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Steve in Greensboro

Steve in Greensboro
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  • Dow Will Be Closer To 14000 By The End Of 2012 [View article]
    The Dow will certainly be closer to 14k than it is to 15k by year end.
    Jun 25 01:30 PM | 5 Likes Like |Link to Comment
  • Gold Hits New Record High - But Why? [View article]
    "...You certainly can’t blame recent comments from Federal Reserve chairman Ben Bernanke [for the increase in gold prices]".

    Actually, I can. Nobody believes Bernanke. When he says on 60 Minutes that he 1) is not creating money and 2) can instantly draw back the money he has created, then he loses all credibility with anybody except Ruling Class drones and hangers-on like Paul Krugman and Robert Reich.

    You might have a look at Mish's "Fed Uncertainty Principle: The fed, by its very existence, has completely distorted the market via self reinforcing observer/participant feedback loops."

    When Bernanke says there is no inflation and he doesn't expect any, we non-members of the Ruling Class assume he is lying to us, jawboning us to ignore the inflation we see all around us in gasoline prices, food prices, etc. just like he lied to us on 60 Minutes.
    Apr 5 05:59 PM | 22 Likes Like |Link to Comment
  • The End of the World Is Coming (Theirs, Not Ours) [View article]
    Thanks for another great note, David.

    Everybody should defer to Bernard Lewis' expertise on the Middle East. And I think I agree that the pre-modern caliphates were more tolerant of religious and ethnic minorities, despite dhimmitude and the djizjah, etc.

    But I think the relevant comparison is between the modern caliphate (as in Iran) and the modern military dictatorship (everywhere in the modern Arab world). And I don't think there really is much difference between the modern Muslim options in terms of liberty, friendliness to markets, etc.

    And as a new caliphate is established across the Muslim world (a Sunni one in the Arab world in addition to the Shia one in Iran), oil prices will go off the charts due to the disruption of the transition and the anti-capitalist bent of the new caliphates.

    And $200+ real oil prices maybe won't be the end of the world for us, but they will permanently damage Western economies and growth rate resulting in real poverty.
    Mar 2 09:36 AM | 3 Likes Like |Link to Comment
  • Pain Without Purpose [View article]
    Obama told us if we signed on to his massive deficit spending plan in 2009 that unemployment would not exceed 8%. QE1, QE2...QEn reflates bubbles in the stock market and commodities, but doesn't get the economy started. We pass a completely Keynesian, non-supply side tax cut and the economy continues to limp along.

    How many real world experiments with Keynesian economics need to fail before you admit that you are living in a fantasy world?
    Feb 28 09:36 PM | Likes Like |Link to Comment
  • The ruling Fianna Fail party is annihilated, losing about 75% of its seats in the Irish election. PM to be, Enda Kenny calls it a “democratic revolution ... (the voters) wreaked vengeance on those who let them down.” Next stop: bailout renegotiation. An EU bureaucrat warns, "Ireland's only role in this now is to implement the (bailout) ... Irish voters are not a party in this process."  [View news story]
    I love the arrogance of the EU bureaucrat quoted in the Telegraph article. "...Ireland's only role in this now is to implement the (bailout) ... Irish voters are not a party in this process." Resistance (to unelected government bureaucrats) is futile. Kind of like Americans and our bureaucrats.

    But the message to the Irish is clear. If you decline the bailout, no more free German money for your welfare programs. And why would the Irish turn down free German money? The only question is why are the German's funding this boondoggle.

    The Irish aren't the victims; they are the beneficiaries (along with of course the ever-expanding Eurostate).

    The German taxpayers are the victims.
    Feb 27 01:07 PM | 1 Like Like |Link to Comment
  • Thank You, Mr. President [View article]
    We will see a phase out of ethanol subsidies about the same time we phase out subsidies for other "green energy" boondoggles, e.g. solar, wind and other biofuels, namely not until the leviathan U.S. Government runs out of money and must get serious about cutting spending.

    The U.S. Government does not care about food prices globally. It does not care that its monetary policy (implemented via its tool the Federal Reserve) drives up global inflation. It does not care that diverting U.S. farmland from high-value food production to low value energy production causes starvation in the Third World. It does not care that drilling moratoria further reduce global oil supplies.

    This is because it is run by Leftist lawyers who are economically illiterate and whose major policy objective is to transfer power and wealth from the American people and to the U.S. Government.
    Feb 25 05:01 PM | 18 Likes Like |Link to Comment
  • A Massive Gold Rally Is Underway [View article]
    @Mario1: If your time horizon is really 6 months (meaning you need the USD in August), you probably should have the cash in a bank account.

    I am a big fan of gold, but if the oil price spike causes a collapse in the stock market, gold will go down with it. Not so deep and not for so long, but it will go down. Have a look at what happend in September and October 2008.
    Feb 25 04:47 PM | 1 Like Like |Link to Comment
  • The U.S. government, which still owns 33% of General Motors (GM -4.7%), hopes to exit its stake quickly without waiting to maximize returns, Detroit News reports. "The writing is clearly on the wall" that the government wants out, Council of Economic Advisers chairman Austan Goolsbee says. Shares drop through their IPO level after the automaker misses its earnings number.  [View news story]
    Note to Obama voters: You guys need to step up and bid or the president is going to look bad.
    Feb 24 02:50 PM | 6 Likes Like |Link to Comment
  • It's Not the Economy: Why Agency Conflict Is Bringing America Down [View article]
    There is an agency conflict, but it is not between the American people and some sort of banking cabal as you propose.

