Posts Tagged ‘economy’
The Path to Prosperity (Episode 1): America’s two futures, visualized
The Path to Prosperity (Episode 2): Saving Medicare, Visualized
Path to Prosperity (Episode 3): 3 Steps to Pro-Growth Tax Reform — VISUALIZED
You want to fix this economic crisis? You want to put people back to work? You want to light a fire under the economy?
There’s a way to do it. Fast. And relatively simple.
But you’re not going to like it. You’re not going to like it at all.
Default. A national Chapter 11 bankruptcy.
The fastest way to fix this mess is to see tens of millions of homeowners default on their mortgages and other debts, and millions more file for bankruptcy.
I told you that you wouldn’t like it.
I don’t like it much either. It sticks in the craw that people got to borrow all that money and won’t have to pay it back.
But you know what? The time to stop that was five or 10 years ago, when the money was being lent.
And mass Chapter 11 is, by far, the least obnoxious solution to our problems.
Read more by Brett Arends at MarketWatch
Even after seven years of writing macroeconomic analysis for the liberty movement and bearing witness to astonishing displays of financial and political stupidity by more “skeptics” than I can count, it never ceases to amaze me the amount of blind faith average Americans place in the strength of the U.S. dollar. One could explain in vast categorical detail the history of fiat currencies, the inevitable destruction caused by inflationary printing and the conundrum caused when any country decides to monetize its own debt just to stay afloat — often, to no avail.
Bank bailouts, mortgage company bailouts, Treasury bond bailouts, stock market bailouts, bailouts of foreign institutions: None of this seems to phase the gibbering bobbleheaded followers of the Federal Reserve cult. Logic and reason and wisdom bounce like whiffle balls off their thick skulls. They simply parrot one of two painfully predictable arguments:
Read more by Brandon Smith at PersonalLiberty.com
Lt. Gov. Rebecca Kleefisch walks into a local coffee shop without a fuss.
There’s no entourage, not even a press aide, as she orders a cup of coffee, sits down with a reporter and reflects on her life and her career.
Four years ago, Kleefisch was a stay-at-home mom who completed business assignments while her daughters napped. Her political vision was focused tightly on her husband’s career as a Republican member of the state Assembly.
Now, she constantly tours the state as Gov. Scott Walker’s surrogate on small business and workforce development as she talks up jobs and the economy.
Read more by Bill Glauber at JSOnline.com
The dividing line in the national debate over the future of public-sector unions can be found between the Land of Lincoln and its neighbor to the north.
The story of Illinois and Wisconsin is a tale of two very different states.
Wisconsin, led by Gov. Scott Walker and majority Republicans, took on public-sector unions and won in the pursuit of balancing a $3.6 billion state budget shortfall in 2011.
Illinois, led by Democrats with a veto-proof supermajority in the Legislature and Democrat Pat Quinn in the governor’s mansion (at least occasionally), have long coddled the public unions to which they and their campaign war chests are beholden. Consequently, the state faces billions of dollars in unpaid bills and unfunded pension liabilities for current public employees of about $130 billion.
Wisconsin’s economic prospects have vastly improved. . . .
Read more by Benjamin Yount and M.D. Kittle at Watchdog.org
by Rick Barrett of the Journal Sentinel, Sept. 27, 2011
Rules hurt Harley in China
Company works to ease difficult regulations
Harley-Davidson Inc. is lobbying the Chinese government to ease regulations in the world’s most populous country that make it difficult to own and ride a motorcycle.
The goal is to increase sales in China by as much as 40% a year through 2016, Sean Jiang, a Harley representative in China, told Bloomberg News in Beijing.
The Milwaukee motorcycle manufacturer is quadrupling its number of dealerships and is supporting riding clubs to capitalize on a Chinese luxury-vehicle market that JD Power & Associates says will grow by about 35% this year.
But any investment in China without addressing restrictive regulations will be a “castle built on sand,” said Jiang, who is based in Shanghai.
–SNIP– Harleys cost more in China because of import duties that can add 30% to the sticker price before other taxes are figured in.
If black people can forgive President Bill Clinton and the Democrats for shrinking the black middle class, why can’t blacks forgive Reagan/Bush for the longest period of economic growth of the black middle class in the history of America?
During his radio monologue, Dr. Yuille, host of Joshua’s Trail, the popular Michigan radio show of black conservative Christian thought, often asks the following rhetorical questions:
This is big.
