What happened to all of the doom and gloom economic threads?

[richard_daily]

Because, not only did you make a lie about what I said and refused to prove or back it up with a quote, but when called out on it, you doubled down on the lie LIKE CAPS AND BOLDING WERE THE ARBITERS OF TRUTH...



But that's just what Democrats do.

We're all Cherokees now.

Born in Kenya...

What lie did he make?

If he's lying about something, shouldn't you go in there and give him a smack down about it.

You're really a piece of work.
How someone goes through life as willfully ignorant as you are, is absolutely fascinating.

 

[rosco rathbone]

What's all the excitement about? AJ is a hardcord mises.org libertarian. He's already on record as opposed to Medicare, SS and government schools as weakening the moral fibre of the populace.

 

[RobDownSouth]

There wasn't a lot of blogging then, but I did make a lot of use of Bill Clinton's papers and research on Education when he was governor of Arkansas for one of my papers.

If all you can do is attack to make your points, then you don't have points other than partisan talking.

See, with guys like you, your education tells you that now you "know" things, so there's no need to do any real research, just do with your gut and what medical school (if you even attended one that speaks English) taught you about economics...

"It is not half so important to know as to feel."
Rachel Carson

^^^^Awwwww....look at all the butthurt up there!!

Poor sissybitch AJ bet the farm on economic doom 'n gloom persisting up through the 2012 presidential elections.....

But even a hard-core partisan like AJ cannot dispute that we're in an economic recovery now (despite the best efforts of his Republican comrades-in-arms), so now we get daily cut-n-pastes of "But....but...back in 1790!!" and "But....but....Greece!" and other misdirection ploys.

AJ is hopin' and prayin' for a stock market crash between now and election day to prevent four more years of a nigger president.

 

[unregistered]

 

[RobDownSouth]

You gotta admit those systems are bankrupt.

The Social Security Retirement System is not bankrupt and will never be bankrupt, you dumb son of a bitch.

 

[richard_daily]

The Social Security Retirement System is not bankrupt and will never be bankrupt, you dumb son of a bitch.

Much like the words; communism, socialism, and marxism, he doesn't understand the definition...

 

[pete]

What lie did he make?

If he's lying about something, shouldn't you go in there and give him a smack down about it.

BO, Feb 2009:
“I will be held accountable,” Obama said. “I’ve got four years and … A year form now, I think people are going to see that we’re starting to make some progress, but there’s still going to be some pain out there … If I don’t have this done in three years, then there’s going to be a one-term proposition.”

by seeking re-election, didn't he turn *this* into a lie? obama himself deflects by saying that things are better (not at all true, based on many economic indicators) but he said he'd have it done in 3 years.

i'm not even going to hold you to this as evidence of a lie or not, since it's moot. it's actually a bigger example of how he's the kind of guy who'll say anything at all to get elected/stay in office. so, in other words, a typical full-of-shit politician. not someone who's different or special, not someone who is gonna do things better or with more integrity or with more intelligence than previous leaders. he's a run of the mill career politician who only knows how to bullshit, deflect, misdirect, and smile at the camera.

 

[4est_4est_Gump]

This is getting hilarious...



World markets rising on hopes that China will follow them down the spending hole.

lmao

 

[4est_4est_Gump]

Meanwhile, government keeps proving how responsible it is and why you should put so much trust into it...

SACRAMENTO, Calif. (AP) - After the 2001 terrorist attacks, California lawmakers sought a way to channel the patriotic fervor and use it to help victims' families and law enforcement. Their answer: specialty memorial license plates emblazoned with the words, "We Will Never Forget."

Part of the money raised through the sale of the plates was to fund scholarships for the children of California residents who perished in the attacks, while the majority - 85 percent - was to help fund anti-terrorism efforts.

But an Associated Press review of the $15 million collected since lawmakers approved the "California Memorial Scholarship Program" shows only a small fraction of the money went to scholarships. While 40 percent has funded anti-terror training programs, $3 million was raided by Gov. Jerry Brown and his predecessor, Arnold Schwarzenegger, to plug the state's budget deficit.

Millions more have been spent on budget items with little relation to direct threats of terrorism, including livestock diseases and workplace safety.

Moreover, the California Department of Motor Vehicles has been advertising the plates as helping the children of Sept. 11 victims even though the state stopped funding the scholarship program seven years ago. The specialty plate fund continues to take in $1.5 million a year.

