Posts Tagged ‘economy’
Last week at its regular policy-setting meeting, the Federal Reserve announced it would double down on the policies that have failed to produce anything but a stagnant economy. It was a disappointing, but not surprising, move.
The Fed affirmed that it is prepared to increase its monthly purchases of Treasuries and mortgage-backed securities if things don’t start looking up. But actually the Fed has already been buying more than the announced $85 billion per month. Between February and March, the Fed’s securities holdings increased $95 billion. From March to April, they increased $100 billion. In all, the Fed has pumped more than a half trillion dollars into the economy since announcing its latest round of “quantitative easing” (QE3) in September 2012.
–SNIP– It is not surprising the Fed has decided to hand the American people more of the same failed policies. But it is disappointing. We know what the real solution is: allow the marketplace to work. Allow entrepreneurs the chance to create instead of stifling innovation with arbitrary regulations. Allow interest rates to rise to equal the risks in the economy. Allow bad debts to be liquidated so we can build on a firm foundation. Stop printing money to benefit the government and big banks. Restore sound money to the economy and the American people. Sound money is the bedrock for prosperity and the best check on big government and crony capitalism.
Read more by Ron Paul at the-free-foundation.org
For the American middle class, wage stagnation has been a fact of life for over two decades. Last year, the median household earned just over $50,000—no more, adjusted for inflation, than the median household in 1996 or 1989. That’s in stark contrast to the fortunes of the richest one percent, who saw their annual income rise 50 percent in the same period, from about $592,000 to nearly $879,000.
At the same time, the total compensation received by workers has actually increased over 30 percent since 1980—a statistic frequently cited by conservative economists as proof that income inequality is somehow exaggerated. But the fact is, most middle class families haven’t seen a dollar of that extra compensation. It’s consumed before it ever reaches them by the ever-rising cost of health care—the silent killer of middle class wage growth.
Read more by Benjamin Landy at RealClearPolicy.com
For a long time, gold standard advocates in the United States have had differing viewpoints about whether a new gold standard system might take place with existing institutions, such as the Federal Reserve, or whether it would take place with new institutions, and the Federal Reserve would in effect be disbanded or rendered irrelevant.
Read more by Nathan Lewis at Forbes.com
A small, thriving minority now dominates the national conversation, even as more and more Americans struggle to get by, writes Stuart Stevens.
Today, 21 and a half million Americans are unemployed or underemployed—about twice as many as six years ago, according to NPR. Work-force participation, a fancy term for the number of Americans either working or looking for work, has dropped to “the lowest level since the malaise of the late 1970’s,” an era when far fewer women were working, according to MSNBC.
Yes, the unemployment rate dropped last month—but only because so many people simply gave up looking for work. The dirty little secret is that after only four weeks of not looking for a job, an unemployed worker stops being counted. So far as the jobless numbers are concerned, that person ceases to exist. But, of course, they do exist and continue to be counted in other, troubling statistics:
Read more by Stuart Stevens at TheDailyBeast.com
De Facto ‘Debtors’ Prison’ Freezes Economic Mobility, Favors Plutocrats In Eroding U.S. Legal System
Drawing a direct line — or any line at all — that links criminal guilt with incarceration is becoming impossible in a growing number of cities and States, as people are being put indefinitely in jail for their inability to pay medical bills, traffic fines and court costs.
Increasingly, private debt collection has come to put pressure on law enforcement to aggressively pursue available legal opportunities to arrest those who don’t pay their bills — such as when a civil judgment has been issued against an already-delinquent borrower and that person subsequently is found to be in contempt of the judgment because he still can’t pay.
Read more by Ben Bullard at PersonalLiberty.com
--SNIP-- Imagine if a Republican like Bush were President, would the media quote the 7.7 percent rate but ignore the underlying numbers of 13.8 percent unemployment among black Americans or 25.1 percent among teens?
Imagine if a white Republican President were presiding over 13.8 percent black unemployment versus 6.8 percent white unemployment, what would Al Sharpton, Jesse Jackson, (U.S. Senator) Barack Obama and other black leaders be screaming? Would they be leading a “million man march” on Washington, D.C.? Of course they would. Would black leaders blame this all on racism and in particular a racist white Republican President? Of course they would. Would they blame it all on conservative economic policies? Of course they would. Yet with a black President following big-tax, big-spend, big-entitlement, big-government policies, we hear not a word of anger or blame — and, of course, no mention of racism.
Read more at PersonalLiberty.com
1. Rights belong to individuals, not groups; they derive from our nature and can neither be granted nor taken away by government.
2. All peaceful, voluntary economic and social associations are permitted; consent is the basis of the social and economic order.
3. Justly acquired property is privately owned by individuals and voluntary groups, and this ownership cannot be arbitrarily voided by governments.
