Unintelligent Design in the World Economic System and the Economic Path Downward.

Abstract: The nostrum that government can intelligently design an effective social program is refuted. The government is usually mesmerized with the quest for ‘equality’ and ‘justice’ in a system where, for reasons of human conduct and variances in cognitive skills and other attributes and more, cannot exist. No members of any population can handle their resources homogeneously.  The solution of government is always to tax and then attempt to redistribute the wealth and this fails because people cannot equally manage money or assets or small segments of society and the system will soon revert back to its approximate original state.  The attempt t0 force an equitable distribution of monies and wealth among the polis eventually metamorphoses into a two-tier wealth system where we eventually observe two categories:  the ‘smart money’ and the ‘less–than-smart’ money. Thus any distribution will self-correct and redistribute according to certain metrics not possessed equally by all in the masses. The rich will again become rich and the poor will find their proper place in the economic ladder.  The inept will lose their temporary political gift of money. The fuzzy notion that ‘education’ will allow the masses to understand how to function so they can join the successful  members of society must be refuted since  using all examples where massive funds are spent on education and the social system still  remained unbalanced. California is an example of how education has no positive effect on their society other than political indoctrination.[1] Their lousy educational system could not teach their citizens how to read mortgage contracts or mange their credit. The concept of an intelligent design for society  is merely  a ruse that transfers power to  certain political entities that use the acquired wealth for their own benefit thus fulfilling the Trotsky prediction that the his government would become an elitist club which  would collect the wealth for themselves and  would act exactly like the capitalists they denounced.  The Soviet government comprising only 4% of the population controlled and enjoyed nearly all the wealth and lived in splendor. Government is never the solution and is nearly always the problem.  We now see the leftist elite coming to power in our country and the size and brutality of government will increase as it always does in authoritarian systems.

This is economic war so we have to defend ourselves in economic/military terms: pull your money out of certain banks [Citi and BoA] controlled by the government, avoid taxes and do not buy products or services endorsed by the government.   Do not buy GM or Chrysler products. Do not vacation in California, MA, New York or other places controlled by leftists. Do not order products and services over the Internet from businesses closely associated with leftist politics.  This is now a global economy so moving away for the US may soon become a viable option. Capitalism thrives everywhere it is tried and new spots for investments and profits will spring up if the US crashes into a socialist heap of unmanageable debt.  Be prepared to act.

Government grabs and holds wealth and power first and last.

One of the main follies in the human process is that workable ideas and social systems cannot work effectively for everybody so the necessity to redesign or improve the existing system draws power and strength from the dissatisfied.  When given a chance to vote, the lower classes always strive to vote money for themselves.[2]This process proceeds even though the disgruntled may become worse off from the effects of the new design. The solution thus, monotonously, becomes an urgent need for more government.  When we hear that we must ‘do something for the people,’ the people, whoever they are, eventually absorb the full brunt of the failure from this ‘something’ and suffer from starvation, government, poverty or disease. Part of this frantic quest for alternatives to proven viable economic and social systems has produced disasters like the French Revolution^[3], the Russian Revolution, the Great Proletarian Cultural Revolution^[4]  and many others. Many of the citizens of these movements fell under programs like The Reign of Terror^[5], Dekulakization^[6], The Russian Purges,^[7] the famine in the Ukraine known as Holodomor (Ukrainian: ????????? translation: death by starvation)^[8] and events such as in the sadistic genocide of innocents by Pol Pot and the Khmer Rouge political party in Cambodia[9], There are too many examples of this madness to even list by title. So, the quest for power and wealth by political operatives goes on under new names, the current one being ‘economic stimulus’ or, in my wording, unintelligent design.

In most of these cases above, society was not exactly perfect for all, but the loss of so many dozens of millions of lives from 1900 to 2000 prompts us to believe that there was really nothing good accomplished in all these efforts.  Certainly fewer would have starved than died in the bombs and on the firing lines. These are examples of raw and indecent quests for power by grabbing the land and assets of others for the reasons of selfish and maniacal lust and wasting those assets in a firestorm of hunger, murder, disease and war [51 million in WW1 and 31 million in WW2 alone]. The leaders of these political operations were too competent to be labeled as clinically insane so they were mostly greedy sadists and fanatical egoists. Competition for power produces disasters like we saw in Rwanda[10] and Zimbabwe.[11] And we thought the Romans, Mongols, Huns and Moors were vicious.

Politics is war and conversely

The examples above are extreme but can be used to proscribe the outer boundaries of how far ideologies can push people into the grave. There are other variants of this political lust for power that are confined to monetary matters rather than to piles of skulls or furnaces filed with ashes or the stark visions of ossuaries that hold the unsorted bones of millions who died in massive world wars in Europe. If we merely subtract the actual firepower from examples above, we can view the extract as a series of similar military actions suddenly isolated to act as strict political processes that are strikingly like the military operations above.  Paraphrasing and repackaging Clausewitz,[12] we find that war is politics and conversely. We see the same contentious arguments, insults being hurled, corruption, and concentration of forces and media bias [propaganda and veiled stoogery] as during real wartime limited only by the absence of dead bodies littering the landscape. The causalities are our bank accounts and equities. Here, the quest changes  from the direct conquest of strategic geographic locations  and  is now redirected toward the aggressive seizure of  wealth and other  proceeds by so-called democratic means  and the justification for conquering money versus land  is invariably a ‘redistribution’ of such wealth to be ‘spread around’ so as to benefit us all. This is economic war conducted by political means. This is politics conducted by economic means.

What we have viewed recently in this Herculean $787 billion spending spree[13] by Congress was the equivalent military version of the Blitz where tax monies were frantically being assigned to new social programs behind closed doors and those elected officials who voted for the measures did so almost entirely by party lines and the losing party had no inputs.  This massive abuse of power and can be viewed as some form of putsch or power grab. Such actions were seen in the past in mostly totalitarian governments and in places like the Politburo.  Corresponding to the Soviet System, Nancy Pelosi[14] [and other leeching reptiles[15]] becomes some High Commissar and constructs ‘legislation’ in secret is the contents are unknown even after the ‘vote’ in the House is conducted. Indeed, those who did vote for the massive spending had no detailed knowledge of what was actually in the bulk of such a transfer of wealth. There was not enough time for any reasonable person to digest 1100 pages of legislative paper in such a short time. The impetus for this was fear mongering designed to enhance political power. We had to do something ‘quick’ or something worse might happen. This piece of negative logic serves well in mob scenarios, fires in public places and muggings in Central Park.

To follies like this we can assign the label Unintelligent Design.

