Jubilee Year

Public Pensions: Rotting from Within

Brilliant suggestions. Don't forget the role of government worker unions. Would you agree they should not be allowed?

The good news is, just about every single level of government in the nation is now facing around 25% cutbacks due to loss of tax revenue this year. The fat will be cut out pretty quick, at least some of it.

U.S. Records Huge Trade Deficit

The trade imbalance is not a product of the free market, it is a product of foreign government policy, hoarding dollars to keep their currency low, to their own economic advantage. Why should we cooperate with their predatory policy? Decreasing US wages in the face of foreign attacks on our economy is hardly a legitimate public policy.

Thank you, Mr. Morici, for spelling out the negative consequences of the corrent global economic system, which are uniformly glossed over by the powers-that-be who are currently establishing trade policy.

Obama's Public Spending Program: A Very Expensive Farce

Great article. Most people think we are getting something for nothing in the stimulus, like presents from Santa. In fact, it will distrupt the labor and finance markets and subsidize unproductive industries, making us all poorer, as good money is forced to chase bad. Not to mention the extra debt.

Why Banks Want the Old Bailout Back

Your arguments read like a series of fallacies and fantasies:
-the debt problem of buying toxic assets is not a serious problem if the economy starts growing again. [Yeah, that is a mighty important “if” there, isn’t it?]
--hyperinflation is a not threat because hyperinflation occurs when there is more aggregate spending than aggregate output, which you cannot foresee [And worldwide gov’t quantitative easing in worldwide economic contraction is what, exactly?]
-- Protecting banks from further losses is important because if banks have the uncertain loss overhanging, they will not lend [Banks won’t lend because of the certainty of deflation, making all loans guaranteed losers. Buying their bad assets won’t stop the deflation.]
-Depression is avoidable, because we have had fewer and shallower recessions over time because the quality of monetary policy has improved over the years [Hmmm, where have I heard this: “Past performance is no guarantee of future results”? And what about the role of that monetary policy in creating this problem, fashioned by the very people still in charge?]
--We need circuit-breakers in the system. If a circuit breaker could prevent a house from being engulfed in flames, why do we keep saying that the fire is inevitable. [Agreed, but a little late for short circuits when the house is already on fire, isn’t it? The short circuits were there, but were removed years ago.]

Jerry Maguire, Mission Statements and the Great Housing Malaise

So we have an oversupply problem, which will only get worse as more people are laid off. And we already have, what, 12 months of inventory still on the market? And we are already at 2004 prices, with 20-25% of all homes being upside down right now, with the market still declining.

So, is this even reversable? How exactly does this process end? Is there any way to avoid what you foresee: a mass banking insolvency?

ECRI: Worldwide Inflation Plunge Still Continues

If I interpret this correctly, the coming deflation will suck up all bailout and stimulus funds. How much Quantitative Easing would they have to do to reverse the trend? Is it even effective at all? Or is it just good money being throw after bad?

Is the U.S. Solvent?

Sorry, alajac, the US government could not conquer everything. Your premises are flawed.

Things We Don't Talk About (But Should): National Debt and $2 Trillion Deficits

The solution to all of our problems is quite simple, but quite "outside the box": we need to cancel our debt. All of it. With no debt load, price levels could harmlessly deflate, and our productive economy would get a stimulus like no other.