Archive for the ‘exchange rates’ Category

Consumer confidence falls unexpectedly in May

My Grandmother, a feisty old broad, had a saying for this, “Like a cat trying to cover up on linoleum.” Ever seen it? The Lame Stream Media are trying (very), but don’t you agree the word “unexpectedly is just about worn out?

And this is unexpected?
“Consumers are considerably more apprehensive about future business and labor market conditions as well as their income prospects,” said Lynn Franco, director of The Conference Board Consumer Research Center. She said fears over inflation picked up again in May.

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I have been wondering about the seemingly incoherent policies propagating out of the District of Corruption and trying to develop a model of thinking and goals that would be consistent with the insanity. I have had to abandon any thought of citizen or taxpayer well-being or maintenance of American exceptionalism in order to come up with a somewhat consistent model.

The District of Corruption has become, in essence, a wholesale club sized Faculty Lounge that has developed a plan to run the country as a university focused on the welfare of the faculty over the students or the payers of the tuition.

First is the plan to get out of debt seems to be Quantitative Easing III, IV, V, VI, and however many more it takes to make all those outstanding Treasury Bills (and their interest obligations) worthless. The fact that it will impoverish the American citizenry is as Microsoft used to say, “not a bug, but a feature.” It will wipe out the rich as well as the successful and the thrifty, thus putting all citizens’ welfare in the hands of those best qualified to judge a persons worth (no not the free market, that is seen as cruel, unfair and idiotic to the insufficiently rewarded, it must be those with the wisdom of Solomon, the Tenured).

This destruction of the dollar not only gets us out of debt while punishing those so rude to have been more successful in the free market than the new masters, but also sets the stage for the resurgence of America as a “properly structured society.” In other words the serfs need to acknowledge their proper place in the presence of their accredited and credentialed betters.

That brings us to the master stroke. In claiming that the oil companies get a “tax incentive” by writing off business expenses such as depreciation, exploration, and the cost of failed production attempts (things that legitimate costs of doing business in every other business, just bigger numbers in the oil business), the stage is set for the DOE to revoke all leases and nationalize the oil fields. After the dollar has been destroyed and whether the new currency that purchases oil is a “basket of currencies” or the PetroBuck® the wealth in the oil fields of what was previously called the United States will be more than enough to support the proletariat in their virtual slavery while the masters party like Nero. Issuing decrees as the Gods from Olympus (you have to “properly guide” those serfs, dontcha know?).

 

Using only a big piece of pork, a large knife, and a small knife, the budget chef shows how to balance the federal budget by 2020.

As a special treat, he does it without raising taxes from the current Bush-era rates!It seems like a complicated preparation at first, but it’s so simple that almost any elected official should be able to pull it off like a pro!

Domestic and foreign investors will love this, and it will also help create a stable environment conducive to long-term, sustainable economic growth.Between 2011 and 2020, the Congressional Budget Office estimates that total federal outlays – for defense, agriculture subsidies, Medicare, Social Security, you name it – will total a whopping $42.1 trillion (in 2010 dollars). To bring outlays down to revenue, we need to cut a total of $1.3 trillion in total expenditures over the next 10 years.

That sounds like a really tall order until you realize that it cutting just 3.6 percent a year for each of the next 10 years. To put it in dollar terms, it means cutting about $130 billion a year from budgets that will average over $4 trillion. That’s not so hard now, is it? By making small, systematic cuts to a federal budget that is larded up with more fat than an Ponderosa buffet, we can balance the budget without even nicking essential services.

This video is based on “How to Balance the Budget Without Raising Taxes,” by Nick Gillespie and Reason economics columnist Veronique de Rugy of the Mercatus Center. Read that December 5, 2010 piece for detailed breakdowns of spending amounts: http://reason.com/archives/2010/12/05/how-to-balance-the-budget-with

 

Unfortunately it is very necessary (unless you prefer to watch Fox Business or Glenn Beck popularize the issue).

The Peterson Institute for International Economics is a private, nonprofit, nonpartisan research institution devoted to the study of international economic policy. Since 1981 the Institute has provided timely, objective analysis and concrete solutions to key international economic problems.

Business Insider says, “Here’s Niall Ferguson’s Complete And Definitive Guide To The Coming Sovereign Debt Crisis.” Niall Ferguson is a contributing editor for the Financial Times and a regular contributor to Newsweek. As a Historian and economic expert, he contributes often to television and radio shows in the U.K. and the U.S. He has authored multiple books, among them best-selling book “Ascent of Money: A Financial History of the World”, published in 2008. He is a Professor of History at Harvard University and Professor at Harvard. Business School. He graduated from Magdalen College (Oxford University) in 1985. He was a Hanseatic Scholar in Hamburg and Berlin and a Research Fellow at Cambridge. He was then a Professor and Financial History at Oxford.

The lecture actually begins at the 8:45 mark after all the intro fluff.

To access the lecture’s slides click here.

To access the lecture’s transcript click here.

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