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  • Just 17% of Americans agree with the Pope's call for more international regulation of the U.S. economy, while 59% believe international organizations like the UN should have less influence on U.S. economic policy, not more. Only 8% think it's very likely the G-8 will advance a 'significant plan' to help the global economy. (Rasmussen)  [View news story]
    "No. The US government is responsible for the benefit of Americans, not Europeans, not Chinese, not anyone else. If they do anything that benefits other countries at the cost of or to Americans they are traitors and not upholding their oath of office. "

    This is the type of thinking that lead to protectionist economic policies like tariffs. And its funny because Republicans, the people who claim that they are for "free markets", are the most are the ones that are most likely to make these kind of statements.
    Jul 9, 2009. 02:29 PM | Likes Like |Link to Comment
  • Just 17% of Americans agree with the Pope's call for more international regulation of the U.S. economy, while 59% believe international organizations like the UN should have less influence on U.S. economic policy, not more. Only 8% think it's very likely the G-8 will advance a 'significant plan' to help the global economy. (Rasmussen)  [View news story]
    First of all, Rasmussen is a right wing pollster whose results are continuous outliers always in the GOP direction. Second of all, I can rephrase all 3 of those questions and get higher than 50% YES answers. Here we go:

    1.) Do you believe there should be more cooperation between countries in regulating transnational institutions such as major banks?

    2.) (The second question is weird and misleading and asks for people to draw false conclusions, no one is saying the UN should guide US economic policy)

    3.) Should the United States coordinate fiscal stimulus programs with other nations to achieve a maximum effect on overall demand as many economists recommend?
    Jul 9, 2009. 12:56 PM | 1 Like Like |Link to Comment
  • This chart gives a good idea of just how record-breaking the current recession is in terms of continuing unemployment claims.  [View news story]
    This is ridicilous. Can you at least provide this chart as a percentage of the overall population. The labor pool right now is much larger than it was in the 70s.
    Jul 9, 2009. 10:14 AM | 1 Like Like |Link to Comment
  • Economist Robert Frank discovers a Ph.D-powered economic perpetual motion machine. Mark Steyn explains: "The stimulus will work because enough economists are saying it will work that their prestigious postnominal credentials will impress enough of the masses into thinking it will work, which in turn will make it work." (via)  [View news story]
    OK, I take some of that last comment back. There are a few economists (Tyler Cowen) who make decent arguments against the stimulus. But their argument is not that the stimulus won't work, its that it will work but as soon as we stop the stimulus the economy will fall again. That is at least a decent argument to have.
    Jul 8, 2009. 01:49 PM | 2 Likes Like |Link to Comment
  • Economist Robert Frank discovers a Ph.D-powered economic perpetual motion machine. Mark Steyn explains: "The stimulus will work because enough economists are saying it will work that their prestigious postnominal credentials will impress enough of the masses into thinking it will work, which in turn will make it work." (via)  [View news story]
    This is how the usual argument between stimulus supporters and stimulus skeptics goes like.

    Stimulus skeptics throw out a bunch of arguments that are half-truths or fallacies.

    Stimulus supporters refute all of them.

    Stimulus skeptics stop with the logic and begin throwing out ideological proclamations about socialism or communism, insults and sarcastic humor. Stimulus supporters fire back with more facts and evidence but sadly they don't realize that the stimulus skeptics don't care anymore about facts and evidence.
    Jul 8, 2009. 01:45 PM | 5 Likes Like |Link to Comment
  • Following a speech at Peking University, Tim Geithner was asked to share his thoughts about the safety of Chinese investments in the United States. They are "VERY safe," he said. At which point the audience burst out laughing.  [View news story]
    Except, ummm...they are safe. In fact, where do people flock to when they are scared...US Treasuries and the dollar.

    Whether you like it or not (and I know a lot of people on this website don't like it) the dollar remains the world's reserve currency.

    I find China's calls for a new world reserve currency ridicilous. All they had to do was not buy US Treasuries like they did the past 10 years (artificially holding down our rates and causing this crisis) and their renmibi could have appreciated in value and perhaps become a rival to the dollar. Instead they decided to finance US debt with their savings and artificially hold down the value of the renmibi so they could keep their export industries humming along.