In military terms, this massive spending thrust is equivalent to your forces overrunning the enemy and then suddenly running out of supplies and being forced to forage and scrounge for the basics. Since the weapons are not blades or axes but dollars, we wonder where the dollars might come from. The current battle ground is based on jobs, or the lack thereof:

“High unemployment rates, especially among young workers, have led to protests in countries as varied as Latvia, Chile, Greece, Bulgaria and Iceland and contributed to strikes in Britain and France.”[16]—NYT Business Job Losses Pose a Threat to Stability Worldwide

“Robert Rector, a prominent welfare researcher who was one of the architects of Clinton's 1996 reform bill, warned last week that Obama’s stimulus plan was a “welfare spendathon” that would amount to the largest one-year increase in government handouts in American history.

Douglas Besharov, author of a big study on welfare reform, said the stimulus bill passed by Congress and the Senate in separate votes on Friday would “unravel” most of the 1996 reforms that led to a 65% reduction in welfare caseloads and prompted the British and several other governments to consider similar measure”[17]--Obama warned over ‘welfare spendathon’ The new administration's economic stimulus plan may undo reforms that cut the dole queues, critics say.

The unemployed, particularly those of marginal cognitive skills or those who are drug dependent, might choose more welfare over the drudgery of work. Why not? The Welfare Reform Act was the only successful restructuring of a major social program in our history and now we might get it back with more poor people on the rolls including millions of illegal aliens.

But, now, getting back to the military analogy, we then must think about the equivalent of ammunition to fight this war and that is money. Money derived by taxation is falling as the GDP is falling so we are forced to do what? Barrow? Run the printing presses? The world is going broke, China is crashing, Japan is stagnant so from whom do we barrow? Ourselves!?

Global financial meltdown

The International Monetary Fund [IMF] is broke and Japan, of all people, has just pledged $200 bln.[18] Things are really rough if the mercantilists are throwing their much-needed reserves into the world pot as ‘"second wave" of countries will soon fall victim’ to the financial holocaust.[19]  This certainly means Poland and Hungary and probably Ireland and even England. This is equivalent to a world war that uses debt and packed mortgages as the primary weapons of destruction.  A few trillion dollars of deftly directed toxic assets will sink banks faster than the Turks sank British dreadnaughts in the Bosporus.

This novel warfare was derived from the unwarranted use of credit to extract wealth out of rising real estate prices. The reverse process works just as well. We saw this begin in Japan in the 1990s with rapid decline in the Tokyo Real Estate prices, stagnation in their economy and a drop in the Nikkei average from about 30,000 to the current 8,000. This spread to Argentina and Sweden and most of the world. China’s industrial heartland along the Yangtze River valley is collapsing. The world’s major economies are contracting more than 6%.[20]

Losing the economic war to massive debt

This novel war now has the industrial world in a shoulder-to-shoulder fight to the economic death against the forces of deflation caused by massive debt. In the midst of this battle, our leader Obama and his Democrats, now have found a way to assist the enemy by spending money we don’t have so as to help destabilize the world’s money supply and encourage first more deflation then massive inflation. If we print money then inflation will soar.  We are fighting a deflationary spiral caused by debt with more debt? [21]Obama sends his diminutive Treasury ‘expert’  Tim Geithner to Italy to tell the G-7 allies in this war that somebody needs to buy up our bad debt of about 3 trillion dollars  while we create some more debt real soon. This is equivalent to an army in a huge battle suddenly burning up its munitions and then declaring a truce. Obama’s economics ‘expert’ Paul Krugman thinks we should spend even more and nationalize the banks. [22]

The Managing Director of the IMF was quoted: Mr Strauss-Kahn, who warned recently that his [IMF] resources could run dry within six months, said: "This is the largest loan ever made in the history of humanity [referring to Japan’s $200bn offer]. They might know, they have struggled with deflation for the last 18 years with little success.  Is this a result of their unintelligent design to handle deflation and stagnation? Certainly so. It didn’t work.

This is unintelligent design

The design of this economic system with its cancerous credit backing is as unintelligent as anything so far constructed in the universe.  Debt, as it now stands, will crush the known world assets and will force the battalions of our army to split up and fight each other in the spirit of protectionism. We have met the enemy, it is debt and we fight debt with more debt. That is really stupid. [23]

But, the war is not over. When countries crash the leftist factions in each unit will want to tell us all that capitalism was at fault and then set up command economies as they did in the USSR and North Korea.  We need a Nobel Prize for Unintelligent Design. I nominate Bear Stearns for the first one. [24]

We are in a economic and political war zone where the assets of many of us will be wiped out for the cause of creating another ‘Great Society.’ If we do nothing, the government will attempt to own everything and control even the minutest details of our lives. That is how the left operates. The economy clearly cannot support all the socialist programs on the Obama agenda.[25] Obama has declared economic war on us.[26] We must fight back.

rycK

Comments to: ryckki@gmail.com

California Sinks into the Financial Abyss: The Leftists will NOT Stop Spending. 

Abstract: California is finished as a society.

 California is a critical test case for the world to watch[1] and test the theorem:  if a place that large can crash fast enough in a suicidal financial maelstrom then observers might learn something useful from the process. It is clear that the cretinic subculture that produced the idiot socialists and Marxian droolers and elected them and endowed them with political power so they could strut and squeak and hop and clap in Sacramento has succeeded in producing a nest of monsters. The usual words required to describe the leftists in California [like pervert, loser, druggie and imbecile] no longer suffice to offer an adequate description of these beings. We probably need to barrow some new words from the rodent or insect worlds to study and discuss their antics. Simply stated, they will not accept any financial responsibility for their wild social spending. They intend to tax and spend until oblivion comes and then beg money from Washington. I saw behavior like this in the 60s when many ‘students’ could lay around for years, smoke dope and copulate with any creature in sight because they had a ‘sugar daddy’ who would pay the bills. They wanted to change the system then. They have succeeded.

Here is their problem:

They have a 104 bln dollar budget and a looming 42 bln dollar deficit. The state laws state that they need a 2/3 majority to pass spending and taxation laws and the Republicans are holding out. So, in the latest plot, they have come up with this farce:

“The budget put up to vote over the weekend session would have outlined spending for the next 17 months. It called for $14 billion in tax increases, $15 billion in spending cuts and $11 billion in borrowing.”[2]-- California Lawmakers Fail to Pass Budget Feb. 16, 2009, 3:25 A.M. ET

Now, given that the state is overrun with illegal aliens, besotted with dopers and perverts and has a lousy school system [that costs 40 bln a year] that is almost as bad as Washington, DC or Detroit and, to cap this off, has to lowest credit rating of the 50 states, they have nothing but chaos planned for the very next budget of 2011.

We might ask: How can you barrow 11 bln to get through the next 18 months when you must barrow more after that? When does this stop? Who is going to buy your phony bonds? The Chinese?

Next round, are we going to see California cut spending another $15 and raise taxes another $14 billion and barrow yet another 11 bln? It only takes 7 rounds of 15 bln dollar cuts to cut the budget to zero, a good idea in the minds of many. They spend 18 bln on salaries for their so-called state employees and 40 bln on schools so what do they cut? If they fired half their union stooges they could only save 9 bln and if the closed down half the schools they would only save anther 20 bln.