Not even two months ago, the media, Democrats, and liberals everywhere spoke with glee about Wisconsin being ranked 49th in six month economic forecast from the Philadelphia Federal Reserve bank.
But in the matter of just two months, the economic forecast for Wisconsin has taken a stunning trajectory up.
Read more By Collin Roth at RightWisconsin.com
In his latest letter, Kings of the Wild Frontier, crushes the optimism of all those, roughly 4 altogether in the entire world whose combined IQ barely breaks into triple digit territory, who believe that the debt ceiling “compromise” does anything at all for US spending patterns, weather it is for total marketable debt, or the $66 trillion in NPV of future liabilities. Gross, however, does show us the 5 ways (well, 4 plus default) that the “debt man walking”, aka Uncle Sam and his tens of trillions of future liabilities, plans to rob from you: dear taxpayer, in order to minimize the present value of these unmanageable future liabilities. To wit:
1. Balance the budget and/or grow out of it
2. Unexpected inflation
3. Currency depreciation
4. Financial repression via low/negative real interest rates
All of these guarantee that investor pocketbooks will be dramatically affected… Adversely. Let’s dig in…
Read more at ZeroHedge.com
Detroit native calls Motown’s economic and social ills a warning for the nation.
My ancestors helped build Detroit. The Fourniers were fur-trappers and farmers living hard by the Detroit River until the fledgling auto industry beckoned in the early 1900s with a better deal: $5 a day and a pension.
In the 1960s, my father opted out of the family business to be a police officer. He served Detroit for 25 years as part of the elite motorcycle unit that doubled as the riot squad. One of my earlier memories is of my parents, dressed in church clothes, leaving our house to attend the 1967 funeral of a riot cop.
Mom and dad raised four children at 15285 Coram in the city’s northeast corner, the same block upon which they were raised. All this to say: I love my hometown. And I hate what Detroit’s demise might bode for our country.
Read more by Ron Fournier at NationalJournal.com
More protestors have settled on the oft-debated mining site in northern Wisconsin, and they aren’t happy about the progress being made there. In a recently released, profanity-laden video, a group of 6-8 anti-mining activists hurl threats, profanities, and insults at a group working for Gogebic Taconite while they try to work.
Read more at MaciverInstitute.com
The level of underemployed workers looks bad on its face but even worse when it’s not the government doing the counting.
When the Labor Department released its monthly nonfarm jobs report Friday, it was all sunshine and roses except for one glaring weakness: A big jump in the underemployment rate that includes those who have quit working as well as those who have had to take part-time jobs even though they’d rather work full-time.
That rate, which economists call the U-6, jumped from 13.8 percent in May to 14.3 percent in June—a 3.6 percent increase and indicative that the 195,000 new jobs created in the month weren’t exactly of the highest caliber.
Read more by Jeff Cox at CNBC.com
The Federal Reserve has been a clandestine organization since its inception. It is not really part of the federal government; it is merely a subcontractor for monetary policy. The Fed is basically a cartel of both U.S. and European banks. It has pulled the levers in the economy from behind a curtain of secrecy since 1913 and has always enjoyed a certain degree of respect and admiration. All that changed when the economy melted down in 2008. The respect and admiration of the Federal Reserve is being shredded right along with its veil of secrecy. The Fed allowed everyone to think the cost of controlling the 2008 financial crash was just a measly $3.3 trillion. This giant lie was exposed after Senator Bernie Sanders of Vermont put a provision in last year’s financial reform bill that forced the Fed to come clean on $9 trillion in additional emergency loans and bailout money. The Fed funneled cash to foreign banks and companies right along with American banks and companies. It basically rewarded reckless and illegal behavior of greedy Wall Street bankers that caused the mess we are in now.
Nothing is fixed and nothing has really changed. The economy is still a wreck, and the Fed still wants . . .
Read more by Greg Hunter at USAWatchdog.com
China’s manufacturing advantage over the U.S. is actually due to a complex array of unfair trade practices, all of which are illegal under free-trade rules.
The American economy has been in trouble for more than a decade, and no amount of right-wing tax cuts or left-wing fiscal stimuli will solve the primary structural problem underpinning our slow growth and high unemployment. That problem is a massive, persistent trade deficit — most of it with China — that cuts the number of jobs created by nearly the number we need to keep America fully employed.
To understand why huge U.S. trade deficits represent the taproot of the nation’s economic woes, it’s crucial to understand that four factors drive our gross domestic product . . .
Read more by Peter Navarro at latimes.com