Jan Rogozinski

The Money Supply and the Stock Market

The world is more complicate that you seem to think.

It's true that increasing money supply has led to bubbles. But note that the last stock market bubble was in 2001 with tech stocks. The next time Greenspan flooded the money supply, folks flipped houses, instead of stocks.

Secondly, one only gets these kinds of bubbles when one has an extremely unequal society, as we do in the US. At present the top 1% own most of the country. And the bottle 40% are scrapping to buy food. At the same time, the rich in the USA pay very low taxes because the tax rates are extremely regressive. [Hint. I'm talking about all the taxes folk pay, including FICA, sales taxes, property taxes, taxes on electricity usage, water usage, telephone usage, etc., etc. There is no one in the USA who does not pay taxes, Adan the poor pay a higher percentage of their income than the rich.]

Thus when the money supply grows, the money goes only to the top 5% who already have bought everything they want. When one is being paid 500 million a year and one already has seven homes and three yachts and 12 automobiles, there is nothing to spend the money on. So it goes into bubbles.

Because of our inequality the USA is a country of bubbles, blown by the very rich. But remember the stock market is not the only thing the very rich can bubble. Who knows? The next bubble may be in "art" again or even rare comic books.

The Chickens of Irresponsibility Come Home to Roost Under Obama's Reign

It's the enormous pink spot tend elephant in the room that no one notices because every eon is blind.

The trillion dollars or more that the US spends every year to maintain its military empire, with 700 bases in 110 countries (or something like that) and 18 separate spy agencies.

Whiteout even counting the spy agencies (some of which have secret, hidden budgets, the US already spends much more on the military than all the other countries in the world (including Russia and China) combined.

This has been going on since Kennedy got the US into the Vietnam War. So that's 48 years! With spending on the empire accelerating every year since Reagan.

The Republicans keep saying, "we believe in small government," while constantly increasing military spending and thus constantly swelling the size of the government. And Obama is going to be just as bad-- except that he isn't a hypocrite like the Republicans. I've read that he wants to add another 100,000 soldiers to the existing number.

Spending money on the military is like piling up 100 dollar bills and setting them on fire. Military spending is useless and contributes nothing to our welfare. The stuff we buy either is stored up until it rusts, or it is used and thus destroyed in the case of bombs, or consumed the case of ammunition.

But it gets even worse when all the trillions of dollars spent on the empire since Reagan in 1980 has been borrowed. Thus increasing interest payments very year.

Imagine where we would be if all the unneeded military spending over that last 50 years had been used to build infrastructure here at home. Or alternatively used to cut taxes by 50% while paying off the national debt.

John Hussman: Depression Fear Mongering 'Ridiculous'

No "Pent-up Demand", Roosevelt solemny promised the voters to keep the US out of all "foreign wars." Of course he was lying. What he actually meant was that he was going to enter WWII, and once the US was in, the war would no longer bye 'foreign."