If they freeze spending at 104 bln and cut another 15 bln next round, but just once, then they would have to borrow another 11 bln. These numbers really get exciting when you look down the Golden Brick Road for a few years.

But allowing for a mere 5% increase in the budget per year with no more cuts, this happens:

Hey, what is 250 to 300 bln among friends for a decade? That works out to only about 329/50 or about $7,000 dollars for every single taxpayer who lives outside California.  That is only $12.65 per week for 520 weeks and just below the $13 we all gonna get from the O’Bozo stimulus, if it lasts that long.  We can afford that much.  The other alternative, not esthetically endorsed by the Republicans, is to raise increase taxes to the skies. We can wonder how the taxes might go. Is it possible to levy a 100% tax in the California system?  I think the liberals could explain how that would be a fine example of social justice. Would Sacramento dive on this opportunity? Or, how about a tax rate above 100% when you could save taxes by not living or working there? Isn’t everything free if the taxes are 100% or higher?

The only hope for the budget wizards in Sacramento is to levy a wealth tax and pull out say 5% of all citizen’s homes and assets per year, which would buy them a decade or two. The drug addicts, losers, pan handlers and illegal aliens would not have to pay as they have essentially nothing now except the vote. Maybe Sacramento can instantly make all illegal aliens citizens or put up a referendum to this effect and let the illegal aliens vote on that as well.  How about having a plebiscite where only aliens can vote to become citizens if they wish. That would be fair. The other solution is a Marxist revolution where private property and all the bank deposits become the property of the state.  That worked very well in Russia, Cambodia, Cuba and China. The people were taught how to be happy and adore their leaders. All it takes is a little education.

 To suggest that California is rigidly locked into some financial and sociopathic misadventure that will end with a terminal episode vastly underestimates the situation.

 The remaining question is: will anybody learn from this wreckage? I doubt it. Just keeping taking more drugs and raising taxes and Californians can spend their way to prosperity and enjoy life in the sun. Europe has already discovered some of the bliss of the California Experiment in places like Paris and Berlin and London and can welcome suggestions as how to rescue some more wealth and spread it around among the masses. Burning 500 cars a night in Paris actually created jobs, a stimulus of sorts.

 rycK

 Comments to: ryckki@gmail.com

The Babbling Brooks of the NYT Babbles  and Fantasizes about Financial Reality and Economic Certainties.

Abstract: David Brooks soars into some futuristic world where politics and economics fight to the last penny and drop of blood. In his fantasy he predicts that government efforts will only lead to a stagnant economy and the error in the planning calculations was not properly estimating the effects of social psychology. Our society has to be reformed so that we may rise about our levels of low trust to a new era of high trust in our government and optimism in their promises.  We might conclude from this that our attitudes must be altered from those who chose a critical analysis of how the government is sinking our economy into a True Belief in the splendor of modern government. Get ready for some heavy propaganda as our government has saddled us with a phony economic plan that will ruin our economy and will attempt to convince us that massive debt and inflation will build a better society.  Smile and be happy.

As we stroll through the political rants of the NYT—aka the Walter Duranty Papers[1]--a turn-of-the-crank Marxian fog horn that gets noisier when we are cruising at full power against the rocks, we frequently read quirky predictions for the demise of our society.  Facing a world-wide financial catastrophe, the New York Times features some whimsical tokenic[2] prophecy from their Chief Babbler David Brooks,[3][4][5] [6] cast, interestingly, in the future past perfect subjunctive tense. We must now be entertained by political fantasy.  This will be fun, of sorts.

The dream begins:

“Between 1990 and 2007, the total mortgage debt held by Americans rose from $2.5 trillion to $10.5 trillion. This rise was part of a societal credit bubble that burst in 2008. To cushion the pain of that collapse, federal authorities decided to replace private debt with public debt.”[7]-- The Worst-Case Scenario by David Brooks Op-Ed Columnist Published: February 12, 2009  [Emphasis is mine in all quotes.][All quotes are from this link in this essay today unless otherwise indicated.]

This is a rare beginning for any monograph emanating from the Old Gray Lady.  The fairy tale begins with the facts and carries the implicit implication that there was a tragic strategic mistake on the part of government.  Who checks the output of the non believers at the Times? The proper lead off for this propaganda and mood-swinging piece is to condemn capitalism and tax cuts and ending with a tear-jerking  array of anecdotes on how illegal aliens struggle for self respect while selling  oral sex and drugs in the San Francisco alleyways. How did this piece survive uncensored? At least, we were spared an essay on the splendors of socialism. Perhaps the answer lies later in this commentary from Brooks.

“In 2008, the Bush administration increased spending by about $1.7 trillion, and guaranteed loans, investments and deposits worth about $8 trillion. In 2009, the Obama administration spent $800 billion on a stimulus package, $1 trillion on a second round of bank bailouts and committed another trillion on health care reform and other bailout plans.”

All mistakes.

So, the follies build to a crescendo.

“During 2010, the economic decline abated, but the recovery did not arrive. There were a few false dawns, and stagnation. The problem was this: The policy makers knew how to pull economic levers, but they did not know how to use those levers to affect social psychology.”

Stop here for a reality check. The notion that the economy would bottom out given our inability to service about $600 bln per year in debt repayment is not realistic. We cannot afford this. Our economy may just continue to plummet. If banks start to fail again FDIC will just resort to the printing of money and we are lost.  Our debt will soon soar above our annual GDP level, an amount from which we cannot recover without massive inflation and a bailout from somewhere else.  What is missing in the fumes of this pipe dream is the hard reality of the government versus private spending ratio in the GDP. The Krugman assumption[8] is that the government can spend whatever is necessary to make up for loses in consumer spending to keep the GDP at current levels and can create jobs ipso facto by mere spending.  Theories like this are shown to be utterly false using the USSR, PRC and other failed economic systems as examples. The PRC is also crashing. We are seeing Europe disintegrate[9] and burn in a massive ditch of debt and their phony economic models and social services are exactly what brought them to the abyss.  We should copy this folly? California cannot recover from its current 40% deficit in its budget even if it fires every single government employee [including Arnold] in the state and also closes down all the schools. [10] Apparently, we are expected to follow Europe and California down the path to serfdom with a smile on our face and a deep trust of our government. How many people trusted their governments since 1900 and then went before the firing squads Oh, 100,000,000 souls?

There are two points that need clarification:

[1] The societal credit bubble that Brooks glosses over was not distributed homogeneously among the masses. 80% of us have good debt and have managed our lives in an exemplary fashion. We have built the most successful society in the known world and owe most of this to ignoring the government when it interferes. We may have to do this again. The bad debt was a direct result of  our worthless government forcing banks to loan money to some unfortunates, many incompetents, a host of social misfits, a few million criminals, dozens of millions of parasitic illegal aliens and speculators.  This was the CRA [Community Reinvestment Act].[11][12] The original purpose of this socialist scheme was to redistribute the wealth without equally distributing the cost. Fact: the low class was given wealth with no responsibilities at all to repay its debts and only their vote was desired as payment. The credit defaults come from the low class, mostly Democrats and criminals. Poncho the Parasite made out very well in this scheme.