4. Government may not redistribute private wealth or grant special privileges to any individual or group.
5. Individuals are responsible for their own actions; government cannot and should not protect us from ourselves.
Read more by Ron Paul at LewRockwell.com
The sad truth in the USA, as we explained in great detail here, incentives to ‘work’ are increasingly non-existent. Thanks to a never-ending stream of benefits from the great and powerful Oz, as CNBC’s Rick Santelli notes, Disability payments (of which there are 14 million people covered in the US - none of which count towards the unemployment rate) pay around $13,000 per year (versus $15,000 for minimum wage work). However, Santelli exclaims, the people on disability get healthcare; and this program costs the US $300 billion per year. Is it any wonder that only 1% of those who were on disability in Q1 2011 have left? Santelli comments, “I’m not saying there aren’t people that are on disability that shouldn’t be, but much of it is illnesses like back pain… it’s a judgment call,” adding that, “without incentives, large issues go …totally unfixed.”
Always ask The Magic Question: What gets rewarded?
Democrats hope to retake the House of Representatives in next year’s elections. They won’t — and they’ll have themselves to blame, because 2014 is when ObamaCare kicks in.
With a vengeance.
The authors of the Obama health law postponed the pain until after the 2012 election. Some popular provisions went into effect immediately, such as allowing children to stay on their parent’s plan until age 26. And the White House granted 1,472 waivers to various companies and unions, exempting them from insurance reforms so they wouldn’t drop coverage for employees and members before the presidential contest.
Yet a majority of voters on Election Day still opposed the health law (though, obviously, it wasn’t the deciding issue in the presidential race). And opinion will only sour more as the law takes full force starting in January.
Read more by BETSY MCCAUGHEY at NYPost.com
Because the mainstream media lobbied every bit as hard as Obama to win passage of ObamaCare, they are every bit as invested in doing whatever is necessary to see that it is perceived as a success. Unfortunately for Americans who expect truth from their media, this means the media are having to manufacture a false reality that says ObamaCare is, to steal a phrase, “doing fine.”
In order to manufacture this phony reality, the media must further sell their blackened soul by violating one of their most cherished principals: reporting on how government policy hits America’s weakest the hardest. It’s just a fact that the worst fallout of ObamaCare is already landing hard on the working class, who are losing work hours, jobs, and their insurance.
Read more by John Nolte at Breitbart.com
Is there a single doubt left in your mind?
Are you still a believer in
Rufus T. Firefly Jamie Dimon as the world’s smartest banker?
Is there a scintilla of wonder left in your mind that the giant banks are legitimate?
Have you come around to understanding — finally — what some of us have long understood about banks?
Are you willing to accept the truth about these corporate behemoths — that they are a horrific combination of economically dangerous, criminally inept, led by pathologically lying CEOs?
Do you harbor any doubts that the giant banks are anything less than ruthlessly efficient criminal enterprises?
Can you — finally — admit that our bank-created financial crisis of 2008-09 has led us to where we are today?
Read more by Barry Ritholtz at The Big Picture
Now that the dust has settled and the seemingly endless campaigns are behind us, we have come a long way in the last two years and can finally sit and look at the accomplishments that Governor Walker has put in place to move Wisconsin forward.
When he came into office, he inherited a $3.6 billion budget deficit and under the previous democrat control of the state legislature spending was out of control and no end was in sight.
Governor Walker stepped right into the muck and the mire and with his sleeves rolled up; he made immediate and difficult changes that have put us back on a track toward prosperity.
Read more by Bill Folk at Caledonia Patch
On television, in interviews and in meetings with investors, executives of the biggest U.S. banks — notably JPMorgan Chase & Co. Chief Executive Jamie Dimon — make the case that size is a competitive advantage. It helps them lower costs and vie for customers on an international scale. Limiting it, they warn, would impair profitability and weaken the country’s position in global finance.
So what if we told you that, by our calculations, the largest U.S. banks aren’t really profitable at all? What if the billions of dollars they allegedly earn for their shareholders were almost entirely a gift from U.S. taxpayers?
Granted, it’s a hard concept to swallow. It’s also crucial to understanding why the big banks present such a threat to the global economy.
Read more at Bloomberg.com
The world’s markets are beginning to go haywire.
The world’s money system – the scales upon which the world’s market functions – is being deliberately destroyed. And so, the monetary signals that guide the markets – which are supposed to represent the supply and demand decisions of billions of people – have become distorted.
–SNIP– The distortions in the markets are the result of the deliberate manipulation of currency values around the world by central bankers. The central bankers are responding to their political masters’ demands for easier money and cheaper credit. There is now, around the world, a widespread belief that the symbol of wealth (paper money) alone can deliver all the benefits of the market.
This is the great lie. It is the final modern delusion.
Read more by Porter Stansberry at DailyWealth.com