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"One should either write ruthlessly what one believes to be the truth, or else shut up."

Arthur Koestler 

Entries in Economics (326)

Friday
Nov252011

You Do The Math

Vox Day said this recently in his collumn:

As for those Republicans who believe Rep. Paul is sound on domestic policy but too naïve with regard to foreign policy, I suggest they consider the following question: Do you believe the United States is going to be in any position to project global military power when it is completely bankrupt? Even – no, especially – if you believe in the supreme importance of American maintaining the most powerful military in the world, Ron Paul is the only Republican candidate you can rationally support.

This is the basic problem no one is talking about, the "elephant in the room." Like the gorrilla video I posted a few days ago, we do not see the obvious. We are blind to it.

It really does not matter if our military expenditures are "needed" or not. We can not afford them. We need to cut spending right now by 40%. This includes Medicare and Social Security. If we exempt any portion of the budget from cuts, then the cuts have to be more severe on the rest of the budget. If we do not cut defense, then we need to cut all other spending by 55%. If we exempt Defense, Social Security and medical benefits from the cuts, then we need to cut the rest of the budget 120%. 

You do the math. 

Thursday
Nov242011

Euro Meltdown

This is Nigel Farage from January 2009. He was right. 

Today I am thankful I am not a European. 

Wednesday
Nov232011

Isn't it Awful About Syria?

Simon Black, of the sovereignman.com blog, recently had this to say: 

Did you hear about the latest civil unrest in Syria?  Police in full riot gear swarmed peaceful students who were staging a completely non-violent, human-chain sit-in at a university campus. 

The Syrian police came up at point-blank range and hosed these kids down with pepper spray. If you've never been assaulted with pepper spray before, let me assure you that it is easily one of the most uncomfortable experiences you could ever go through in your entire life. 

It was a truly disgusting display-- meeting peace with violence and brutality. Just the sort of thing you would expect from an oppressive regime like Syria. 

Except... it wasn't in Syria. It was in California... right here in the land of the free. 

I had this exact same thought. I do not understand the thought processes that condemn the Syrian government for what the American government would do in the same situation. If you think I exaggerate I suggest you remember Ruby Ridge, Waco, and Wounded Knee. 

I do not think we realize that modern society is a fragile thing. If we let the police act like stereotypical storm troopers from Star Wars, then we will inevitably have to live with the words of Princess Leia: "The more you tighten your grip, the more star systems will slip away from you." 

While Occupy people see the same problems I see, yet they, at least in some of the unofficial proposals I have read, are economically ignorant. 

I wonder how they are going to react when they see the austerity measures that America will have to enact soon. These austerity measures are the exact opposite of what the Occupy movement seems to want. It will not be pretty. 

Tuesday
Nov222011

A Debt Jubilee?

Max Keiser and Charles Hugh Smith, what's not to like? 

Thursday
Nov172011

I'm Not Dead Yet

Who can resist a good Monty Python reference? I know I can not. The biggest problem I see in participation in the coming elections is that the choice I will have is to vote for the clueless candidate or the truthless candidate. Of course, I do not want to leave out the possibility of a truthless/clueless candidate.

I just saw a debate on the Faux News Program "Cashin' In." Bloomberg had correctly porposed that the entire Bush tax cuts be allowed to expire. Our situation is so dire that we have little alternative. The talking heads did point out that there needed to be spending cuts. Even with the expiration of the cuts, we still need to cut 10 trillion from our budget over 10 years. Our leaders either do not understand this, or they are lying to get votes. The 80% of the populace that says they oppose cuts in Medicare and Social Security need better leaders to tell them the truth. 

While we are not dead yet, we only have a few short years until we are forced to undertake great austerity. I think that a little austerity now is better than great austerity and possible societal colapse later.