[2] The blather about social psychology is out of place in a discussion about economics.

This continues:

“Essentially, Americans had migrated from one society to another — from a society of high trust to a society of low trust, from a society of optimism to a society of foreboding, from a society in which certain financial habits applied to a society in which they did not. In the new world, investors had no basis from which to calculate risk. Families slowly deleveraged. Bankers had no way to measure the future value of assets”

Brooks performs the elementary blunder, even in this fantasy, that somehow average Americans have lost their ability to calculate risk and how to manage debt. No educated American should ever fully trust their government for this very reason. Just look at the wars and phony social programs.  We can certainly calculate both risk and the propensity to make profits from any scenario proffered by the government or business if we rise above the welfare and federal penitentiary classes. Banks can easily predict the future value of assets as they have done all along. All they need to do is to stop lending to deadbeats, losers and drug addicts. The insinuation here is that we need to be reeducated in, perhaps, the Maoist themes. We will get a chance to assess the business aspects of the massive 3 trillion debt offering that Little Timmy Geithner mumbles about: "… a process of providing a market for the real estate-related assets that are at the center of this crisis. Our objective is to use private capital and private asset managers to help provide a market mechanism for valuing the assets.”[13][14]-- Except from Geithner [Emphasis is mine in all quotes.] Who will buy this crap? The assets are dead if mortgages cannot be foreclosed upon.  What is the scam here? To sell tax liabilities to the public?

A failed recovery predicted in this phantasm:

“The failure to generate a recovery led to a collapse of public confidence. President Obama’s promises of 3.5 million jobs now seemed a sham and his former certainty a delusion. The political climate grew more polarized. That meant it was impossible to tackle entitlement debt. That and the economic climate meant it was impossible to raise taxes or cut spending or do anything to reduce the yawning deficits. Federal deficits were 15 percent of G.D.P. and growing.”

Most of us have no public confidence to start with now. Why should we? Who got us to this point? The fools at Treasury are printing money and throwing that money willy-nilly at the banks hoping to prevent deflation.  A liquidity trap currently prevents the money from rushing though the banks and multiplying itself by 10 or more[15] and creating high inflation. They have panicked and don’t know what to do. More accurately, the knowledge that phony government spending and high debt can fix an economy in a steep deflationary spiral alerts the investor and home owner to avoid debt and minimize spending thus lowering the GDP.   Certain purchases become a financial and political liability now such as buying a car from GM or Chrysler, two basket cases being coddled by union lobbyists and fevered Democrats who function as union stooges. GM cannot recover from its 60 bln in debt. There is no confidence in our future economy now by more than half the citizens. Brooks mixes the present and future in his construction. The phone calls and e-mails to our elected servants in Washington are running very high on the negative side of the balance sheet. They don’t like this and are fuming. Those who pay the freight in this society, meaning taxpayers and job creators and producers, clearly see a rip-off in the making and their wealth will be shifted to the low class in exchange for votes.  Our worthless government will now prevent foreclosure on homes thus allowing the owners parasites to squat and zero out the debt at the expense of the taxpayer who inherits the mortgage debt. Apparently, the government will ‘buy’ this toxic debt.  How will they pay for this? This is part of a massive tax liability and a gift to Main Street. The proper response to this is an economic revolt.

Brooks sums up with this nonsense that continues to tautologically extend his psychology arguments:

“The nation had essentially bet its future on economic models with primitive views of human behavior. The government had tried to change social psychology using the equivalent of leeches and bleeding. Rather than blame themselves, Americans directed their anger toward policy makers and experts who based estimates of human psychology on mathematical equations.”

This essay is a clumsy attempt to shift the blame off liberal economic ideologies onto a mass of ignorant citizens who stumble around in some kind of social fog and need constant guidance from elitists. The gaping hole in this logic is the phony notion that the success of an economic model depends on human behavior. This is only true for those whose behavior is negative in terms of participating in the economic arena. Extending the Brooks Logic here we might conclude that since the majority of people elected in California want huge tax increases and spending that this will be an automatic success if they just believe it will work. Nobody who participates in capitalism has any blame to share unless they cannot understand the game. Most of us soar well beyond the mental and societal capabilities of our government leaders. They are mostly just a pack of slimy bribe-hunting parasites like Murtha, Rangel, Jefferson, Clinton, Dodd and others who should be in jail now. They have lost our respect.

Brooks scrounges for a politically elastic metric to replace sound economic practices and suddenly finds emotion as a good liberal must. I am surprised the government is not passing out tranquilizers in his little story.  He wants to inject the human equation into the calculus here and ameliorate the response to the doom we face in the financial markets. Happy people spend money! He wants us to feel better about being losers in a world where success will never rewarded and sloth, sodomy and drug addiction are positive attributes. This last little twist was necessary to get this wreckage past Mind Control Central at the New York Times.

Your now absolutely worthless government is frantic for capital and has very few places to get at it. Your 401(k)s and taxable assets are now at risk. Confiscatory inheritance taxes [ Communist Manifesto: 2.A heavy progressive or graduated income tax. 3.Abolition of all rights of inheritance.][16] are now certainly to be proposed. A wealth tax will soon be proposed as it was recently in California.[17]They know that printing money will sink the economy and produce chaos and they will do either that or try to make some kind of convincing argument, based on elitist  views of human behavior, of course, following the theme of this fantasy, that the government needs to grab your wealth and spread it around to be fair.  You are instructed to welcome this opportunity with tears in your eyes to share and participate in the New World Order.

Be a good stooge and work on your human psychology metrics.  Pull your savings out of the banks and shower them upon the unfortunates in the streets. Control your rage as your taxes rise and money flows into hands of welfare queens and drug addicts and illegal aliens. A happy citizen is an asset to socialism. Obama and his elitists know what is best for you.  They know how to spend your wealth for the good of all.

rycK

Comments to: ryckki@gmail.com

Krugman of the NYT Complains about a ‘Failure to Rise.’ We Should Spend More and Nationalize the Banks.

The New York Times—aka the Walter Duranty Papers [1] has an all-encompassing and circuitous track record of apologizing for any form of big government as long as it involves huge spending and high taxes. Today, the Times’ famous noneconomics economist Paul Krugman [2][3]grinds away with some bizarre mental notions about a ‘Failure to Rise.’ If this is a blurred sexual innuendo then it has succeeded, at least in my case. Let us enjoy his strange theories on economics and government.

I[4] have included an executive abstract of this blog that condenses the facts and themes.