    They are in a dollar trap. They can't get out of the dollar because they are so invested in it, so all they have left is making empty threats about creating a new global reserve currency. This is like Bill Gates saying, perhaps I should diversify my portfolio out of MSFT.
    Jul 8, 2009. 11:57 AM | Likes Like |Link to Comment
  • A second stimulus could do more harm than good, the global head of forex strategy at BNP Paribas says, noting it would have to be financed by increasing the already ballooning public debt. Much more here from Economic Disconnect, including a killer quote from Ludwig von Mises. (earlier)  [View news story]
    Here is the thing gberg. When will the facts and evidence catch up with your and the rest of the Austrian's theory?

    There are two possible scenarios. The stimulus doesn't work and nothing happens to the dollar, there will be no inflation (but in fact deflation) and rates will stay low. This will be something similar to Japan.

    Scenario #2 is the stimulus works. Growth resumes. Unemployment falls. And yes, we get inflation and higher rates and falling dollar. But we want a falling dollar because right now the dollar represents fear. People holding dollars are people who are afraid to invest. We want people to exit the dollar and enter any commodity class with a higher risk profile be it equities, bonds or commodities.

    Look at the daily movements of the dollar and interest rates. If the dollar and interest rates were actually influenced by the public debt, then any day with bad economic news should mean a down day for the dollar. Because a down day for the economy, means less tax revenue, higher deficits and more debt. And by your own admission this should mean, higher rates and lower dollar.

    But what actually happens. A down day for the economy usually means an up day for the dollar and a down day for rates. This is completely contradictory to what you and the rest of the Austrians believe and yet thats the facts mam.
    Jul 7, 2009. 10:35 PM | Likes Like |Link to Comment
  • The silver lining behind rising jobless numbers: "If politicians and establishment economists would simply leave the economy alone, today's painful stories of failure and unemployment would morph into tomorrow's stories of economic rebirth."  [View news story]

    It is not the high cost of employment that is keeping companies from hiring people. Its the fact that there is no demand. The same is true about tax cuts. It is not the high taxes that is keeping companies from expanding and investing, it is because there is no demand.

    Supply side economists take demand for granted, but in recessions it is demand that is most precious. Hence a big fiscal spending stimulus is needed.
    Jul 7, 2009. 06:45 PM | 8 Likes Like |Link to Comment
  • Former Treasury economist Bruce Bartlett speaks out against calls for a second stimulus: "Another stimulus would be a grave mistake... People should not allow their impatience to lead to the adoption of policies that will not only fail to reduce unemployment this year, but could stoke inflation in the not-too-distant future."  [View news story]
    This is really sad. We have rising unemployment, job losses of 400k monthly, demand dropping (just because its dropping at a slower rate doesn't mean that its not dropping) and yet we still have economists who are talking about the possibility of inflation.

    By all evidence, we are in the most DEflationary environment in 60 years and yet we are still talking about inflation. Paul Krugman is right. We really do live in the dark age of economics. Where people believe that printing money automatically leads to inflation. It would actually be nice if monetary policy was that easy.

    Look at Japan. 10 years of 0% monetary policy, quantitative easing, stimulus after stimulus, debt rising to 160% of GDP. Whats the result? DEFLATION! What is the effect on the yen? It is still one of the world's strongest currencies. The reason? Any rise in debt by the government is more than made up for by the rise of savings by the private sector.
    Jul 6, 2009. 02:21 PM | Likes Like |Link to Comment
  • With today's payroll data seeming to wilt green shoot optimism, and with Obama already hinting at the possibility, how long before the push for Stimulus 2.0?  [View news story]
    Why would need a second stimulus if we haven't even spent all of the money in the first yet?

    In fact, this is rather absurd, but it seems they are having trouble spending this money as evidenced by the fact that government payroll FELL 50k. This is ridicilous. The whole point of the stimulus is for government to hire people not to cut payroll.
    Jul 2, 2009. 09:51 AM | 1 Like Like |Link to Comment
  • House passes climate bill 219-212. Crossing party lines: 44 Democrats, 8 Republicans. The CBO puts the average monthly cost per household just under $15 in 2020 (at full phase-in); Nate Silver finds the average American is willing to pay $19/month. AP's Q&A about the bill. (Previously: I, II)  [View news story]
    How did SeekingAlpha become dominated by right wing loons??

    Now for some actual thought.

    First of all, this bill will cost $15/month per household in 2020. What does this mean? That means at least in the immediate future noone will see any effect from this......AT ALL! I know actually reading the bill is too much to ask from right wing unhinged nuts, but the bill essentialy gives away carbon credits to utilities. Meaning NOONE WILL SEE A SINGLE DOLLAR INCREASE IN THEIR BILLS!! From a liberal perspective, this is actually a bad thing. I would have liked to see them auction off the credits because that would have put even more of an incentive for utilities to cut emmissions. But whatever, I see the political purpose of it. So, no noone will be hurt by this at all. Especially, when people see this has had no effect on their utilities bill once so ever.

