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?