Abstract of this blog: Paul Krugman continues to honor and sustain his monotonous and tautological socialist puppet image as a false economic prophet and now tells us that government spending must make up the coming deficit in the GDP. This nostrum, straight out of Moscow Central Planning or other such Marxian think tank follies, supplies us with the facts to declare Krugman an economic counterfeit or, perhaps, merely a garden-variety, simple-minded Marxist. There is no lucid discussion of debt in any of Krugman’s recent rants as to how we can handle massive debt or the looming inflation we will get from printing money.  The only position he defends is that tax cuts are never an option. He advises us to ignore the deficits for a few years. Krugman hopes to nationalize, temporarily[?], the banks so as to do something with toxic assets produced by leftist social programs that gave mortgages to people with lousy credit and illegal aliens.

In today’s exciting episode Times’ igNoble Leechette[5][6][7][8] starts with this:

“…stimulus package was a great victory for President Obama…. Break out the Champagne!.. Or maybe not. [What?? Ed.] …These aren’t normal times, so normal political standards don’t apply: Mr. Obama’s victory feels more than a bit like defeat. The stimulus bill looks helpful but inadequate, especially when combined with a disappointing plan for rescuing the banks. And the politics of the stimulus fight have made nonsense of Mr. Obama’s postpartisan dreams.”[9]-- Failure to Rise by Paul Krugman Op-Ed Columnist [Emphasis is mine in all quotes.]

 This can only mean that this budget-busting monstrosity is not big enough in the eyes of people like Krugman. Like sex and drugs for many liberals, there is never enough. Krugman’s postpartisan dreams are wet, at best.

To hear his own head rattle to the thesis of the The Internationale (L'Internationale in French)[10] our krugmaniacal econowizard dons a grass skirt and then throws the old moldy bones on the drum and regurgitates his hackneyed analysis against tax cuts, which spurred on our economy for JFK, Ronald Reagan and George Bush:

“…In both the House and the Senate, the vast majority of Republicans rallied behind the idea that the appropriate response to the abject failure of the Bush administration’s tax cuts is more Bush-style tax cuts.”

One reason for this imperceptive view is that massive spending has trashed our economy with too much debt, from which we may not convalesce, and in a debt-driven depression-induced deflationary spiral this can only make things mediocre at best. This stimulus only encourages the size of government and does not address job creation. Government jobs are not really jobs—they are inefficient and only contribute to costs.  They are anti-jobs akin to antimatter.  In the mode of disintegration when antimatter meets matter, government jobs destroy society. Government employees, apart from the military and bare essentials are merely parasites.  Tax cuts along with spending cuts would give us both prosperity and a balanced budget.

As for tax cuts, Obama could have cut FICA and FICM and/or some other withholding taxes and transferred money from Treasury to temporally cover the shortfall.  Growth in the economy and increases in tax revenues would have paid that back. That tax maneuver would have instantly injected money into the population of workers. Cutting corporate taxes would have encouraged business to expand, take some risks and hire more people. No.  They opt for failure when they had a chance to save the economy.  Now, we head for a debt-driven depression. Nobody will dare loan money to people with phony government jobs. They will lose them in a few years. Watch California and New York.

“For while Mr. Obama got more or less what he asked for, he almost certainly didn’t ask for enough. We’re probably facing the worst slump since the Great Depression. The Congressional Budget Office, not usually given to hyperbole, predicts that over the next three years there will be a $2.9 trillion gap between what the economy could produce and what it will actually produce. And $800 billion, while it sounds like a lot of money, isn’t nearly enough to bridge that chasm.”

This hyperignorant statement shows us exactly what Krugman is and why he is not: an economist. He just affirmed that the ‘gap’ in gross economic production should be made up by government spending. This sounds like Sweden and France, both heading to a good long dive into the latrines as we write. Krugman can only endorse government spending as the source of maintaining the GDP. Well, the USSR had essentially 100 % government spending for 74 years. How did that turn out? Their command economy is crashing again as this is written. Their ruble is so much toilet paper now.

Krugman now solidifies his position as a Marxist [or a simple stooge thereof] as he pronounces Little Timmy Geithner’s phony debt plan as ‘vague’ and then calls for nationalization of the banks:

“The plan sketched out by Tim Geithner, the Treasury secretary, wasn’t bad, exactly. What it was, instead, was vague. It left everyone trying to figure out where the administration was really going. Will those public-private partnerships end up being a covert way to bail out bankers at taxpayers’ expense? Or will the required “stress test” act as a back-door route to temporary bank nationalization (the solution favored by a growing number of economists, myself included)? Nobody knows.”

Tim’s plan was vague as he has no notion of how to sell the toxic debt. The bankers are stuck with toxic debts from giving mortgages to losers, mostly Democrats, inner-city Main Street types  and illegal aliens. A temporary bank nationalization is like a temporary case of AIDs.

“And I don’t know about you, but I’ve got a sick feeling in the pit of my stomach — a feeling that America just isn’t rising to the greatest economic challenge in 70 years.”

This phallic allusion is sickening as it tends to equate failure with promiscuous sex, probably drugs and other leftist grand accomplishments. The greatest economic challenge will be to recover from massive inflation caused from printing money, a process endorsed by leftists called ‘quantitative easing.’ O’Bozo will become the very essence of failure on this planet.

So, we have two years of massive debt and massive spending on line before a House majority could stop the spending and reverse some of this wreckage.  Looking into the future, we know that such government spending cannot end with this mere 800 bln spending spree. Krugman just alerted us that we are about 2 bln short.  Plan to avoid taxes, watch your spending and start learning how to cope with first deflation then massive inflation. The massive debt and irresponsible spending will drive the deflationary spiral at full speed down and we will lose a million jobs a month. If we cannot hold this government spending to a certain level within 2-3 years then we will become a third world dung heap or some  Anexo al Norte de México. Viva Zapata Cavrones!!

Massive debt will bury us. Get ready to get into a bunker mentality.[11]

Maybe the UN will give O’Bozo the Robert Mugabe Prize for wealth redistribution.

rycK

Comments to: ryckki@gmail.com

O’Bozo the Clown and His Lying Neo-Marxist Droolers Ruin the Economy and Put Criminals into Power.

An analysis of what Obama was and what he is now is becoming disturbing. His background, what we can learn of it, is that of a dexterously crafted caricature of an elitist that was groomed to be a reflection of some plastic political reflection of ‘change.’ He was indoctrinated into fashionable Neo-Marxism by some of the best fellow travelers and was taught how to be an ideological racist while avoiding the obvious appearance of a race baiter like Al Sharpton or Louis Farrakhan. He was mesmerized by Jeremiah Wright for 20 years. He is slick in that instance.  What he turns out to be, so far, is a bungling stooge whose control of his party and his mouth is metamorphosing into a sad joke.  We can seriously now question his ability to lead anything given what he has shown us and who he selected for his staff.

