Category: economics

economics

The “stimulus” is far too large and far too small.

Republicans are getting traction by condemning the “stimulus”, as an outlandishly extravagant porkfest, as miserly and inadequate, and as a disaster that should not be repeated – an attack made all the more effective by the many radical Democrats who complain the porkfest was inadequate, and call for a bigger and better porkfest: “Stimulus II” Obama’s approval ratings, though still high, are plummeting fast under this withering criticism. In Japan, they are now on stimulus umpteen, the Japanese economy is …

economics

Constitutionality of the removal of the Presidente of Honduras

Because the president of Honduras proposed to change the constitution to allow him further terms of office, he was accused of violating article 239 of the Honduran Constitution: No citizen who has already served as head of the Executive Branch can be President or Vice-President. Whoever violates this law or proposes its reform, as well as those that support such violation directly or indirectly, will immediately cease in their functions and will be unable to hold any public office for …

economics

The universal government white paper:

In short, the white paper tells us: Politicians are of course entirely lily white and innocent, except that the other party allowed bad people in the private sector to do bad things. Some regulatory agencies failed to do enough. Solving the problem requires more power to the government. Those regulatory agencies that failed the worst, will get the largest increase in money and power.

economics

Inflation looms

The bond market does not tell us what the smart money people think inflation will be. It tells us what those among the smart money people who do not expect very high levels of inflation think inflation will be.

In addition to an on budget deficit of ten percent or so, there is also a much larger off budget deficit, in the form of an ever growing pile of government guarantees, which there is no will to restrain. Put the two deficits together, crisis looms.

Trees do not grow to the sky. That which cannot continue, must stop

economics

Internet Gold alive and well

Like Napster they demonstrated that the business model was viable, and also demonstrated that as soon as you started transferring serious money the US government would come after you. As a result, there are a lot of replacements for e-gold, which the US government will find hard to shut down

economics

obamanomics

Megan nails it: the government is using its intervention in the banking system to pressure banks to give special deals to the government’s special friends.

economics

Securitization

From the point of view of oligarchs and crony capitalists, the crisis is not that a lot loans were made to no hablo English wetbacks. The crisis is that people are rejecting securitization of debt. The Obama regime’s capitalism smashing measures are intended not to destroy capitalism, nor to install socialism, but to restore securitization of debt. This is socialism for the financiers, not for the proles:  Crony socialism, crony capitalism, a fascist economic order. Regular old fashioned loans are …