    Second of all, that $15/month assumes no innovation and green technology as it is right now. This is a false assumption and more likely than not more breakthroughs will be made in the future because of the incentives granted to green technology.

    Third of all, there is just that little problem of umm..GLOBAL WARMING and all the negative externalizations that come from that. I think all of the people in this thread should be forced to live in a house of asbestos and lead. Because those are cheaper building materials and if it wasn't for those damn hippie scientists we could still have houses made from that material and it would be cheaper and the mandate to not use it obviously destroyed our economy. And if we don't listen to scientists about global warming then we shouldn't listen to them about cancer either.

    Finally, I just wanna ask all the right wing nuts. Do you care about facts? Analysis? Results? Accountability? If this bill passes and noone's utilities bill will go up, will you admit you were wrong? Or will you probably not even care because results and facts don't matter to you and the only thing that does is ideological blather spewing from your mouths and keyboards.

    PS: To those concerned that this will help other economies at the expense of the US, you are an idiot who still believes in that stupid decoupling theory. For the 1,000th time, developing markets depend on the consumption from developed markets. China doesn't want its people getting rich because then their most important competitive advantage is gone: (and its not low taxes and regulation, its CHEAP LABOR). We fret that our policies will lead to a falling dollar, China understands that that's not such a bad thing because it holds down the value of its currency ON PURPOSE! Because they understand that devaluing is not always a bad thing.

    P.P.S. It would also be justifiable to place tariffs on Chinese goods since their economy again is completely dependent on exports. This would pressure them to enact climate legislation of their own.
    Jun 27, 2009. 12:20 AM | 3 Likes Like |Link to Comment
  • 20 years of hell for the U.S. economy: Art Laffer thinks we're screwed (video, 6 min.).  [View news story]
    When was the last time Art Laffer was right about anything? Whether it was the ridicilous idea that you can balance the budget but just cutting taxes or that defecits didn't matter or all of the stupid supply-side BS or his proclamation just 2 years ago that US economic policy was PERFECT.

    If anything, his proclamation makes me more bullish than ever about the economy.
    Jun 25, 2009. 06:52 PM | 9 Likes Like |Link to Comment
  • Three-quarters of Americans support government regulation of greenhouse gases, and 62% feel that way even if it means higher taxes. A vote on cap-and-trade, which would have the government issue tradeable permits limiting the amount of greenhouse gases companies could emit, could come as early as tomorrow.  [View news story]
    Actually no, the only brainwashed people are in this thread.

    Stop listening to Rush Limbaugh. Start listening to scientists.

    Religious blather bad. Ann Coulter's pronouncements that people are here to "rape the Earth" bad.

    I think all people who are against capping greenhouse emissions should be forced to live in a house made of asbestos and lead. Both were once thought to be cheap building materials that were perfectly safe to use and had no negative effects. Until the stupid hippie scientists proclaimed that they cause cancer. Well, if we don't care what they say on global warming, then why should we care about what they say about cancer.
    Jun 25, 2009. 09:45 AM | 3 Likes Like |Link to Comment
  • Someday this rally's gonna end (if it hasn't already), and then what? FT Alphaville asks strategists and finds: Look to Asia and to gold.  [View news story]
    Ah, yes. The decoupling theory tries for another comeback.

    Here is a little equation to explain the world right now..

    (US economy) (Asian economy) (World economy) (Gold) (All other commodities) = 1 / (US Dollar * Interest Rates)

    This means that everything is directly correlated to each other. The only 2 things that are indirectly correlated to the world economy is the US dollar an interest rates. The US dollar going up is a BAD sign because the Fed WANTS to inflate all this a way. Interest rates going up is actually a GOOD thing because it means people are leaving treasuries for riskier assets.
    Jun 22, 2009. 06:32 PM | 1 Like Like |Link to Comment
  • Book Review: 'The Birth of Plenty' Is a True Economic History of the World [View article]
    LOL! Do you know that there are parties called Social Democrats? Meaning that democracy and socialism are not mutually exclusive. You can vote for your leaders and they can institute socialist policies.

    Sigh...the stupidity of right wing America in a nutshell.

    On Jun 20 01:11 AM Missing_Link wrote:

    > > The path runs from institutional development to prosperity to
    Jun 20, 2009. 09:49 AM | 5 Likes Like |Link to Comment