[1] His first obvious mistake was Joe Biden. He then chose a pack of worthless lobbying tax maggots and criminals for his staff, such as Bill Richardson and some other undesirables.  Democrats seem to be above paying taxes and are frequently crooks. His choice of Judd Gregg was a poor one as he must have known that Gregg is honest and would want to run Commerce according to the rules.[1] Obama apparently wants to shelter the census count from view and cook the books in the manner and flavor of the slimy sewage he floated up from in South Chicago. Chicago is the most corrupt city north of Mexico City and is a human latrine. He has had his biggest success blowing smoke rings into the feeble brain case of Twit One, Olympia Snow, and the noticeable senator from Main. She has a malleable mentality that is easily pricked to explode with simple sob stories, some dire threats and fluff and apparently seeks approval from someone with power. Twit two is a mirror image with a stammer. Arlen Specter is just an idiot and is isolated from political influence. He ‘thinks’ for himself.

[2] Hillary Clinton, a major mistake in having enemies at his back, was given a post at State so as to move her sorry, lying, criminal, bungling backside out of competition.  As times start to change, she would have to spend less than two years as a puppet on his stage before challenging him in the next election, a length of time that might be a bit unnecessary given Obama’s sudden plunge into disgrace. Bill Clinton’s Fairy Tale has come to pass. If he promises to fix the economy fail, and it become worse as he is not likely to be part 0f the solution and thus aggravates the situation, his ratings will hit bottom except for his raft of bedazzled minorities who monotonously think he is some kind of deity. Voters will not like to see his ‘changes’ put them in the soup lines or throw up double or triple digit inflation to destroy their wealth. Only his core constituents on welfare are safe from unemployment and the effects of inflation on food and housing. Their votes pay for their loot.

[3] He asks for bipartisanship but allows Nancy Pelosi to craft 32 new social programs in a trillion dollar spending package in secret[2] without showing Republicans even a rough draft of the works and baits some soft Republican senators with unknown promises. Nobody more than three feet from her skirts have any notion of what this massive debt excursion will look like. We do know she is spending 30 million dollars to save some marsh rodents, a critical economic vector that will help save the planet.[3] But in the parlance of the race-baiter from Brooklyn this is just a ‘little porky thing.’[4] The No-More-Pork Obama saunters away from this intermezzo to scrounge for more support. He looks like a fool.

[4] His choice of a Treasury Secretary is some kind of a joke as he includes within his circle one of the main architects of the mess that Hank Paulson created, if, indeed it was a mess—we don’t know yet—who wants to spend 3 trillion dollars but has not clue as to how to finance  the debt. How is the government going to sell this? With bonds? Who will buy phony paper soon to be inflated to toilet-paper values.” Oh! Fannie Mae!

Little Timmy Geithner Speaks:

"By providing the financing the private markets cannot now provide, this will help start a process of providing a market for the real estate-related assets that are at the center of this crisis. Our objective is to use private capital and private asset managers to help provide a market mechanism for valuing the assets.”[5][6]-- Except from Geithner [Emphasis is mine in all quotes.]

Translation: Little Timmy Geithner wants to sell worthless toxic assets to the public! This 5 trillion dollar debt comes from ‘affordable housing.’[7]

[5] He has always surrounded himself with undesirables like Bill Ayers and Jeremiah Wright and now has his PR man Axelrod and Dead Fish Immanuel[8] [a hopeful ballerina with a stubby bird finger he got slicing meat at Arbys[9]] close at hand in the White House. This is top talent. He chides CEOs for flying around in their planes and to Las Vegas while Pelosi, the Queen of the San Francisco massage parlors, where they practice progressive slavery by employing underage girls from Asia to perform ‘special’ sexual tricks, has her own private starship and wastes millions of dollars while spewing carbon dioxide over Kansas and over parts of the world as she soars among the clouds. She is off to Italy for a bunch of rewards today at 6:00 PM! [10]He seems to have nothing to say about Cold Cash Jefferson[11], Good Time Charlie Rangel the Crook  from Harlem[12] or the ramblings of the mental midget Maxine Waters, a psychotic racist and cognitive peanut, who wanted to nationalize [socialize in her words] the oil companies:[13] “And guess what this member* would be all about? This member would be all about socializing — er, uh. [Pauses for several moments] …. would be about … [pause] … basically[… taking over, and the government running all of your companies.” [14] Waters also fantasized about the CIA peddling drugs.[15] He did score with Henrietta Hughes, a welfare queen over a new house, but “she is not milking the system.”[16] Tribuo mihi quispiam nusquam.[17]More top talent.

[6] Obama’s latest gaff, probably from his infective  dealings with emotional blowhard Joe Biden[18], was to proudly announce that Jim Owens, CEO of Caterpillar, Inc., would hire back discharged workers if the stimulus package, whatever that might be, went through. He was essentially called a liar and made to play the part of the drooling clown.[19] He is informed.

The former street hustler and ‘community’ organizer now looks like a bungling idiot so we want to thank the people who voted for ‘change’ because they are certainly going to get some.  Barack is a frustrated and revenge-seeking political activist surrounded by some of the most hateful and psychotic minorities and other mental misfits in the Northern Hemisphere and has as his central goal: the redistribution of wealth via government spending tax policies. He will drive the country into the depths of a debt-drive depression with more debt. Buy gold.

We must wait to see how much damage he can do to our economy and society until people realize who and what this guy really is.  We could use a metric system to gauge how well he does in terms of problems associated with minorities that he hopes to change. [20] It is questionable if he can get these people off the doll and becoming productive and entice them to stop shooting each other over drug deals and maybe graduate from high school. He will probably make things worse with his phony promises about ‘Main Street.’ Here was the singular opportunity to show that minorities might rise above their station, could work the levers of government with some kind of proficiency and aptitude and demonstrate some success.  All we see so far from his administration are bias, the noisy and public ignorance displayed as class envy, a psychotic hatred of capitalism and some crude anti-white racism. Somewhere in the near future we are gong to witness some very serious social unrest that might make the problems in Watts pale by comparison. On the economic side, a major tax revolt might stall his system for years.  Why should we pay taxes if the adorable liberal Democrats fail to do so?

He has a poor start and now a poor image.  His plans for the economy appear to be counterproductive. He may make things much worse and bury us in recoverable debt.  We now have an 1100 page spending spree  almost a trillion dollars deep with interest  and the vote coming up with no time for the Senate to read and study the details. We need to rescue Pelosi’s Rodents fast!

But, that is the history of liberalism—is it not?

rycK

Comments to: ryckki@gmail.com

Our Economy is Crashing as the Liberals Celebrate. Print Money and Increase Government!!

Abstract:  The stimulus bill is a monster of wealth-destroying ferocity and even our ideological Marxist enemies can see this.  The far left have grabbed control of spending and are intoxicated with how much they can grow government.   Geithner squirms and has no idea how to fund this phony stimulus program. Loathsome degenerates like Waters and Frank now insist on defining corporate conduct and spending in our society. Nancy Pelosi secures more votes by getting 30 million dollars in stimulus for mice in her district. Apparently rodents can vote in San Fran Sicko.