    The agency conflict is between the U.S. government (nominally servants of the American public) and the American people. The U.S. government (and its allies in the rest of the Ruling Class including government workers, government unions, the mainstream media, TBTF bankers, and Leftists generally) has an ongoing project which is the transfer of power and wealth from the American people to the U.S. government.

    And of course the U.S. Government controls the Federal Reserve.

    Do you think that Bernanke would have been nominated by Obama for a second term if he wasn't doing just exactly what the Ruling Class who control the U.S. Government want him to do?

    Do you think that Bernanke would have been reconfirmed by the Senate in January 2010 by a 70-30 vote if he wasn't doing just exactly what the Ruling Class who controlled the Senate want him to do?

    The Federal Reserve is a de facto unit of the Executive branch of the U.S. government.

    The currency debasement that the Fed has been doing since its establishment in 1913 has been 100% a project of the U.S. Government.

    Of course the U.S. Government controls the Federal Reserve. Only someone willfully bllinded by their politics would think otherwise.
    Feb 23 09:28 AM | 3 Likes Like |Link to Comment
  • The New Natural Rate of Unemployment [View article]
    When you've got a job, the unemployment rate is just another grotesque, Government-manipulated statistic like the inflation rate or the National Debt.

    When you are out of a job, the unemployment rate is a personal tragedy blamable on the same U.S. Government that manipulates the statistics to minimize blame or shift it.

    The current 17% U-6 unemployment rate (reminiscent of the First Great Depression) is only structural in the sense the the U.S. Government dominates the structure of the economy with its absurd and economically destructive tax and regulatory policy.

    Restructure the U.S. Government, layoff Government employees, remove 90% of the regulations, simplify or eliminate income taxation and the structural unemployment rate will go down to 5% or less.
    Feb 15 08:08 AM | 6 Likes Like |Link to Comment
  • The Keynesian Solvency Standoff [View article]
    Of course the U.S. Government controls the Federal Reserve.

    Do you think that Bernanke would have been nominated by Obama for a second term if he wasn't doing just exactly what the Leftists who control the U.S. Government want him to do?

    Do you think that Bernanke would have been reconfirmed by the Democrat-controlled Senate in January 2010 by a 70-30 vote if he wasn't doing just exactly what the Leftists who controlled the Senate want him to do? (Dems voted 47-12 for Bernanke.)

    The Federal Reserve is a de facto unit of the Executive branch of the U.S. government.

    The currency debasement that the Fed has been doing since its establishment in 1913 has been 100% a project of the U.S. Government.

    Of course the U.S. Government controls the Federal Reserve. Only someone willfully bllinded by their politics would think otherwise.
    Feb 10 05:31 AM | 4 Likes Like |Link to Comment
  • Jim Rickards on Inflation and Currency Wars [View article]
    "...The bad assets haven’t gone anywhere....what’s important to understand is that the bad loans haven’t gone anywhere. It’s not as if they’ve been magically transformed into good loans, it’s not as if they’ve been marked down, it’s not as if they’ve moved from weak hands to strong hands. What’s happened is, they’ve basically been locked in amber, frozen on the balance sheets of the banks..."

    Amen.

    Bullying the FASB to soften mark-to-market, did not magically turn bad loans into good ones. It was like telling your oncologist to ignore that spot on your lung. Ignoring it doesn't make it go away.
    Feb 7 03:40 PM | Likes Like |Link to Comment
  • Ludwig Von Mises and the Crack Up Boom [View article]
    The Austrian school is what economists call "economics".

    Keynesianism, monetarism, etc. are not economic theories, but simply academic rationalizations for government intervention on behalf of Big Government and their clients, including big banks.
    Feb 7 02:21 PM | 12 Likes Like |Link to Comment
  • Tyler Cowen's 'The Great Stagnation' Raises Important Questions [View article]
    "...Second, don’t demonize those you disagree with. The point Tyler is making that politics becomes a lot harder in a slow-growth economy, where expectations have to be ratcheted down. The center has a real purpose..."

    "The center" are the people who elected the socialist, Obama. "The center" are the reason we have the unconstitutional Obamacare. "The center" are people who decide on who to vote for based on the quality of the candidate's hair or the color of his skin.

    "The center" are people who want to split the difference between policies which are economically sane and those which are economically insane.

    Damn the center.

    Better to have a completely polarized legislative branch than one in which the two parties "get things done", because "getting things done" usually means a forever expanding State.
    Feb 3 09:28 AM | 5 Likes Like |Link to Comment
  • Cleantech Businesses May Be Fundamentally Unsuitable for VC Investment [View article]
    @Hazel: Yes, let's "level the playing field" by removing the government imposed, economically irrational obstacles to development in fossil fuels and nuclear energy and by removing the subsidies to wind, solar, etc.

    Then we'll see real progress in energy, i.e. development of real energy sources in an economically efficient way.
    Jan 10 03:19 AM | 1 Like Like |Link to Comment
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