HANNAH DREIER
http://apnews.myway.com/article/20120529/D9V27FPG3.html

 

[4est_4est_Gump]

[An earlier version of this article appeared on Forbes.com, April 27, 2012.]


To Austrians, all economic "booms" founded on monetary largesse always end in economic busts, roughly equal in size and intensity to the preceding booms. By distorting interest-rate and price signals and, as a consequence, creating malinvestments that must eventually be liquidated, monetary booms necessitate economic busts. This is true regardless of whatever short-term benefits the economy or financial markets appear to enjoy from this largesse. And whether that largesse originates via the creation of central-bank base money (through central-bank asset-purchase or loan programs) or via bank-issued on-demand deposit liabilities in excess of bank reserves or what Austrians call uncovered money substitutes (when said banks are making loans or purchasing assets), in the end the result is always economic busts.

Our broad and preferred money supply metric — TMS2 (True "Austrian" Money Supply) — posted another double-digit year-over-year rate increase in March, this one coming in at 14.5 percent. That makes 40 consecutive months of double-digit year-over-year rate increases. To state the obvious, we are in the midst of a monetary explosion.

[see chart at link]

To Austrians, this not only means we are looking at another economic bust but, given the size of this building monetary boom, a bust with a real possibility of surpassing anything we have seen in the recent past. Yes, even the housing boom turned bust turned Great Recession.

Building on an essay we wrote in March, here's the why, how, and when on what we are dubbing the "Bernanke boom–bust-to-be," named after the man most responsible for its genesis.

http://mises.org/daily/6054/The-Bernanke-Bust

 

[justaguyathome]

Its Easy..

Just stay scared like they tell us to be and let the government do what it wants... dont think about it... it will give you headaches!

 

[4est_4est_Gump]

Devaluing against Other Fiat Currencies

The devaluation advocated by many economists today is quite different in one regard. There is no commodity reserve — gold or silver, for example — against which the nation's currency is to be devalued. Modern devaluation advocates refer to the currency's value, or exchange ratio, in relation to all other fiat currencies. The exchange value between currencies is governed by purchasing-power parity, which is the simple comparison of the price levels of two countries as expressed in local currency. Nevertheless, the mechanism for devaluing is still the same as that which occurred under gold: inflation of the fiat-money supply. For example, the central bank could give foreign buyers more local currency with which to buy local goods. This increased supply of local currency eventually works its way through the economy, raising all prices. Economists refer to this process as "importing inflation." The devaluation advocates attempt to convince their countrymen that what was once a shameful act is now a positive good. For example, the Swiss are trying to lower the value of their currency in relation to all others.

What of the proposition that taking positive steps to devalue one's own currency against all others, if it can be achieved, will actually help a country become more competitive? What have others said on this subject?

Insights from Immanuel Kant, Frederic Bastiat, and Henry Hazlitt

A policy of currency devaluation can be judged by whether or not it satisfies Immanuel Kant's "categorical imperative," which asks whether the action will benefit all men, at all places, and at all times. Certainly a devaluation will benefit exporters, who can expect to make more sales. Their foreign customers get more local currency in exchange for their own. Exports increase. The exporter's position is one that is best examined by considering Frederic Bastiat's brilliant essay "That Which Is Seen, and That Which Is Not Seen" and "The Lesson" found in Henry Hazlitt's Economics in One Lesson.

At the instance of exchanging his money for more local currency, the foreign buyer will indeed be inclined to purchase more of the goods from the country that devalued. This we can see, and most pundits consider it a good thing. The exporter's increased sales can be measured. This is seen. But what about the importer's lost sales? Importers can expect the opposite. The local currency will buy less, and they can expect sales to fall due to the necessity of raising prices to reflect the reduced purchasing power of their local currency. How can one measure sales that never happened? This is Bastiat's unseen.

And this is merely the beginning.

Hazlitt would tell us to look at the longer-term effects of Bastiat's insight. What is seen is that exporters get first use of the newly created money and buy replacement factors of production at current prices. The increased profits from the higher sales enrich them, because they are the early receivers of the money. But how about those who get the money much later, such as wholesalers, or not at all, such as retirees?

Over time the new money causes all prices to rise, even the exporter's factors of production. The benefits to the exporter of the monetary intervention have slowly evaporated. The costs of his factors of production have risen. His sales start to fall back to preintervention levels. What can he do except lobby the government for another shot of monetary expansion to give his customers even more local currency with which to buy his products?