The Chinese realize what is happening here and now their banking czar hates us.  They know that printing money will reduce their hard-earned US bonds to being as worthless as toilet paper. Hyperinflation is on the way. Who is going to buy our phony bonds to fund this crap?

The Theme:

 The ‘stimulus’ bill, now soaring out of financial reach of our assets and beyond  our ability to pay for it, while  providing essential funds to coddle Nancy Pelosi’s mice[1], who probably vote, is so large as to defy imagination. The bamboozlers are printing money at Treasury and Little Timmie Geithner has no notion of how to finance this wreckage. I usually quote these fools directly and in sufficient depth to avoid the ‘being taken out of context’ excuse--so let us look at some things:

With lickspittle spray like this Timmie  hums:

"Third ... together with the Fed, FDIC and private sector, we will establish a Public Private Investment Fund. This program will provide government capital and government financing to help leverage private capital to help get private markets working again for the legacy loans and assets that are now burdening the entire financial system.

[Translation: investors ignorant enough to buy this crap will get stuck with worthless mortgage debt with no way to foreclose on deadbeats or squatters.]

"By providing the financing the private markets cannot now provide, this will help start a process of providing a market for the real estate-related assets that are at the center of this crisis. Our objective is to use private capital and private asset managers to help provide a market mechanism for valuing the assets.”[2]-- Except from Geithner  [Emphasis is mine in all quotes.]

These two paragraphs say exactly nothing. But, here is some substance from the Chinese who have something specific to say:

 ““Except for US Treasuries, what can you hold?” he asked. “Gold? You don’t hold Japanese government bonds or UK bonds. US Treasuries are the safe haven. For everyone, including China, it is the only option.”

“Mr Luo, whose English tends toward the colloquial, added: “We hate you guys. Once you start issuing $1 trillion-$2 trillion [$1,000bn-$2,000bn] . . .we know the dollar is going to depreciate, so we hate you guys but there is nothing much we can do.””[3]—wild rant by Luo Ping, a director-general at the China Banking Regulatory Commission [Emphasis is mine in all quotes.]

Pelosi’s mice will make out better than Communist China on this deal. Europe is already in the tank.[4]  In a few short years, China’s ‘bonds’ may not be worth a thousand dollars en totem  let alone a trillion.  Hyperinflation can wipe it all away.

Ann Coulter has some comments on this folly:

“The stimulus bill isn't as bad as we had expected -- it's much worse. Instead of merely creating useless, make-work jobs digging ditches -- or "shovel-ready," in the Democrats' felicitous phrase -- the "stimulus" bill will create an endless army of government bureaucrats aggressively intervening in our lives. Instead of digging ditches, American taxpayers will be digging our own graves. ”[5]-- Goodbye, America! It Was Fun While It Lasted by Ann Coulter  February 11, 2009 [Emphasis is mine in all quotes.]

“With the stimulus bill, liberals plan to move unfirable government workers into every activity in America, where they will superintend all aspects of our lives.”-- Ann Coulter 

Yes, and we will have unidentifiable Neanderthal creatures like Maxine Waters [human? Female?] shouting orders to banks and local governments about spending. We will have loathsome beings like Barney Frank [Backside Barney[6]] who will instruct us all about spending and ‘morality?’

Those who voted for Obama will get their change alright. Protest time 60s style!

rycK

Comments to: ryckki@gmail.com

The Babbling Brooks of the NYT Babbles Blunders into a Financial Reality Zone.

Abstract: David Brooks has mumbled about the h0urs’s old Little Timmie Geithner speech. He wanders around the Snake Pit with comments on personalities and nostrums about leadership and how Timmie will come up a solution without “without freaking everybody out.” I just freaked out. The details of the speech include some crude outline of a ‘program’ that will spend a couple of trillion dollars very quickly and ignores the Specter of Hyperinflation, which is now a certainty. We are going to spend our way out of terminal debt.  Apparently, the standard notion that we can spend our way to prosperity and that will be tested very soon.  The loyal ‘main street’ minorities who voted for the Messiah will now have their mortgage principle and rates ‘adjusted’ to suit their political views at the expense of the taxpayers, who are in a different economic class. We can thank the Two Twits from Maine and The Magic Bullet Man for allowing the Democrats this opportunity to plunder the assets of America. Inflation will destroy our society and we will probably revert to food riots, race riots and open war in the streets.

As we read the NYT—aka the Walter Duranty Papers[1]--a turn-of-the-crank Marxian fog horn that signals when we are cruising at full power against the rocks, always provides us with some entertainment and quirky predictions for the demise of capitalism.  Facing an world-wide financial meltdown the New York Times , today, as is their custom, features the tokenic[2] prose of  their  Chief Babbler David Brooks,[3][4] [5] an interesting conservative ‘token’ who pretends at objective journalism at the behest of the Old Gray Lady. Today, Brooks instructs us in government finance and bailouts:

“It’s no fun being a leader in a financial crisis. You’ve got to be bold but reassuring, free-spending but disciplined. You must decisively crush the short-term problem without freaking everybody out

To my mind, the stimulus packages on Capitol Hill fail to strike these balances. They are broad but sloppy, too slow to make a quick difference and too enduring to avoid fiscal damage.”[6]-- Showing Some Discipline by David Brooks Op-Ed Columnist Published: February 9, 2009  [Emphasis is mine in all quotes.][All quotes are from this link in this essay today unless otherwise indicated.]

It is interesting that David Brooks manages, in one deftly orchestrated swipe, to destroy the concept, intent and viability of the current frantic bailout program in Washington. And all this proceeds the Eternal Message of Hope delivered must minutes ago by Little Timmie Geithner[7], of DirtMyth and John’s HopCan.  How nice to have a whiz kid like in the LBJ/Viet Nam era like Robert McNamara and from Brooklyn and parts of Asia too.  Diversity is at hand.

 Some words from Timmie:

"As President Obama said in his inaugural address, our economic strength is derived from 'the doers, the makers of things.”[8]—Except from Geithner’s Speech Excerpts from Geithner's speech on bank plan.

Comment: We must struggle to get at the substance here. Have the thinkers and planners been marginalized here? This looks like pitch to the unions. There are no details here.

"Instead of catalyzing recovery, the financial system is working against recovery, and that's the dangerous dynamic we need to change.”

