Category: Economics


The MO Colossus

Not like the brazen machine of Chicago fame,
With conquering laws astride from boundary to boundary;
Here at our river-crossed, westerward gate shall stand
A mighty state with a torch, whose flame
Is the imprisoned lightning, and her name
MO of Ex-IL-es. From her beacon-hand
Glows nation-wide welcome; her mild eyes command
The river-bridged land that two cities frame.
“Keep, Progressive lands, your gangster pomp!” cries she
With silent lips. “Give me your energetic, your wealthy,
Your middle classes yearning to breathe free,
The wretched refuse of your oppressive Lakeshore.
Send these, the employers, taxation-tost to me,
I lift my lamp beside the gateway door!”

(inspired by this article and the original poem “The New Colossus”)

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I wish that I could say that my title was just a little overly dramatic in order to drive traffic to the blog…but it’s not.  The big deal is that China and Russia announced today a change in their monetary policy that directly and negatively impacts the U.S.  However, it’s not China’s and Russia’s fault: it’s the U.S.’s fault because of what we’re doing (specifically, Quantitative Easing [QE]).

Here’s what’s happened: China and Russia are now actively decoupling their currencies from the U.S. because we’re printing money to devalue our national debt in the name of stimulating the economy.  This QE has been tried around the world in the past and it ALWAYS FAILS and ALWAYS DESTROYS the economy.  So China and Russia are stepping away from what has been in the international standard currency (U.S. dollars) in order to keep the U.S. from dragging them down.  But here’s the rub: the U.S.’s QE moves DEPEND on the rest of the world staying coupled with the U.S. dollar.  If other nations decouple, our currency will go into free-fall (i.e., hyper-inflation, extreme price fluctuations, lots of really nasty things and destroy countries and individual lives).

Here’s the article from the International Business Times: China, Russia to dump US dollar for bilateral trade

And for information about what Quantitative Easing is, check out “The Dummy’s Guide to QE2”:

 

So, what do you do to protect yourself against an economic collapse?
– God
– Guns
– Goods
– Gold

Just in case you don’t know what happened to the promised economic recovery, this humorous video will make it clear.

The bottom line is that government IS the problem.

(h/t to NewZeal)

Nice primer from our friends across the pond via our other friends on the other side of the other pond.  If you don’t understand why public sector (government) jobs hurt the economy, this video will explain it to you.  If you do understand why this damages the private sector (any job NOT in government), you might still want to watch the video so that you can explain it to your less enlightened friends.

(h/t: NewZeal‘s article “The Idiots Guide to the Destructiveness of Public Spending”)

GM’s IPO is under way and, even at the rate the stock is selling, the U.S. taxpayers will still be owed over $9 billion.

New job creation is at it’s lowest level in over 18 years…and last year was the 2nd lowest level.

“Communist China forced its Roman Catholics to cut ties with the Vatican in 1951, and worship is allowed only in state-backed churches, although millions of Chinese belong to unofficial congregations loyal to Rome.”

Just a little fun with this post. Tea Party people are often portrayed as ignorant (among other charges). Actually, they’re statistically better educated than the average population so imagine the chuckle I got when I found this little video from the Restoring Fear/Sanity rally held in DC on 10/30/2010. Keep in mind that the crowd was less diverse than a Tea Party rally but composed mostly of college age kids…pretty representative of the demographic of Jon Stewart’s and Stephen Colbert’s respective comedy shows…so I should be able to expect they have at least a minimal educational background. Actually, I don’t expect that, but I’m seldom wrong.

And, if you don’t know what a Keynesian is, then this video should be able to explain it sufficiently.

Where are the jobs?

If you want to create jobs, want a new job, or just need a job, this will explain why you’re frustrated.

No one should be telling you it will be “emotionally” or “politically” easy but balancing the budget (or, better yet, cutting it) IS technically easy.  And no tax increases are needed.  Here’s the explanation in this easy to understand video.

 

The key is to return to the U.S. Constitution (i.e., limiting Congressional power to what is enumerated in Article I, Section 8 ) and is achievable within only a few years (e.g., 2020 at the latest). But the voters have to be behind this and hold our elected officials’ collective feet to the fire.