Monetary Expansion Creates the Boom-Bust Cycle

But even this increase in overall prices and their redistributive effects is not the entire story. The increase in the nation's money supply will cause the boom-bust business cycle. The boom phase has been misinterpreted by the Wolfson Prize finalists, who see historical evidence in the beneficial effects of devaluation. For example, Jonathan Tepper writes that "in August 1998, Russia defaulted on its sovereign debt and devalued its currency. The expected catastrophe didn't happen." Later he writes, "Argentina was forced to default and devalue in late 2001 and early 2002. Despite dire predictions, the economy did extraordinarily well." But these are merely the expected and temporary appearances of the boom phase caused by monetary expansion. Not only does the bankrupt nation shed itself of its debt and get to keep its ill-gotten gains; its expansionist monetary policy touches off a speculative boom. Neither Russia nor Argentina have built sustainable, capitalist economies.

The Exporter as Wealth-Transfer Agent

It should be clear that there is no net benefit to the country that drives down the purchasing power of its currency through monetary expansion. The only reason the exporter makes more sales is that the buyer of the exporter's goods gets a lower price. This lower price was not the result of manufacturing efficiencies, but of a subsidy — a transfer of wealth — from some in the exporting country to the foreign purchaser of the goods. With each successive monetary expansion, wealth is funneled to the exporter, his employees, and others who get the money early in the expansion phase. All others are harmed. In effect, the exporter's sales have been subsidized by his fellow citizens who are the late receivers of the new money. The exporter is the unseen means by which the transfer is effected. The nation as a whole is worse off; it is not more competitive.

Delaying Real Reform in a Fruitless "Race to the Bottom"

Politicians and their professional economist supporters are doing their fellow citizens an injustice by pursuing devaluation as a quick and easy means to improve national competitiveness. The source of real competitive advantage is through liberal reform of economic policies that reward industriousness in a people, protect their property and even that of foreigners from confiscatory taxation, and encourage savings. Over time the country's capital base in relation to its population will increase — an increase in capital per capita, as economists say — raising real prosperity through increased worker productivity. But instead of forthrightly pursuing economic reform, which one must admit will be difficult, politicians and their professional-economist supporters are fomenting a "race to the bottom," by which each country tries to boost exports via competitive devaluations against all others. The nation's capital base will slowly dwindle through the backdoor export subsidy made possible through monetary debasement.

The Moral Hazard of the Welfare State

There is nothing preventing any member of the EMU from becoming more competitive right now. All that is required is a willingness to lower prices. As the common medium of exchange, the euro reveals uncompetitive economic structures. So why do those countries wishing to become more competitive refrain from lowering prices? The answer is the welfare state. In an unhampered market economy, there is no structural unemployment. All who wish to work can do so, because there is never a dearth of work to be done. But the welfare state removes the cost of pricing one's labor or one's goods and services too high. One might say that the welfare state underpins structural rigidities in an economy, such as labor laws, licensing, etc., by removing the cost of market interventions. Devaluation does not address this underlying problem; therefore, devaluation will not cure a country's lack of competitiveness.

http://mises.org/daily/6043/Value-in-Devaluation

 

[koalabear]

Stocks jump on China hopes

Still no hope for the USA.

 

[richard_daily]

Still no hope for the USA.

Move to China then. That's where you keep putting your money into.

 

[koalabear]

I'm moving to China then. If Ken will take me back.

 

[richard_daily]

I think it's cute that you're so proud of yourself. Your child-like intelligence is a wonder to behold.

 

[koalabear]

I think it's cute that you're so proud of yourself. I can't be proud with Ken out of my life.

 

[RobDownSouth]

I really really hope Vetteman gives me a reach-around today!

Wishful thinking.

 

[koalabear]

Wishful thinking.

On your part, maggot.

 

[pierrelarue161]

The Gold Standard again? That wouldn't work.

To quote William Jennings Bryan....

"You shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold."

 

[bra_man69]

The Gold Standard again? That wouldn't work.

To quote William Jennings Bryan....

"You shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold."

Right we well just make up the value of the dollar who gives a shit.

 

[unregistered]

 

[yevkassem72]

Pierre, Pierre, you just don't get it. It's time for a revolution. Full tilt, blood in the streets. Madame Guillotine will straighten things out.

 

[TexasWife25]

http://www.cnbc.com/id/40088925/Roubini_Here_s_Why_a_Gold_Standard_Won_t_Work


"A fixed exchange regime, even if it is not a gold standard… that world just doesn't work. Because in that world, monetary policy by definition instead of being countercyclical becomes procyclical,"

 

[unregistered]