hedge

Long but, interesting, including Mr.Singer's comments about gold as money.

46,455 Background Checks For Gun Purchases Each Day Under Obama | CNS News

Hmm...those stupid 'mericans, clinging to their religion and guns.

That's a whole lot of guns purchased: 72,005,482, since Mr. Obama became President. I wonder how that compares with past administrations? If sales continue at their current pace for 2013, there will be 26,000,000 background checks/purchases recorded...never mind the private sales.

46,455 Background Checks For Gun Purchases Each Day Under Obama | CNS News

Here's some charts and statistics about guns from the ATF... only through 2010. They're a little behind there...due to the sequester and all:

http://www.atf.gov/files/publications/firearms/050412-firearms-commerce-in-the-us-annual-statistical-update-2012.pdf

Consumption v. Investment - Part 2

As a follow up to April 24th's post, the Wall Street Journal, making the same distinction between borrowing for investment and growth purposes vs. borrowing that is simply consumed:

Review & Outlook: Debt and Growth - WSJ.com

The editorial concludes: "After five years of trying, we should know this doesn't work. The real way to promote a stronger economy is more austerity and reform in government, and fewer restraints on private investment and risk taking."

I'm not sure what they mean by austerity but, otherwise I agree. If austerity means that the government gets out of the retirement and healthcare business, amen.

Investment v. Consumption

Sounds like some intellectual name calling going on here:

oftwominds-Charles Hugh Smith: Why Krugman and the Keynesians Are Lackeys for the Neofeudal Debtocracy

Well worth the read but the bottom line: spending needs to be productive to be considered an investment. Otherwise, that spending is simply consumption. And...in our present world...the deficit spending that is supposed to be  causing the economy to grow is in fact grossly misallocating resources in non-productive ways and has enslaved us to debt.

Oh River City we got trouble with a capital "T"....

The Definition of Insanity...

It's not working...continuing to pump trillions of dollars, euros, yen, etc. into the world economy...but, if we just keep doing it, maybe it will start working? Maybe the world's economy will begin to grow again and we'll be able to get out of this morass of debt?

Didn't Albert Einstein say something like: "We can't solve problems by using the same kind of thinking we used when we created them."? Isn't that the definition of insanity: doing the same thing over and over and expecting to achieve results different from the ones being attained?

So, are the world's economic leaders insane? Maybe they just like to devalue their nations' currencies? Or, are they up to something else? Zero Hedge addresses some of the possibilities beyond insanity:

Guest Post: The Global Status Quo Strategy: Do More Of What Has Failed Spectacularly | Zero Hedge

So many questions!

A Couple of Things You Should Know About The Stock Market | Zero Hedge

Some excellent points to consider re: our manipulated financial markets and likely outcome of that manipulation. Hint: the great Keynesian experiment won't turn out well.

Guest Post: A Couple of Things You Should Know About The Stock Market | Zero Hedge

Trader Dan's Market Views - April 10, 2013

Trader Dan, insightful as usual, discussing fiscal policy and financial markets...

Trader Dan's Market Views: Gold Chart by Request: H ere's a look at the latest after today's sharp selloff in gold. Note that the metal is approaching the support zone which has held...

The cost of capital - Economics - AEI

Mmm...those pesky unintended consequences of Dodd-Frank. We're gonna make sure these too-big-to-fail/jail banks don't fail! But, then that capital is unavailable to be loaned to others.

The cost of capital - Economics - AEI

Does Government Create Jobs?

No it does not...but, it can help create an environment in which job creation is encouraged: lower taxes, less regulation, less market meddling. Check out the video...Does Government Create Jobs?

Zombie » Protesters greet Obama on S.F.’s Billionaires’ Row

Zombie ... an always entertaining and engaging look at protests. Great pictures and witty thoughts about protest participants:

http://pjmedia.com/zombie/2013/04/07/protesters-greet-obama-on-s-f-s-billionaires-row/

Consumer credit mainly student-and-car-loans

Consumer credit mainly student-and-car-loans
I don't know why I'm surprised by this. Naturally, I would think that new consumer credit being incurred was through credit card usage. Wrong! Student loans and car loans...by far...eclipse credit card debt.

The student loan indebtedness being incurred is sure to be a source of financial woe for those that went to schools that charged too much (because they could get paid whatever they charged) for an education that didn't equip their students with skills that allowed them to get a job that returned anywhere near what they (and the taxpayers) invested in that education. Has a student loan "bubble" been created that will eventually burst with massive defaults or more likely, with the U.S. taxpayers left to clean up the mess in some way...with another bubble to burst somewhere else?

Maybe the government should get out of the business of making sure that everyone have a post-secondary education no matter the cost? But, oh, that wouldn't be fair! It is bad policy and definitely not a function for our government.

Never mind the car loans!

The Great Disconnect - Markets Vs. Economy | Zero Hedge

Good explanation of stock market valuation v. economic health:

Guest Post: The Great Disconnect - Markets Vs. Economy | Zero Hedge

Dylan Grice Explains How "Crackpot" Central Bankers Are Destroying Society | Zero Hedge

Interesting article about societal trust and the meddling of central banks. Worth the read and some thought!

Dylan Grice Explains How "Crackpot" Central Bankers Are Destroying Society | Zero Hedge