"It is essential for every American to understand that the battle for economic recovery must be fought on two fronts. We have to both jump-start job creation and private investment, and we must get credit flowing again to businesses and families.”-- Except from Geithner

My Rebuttal:

This is sophomoric as to be hilarious. What do they teach little winkies at Dirt Myth? The ‘financial system’ is direct result of the laws of supply and demand and the financial crash, well predicted in advance[9], was caused by a falling market in house prices, euphemistically known as a bubble. This was caused by lending precious to people who could not afford to pay back the loans. The capitalist system worked very properly here as overbought and overbuilt real estate reached a point where any change in growth would force a contraction of the price. That is what happens in supply and demand structures—the prices fall to coincide with the market forces.  The alternative, which we might see soon, is for of the government to set prices of homes or, better, and adjust the mortgages of those homes according to income or political status. This would be a cunning way to circumvent capitalism and show that governments know best. That means that the loyal voters of Obama’s Main Street would get their housing subsidized at taxpayer’s expense (as the failed Fannie May mortgages are now the responsibility of the taxpayers) and most ‘main street’ citizens do NOT pay taxes. Quite a redistribution of wealth! Lenin would have been partially impressed.

More adventures are planned:

"Third ... together with the Fed, FDIC and private sector, we will establish a Public Private Investment Fund. This program will provide government capital and government financing to help leverage private capital to help get private markets working again for the legacy loans and assets that are now burdening the entire financial system.

"By providing the financing the private markets cannot now provide, this will help start a process of providing a market for the real estate-related assets that are at the center of this crisis. Our objective is to use private capital and private asset managers to help provide a market mechanism for valuing the assets.”-- Except from Geithner

From the LATrines[10], we get this translation[11]given in part here:

[1] The government will spend up to 1 trillion to try to buy up toxic mortgage-backed securities and another trillion to ‘spur consumer and business lending.’

[2] There is a future ‘plan’ for reducing mortgage payments and lowering mortgage interest rates. 

That last quote has the intriguing concept of a soon-to-be-invented market mechanism for valuing the assets. This is a wild convolution of economic theory and political commentary.  We already have a market mechanism and that is called the mechanism of the free market. All this can be simplified by stating flatly that your worthless government will now just print money to fix a natural and predictable variation in the housing supply and demand schedules with special attention to Democrats who voted for Obama.  When a market changes in a politically unacceptable direction, we now can use taxpayer tax liability to ‘correct’ the problem and keep votes on the leftist dockets. Thus, the rich can subsidize their own trip to the finance guillotine.

This is a massive transfer of wealth to the low class and will produce astonishing inflation.

Brooks takes the following view after apparently reading or envisaging the Geithner message massage:

“The whole policy is still unfolding. But one gets the sense that it is being designed to fit the crisis, not a prefab agenda. Geithner is proposing a huge intervention, but at least he seems to be running against his natural instincts. If we’re going to have a finance czar, he should at least dislike the role.”-- David Brooks

I have struggled with this for two hours and have no hint of what it might mean. If it is designed to obfuscate and befuddle the reader then Brooks has succeeded in my case. This comment soars beyond blather, hokum and credibility. That stock market at 2:27 pm 10 Feb 2009 is down 340 points [and more[12] as I continue to write]on this grand news.  Gold is up $21/oz. Does any of this give us a hint at what Obama is up to?

We must wait a few months for David Brooks to counsel us on how to deal with a depression mixed with hyperinflation. This new phony process will fail, of course, and will give us social unrest and a major change in our political system. We can look forward to wondering what Europe is going to do as they are farther down the slippery slope than we are. Maybe we can get some sound advice from our European Brothers[13] for the first time. We shall see.

rycK

Comments to: ryckki@gmail.com

Krugman of the NYT Complains about the Low Level of Spending.  Spend More and More and More!

The New York Times—aka the Walter Duranty Papers [1] has an all-encompassing and circuitous track record of apologizing for any form of big government as long as it involves huge spending and high taxes. Today, the Times’ famous noneconomics economist Paul Krugman [2]grinds on with his tautological offal-spreading awful rhetoric and moans that the President has not asked for enough money.

I[3] have included an executive abstract of this blog that condenses the facts and themes.

Abstract of this blog: Paul Krugman continues to honor and sustain his monotonous and tautological socialist puppet image as he complains about the low level of spending on the stimulus.  His only solution to any government ‘problem’ is always higher taxes, more spending and bigger and bigger government programs. He seems to claw spending numbers from the CBO and other sources out of the air like a starving buzzard frantically ripping out the entrails of some fallen creature.  He purports to have a ‘solution’ to a world-wide depression caused in the US, for the most part by psychotic spending on ‘affordable housing.’  Given the obvious onset of a depression, the only consolation for Krugman and his lackeys is to expand government and take advantage of the financial chaos that is just ahead. This essay asks the question about Europe: if socialism is so great then why are the Europeans in worse shape than we are? If Krugman was correct, their socialism would have saved them from the looming depression and they would have educated us on economics.  We are the ones with the lower taxes. High taxes should have saved them. The reverse is true. We can probably minimize this economic mess, but Europe is finished.

In its twice-weekly noisy spin of the leftist loaded dice, the Times’  igNoble Leechette[4][5][6][7], blessed with insights and the esoteric ability to divine the  essential specifics of Depression government policies, will now mechanically grind out  a newly written chorus song featuring the only words that matter to a leftist politician: Tax and Spend.

Krugman begins with:

“What do you call someone who eliminates hundreds of thousands of American jobs, deprives millions of adequate health care and nutrition, undermines schools, but offers a $15,000 bonus to affluent people who flip their houses?

“A proud centrist. For that is what the senators who ended up calling the tune on the stimulus bill just accomplished.”

“Even if the original Obama plan — around $800 billion in stimulus, with a substantial fraction of that total given over to ineffective tax cuts — had been enacted, it wouldn’t have been enough to fill the looming hole in the U.S. economy, which the Congressional Budget Office estimates will amount to $2.9 trillion over the next three years”[8]--The Destructive Center by Paul Krugman Op-Ed Columnist Published: February 8, 2009 [Emphasis is mine in all quotes.][All quotes are from this link in this essay today unless otherwise indicated.]

The Times[9] is a slick propaganda machine[10] that over-estimates the spending and solutions to just about every social problem, real or imaginary.  Using the crude mechanisms of misinformation, the propagandist frequently telegraphs his conclusion by putting the conclusion or part of that conclusion in the title or the first sentence. The body of the tome is then usually devoted to cherry-picked examples that amplify his views and sophomoric gripes usually polluted with anecdotes and other fluff. Contraindicating facts are omitted. Today, Krugman defines those moderates who populate the political center as ‘destructive’ thus condemning them and, without comment, also the right. That leaves not only the left, but he  limits his wrath only to omit only the far left who remain human in his warped view of the world. He is truly and extremist.

The CBO just tells us that the bill will cost us 9.7 trillion dollars.[11]

“The $9.7 trillion in pledges would be enough to send a $1,430 check to every man, woman and child alive in the world. It’s 13 times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office data, and is almost enough to pay off every home mortgage loan in the U.S., calculated at $10.5 trillion by the Federal Reserve.”[12]-- U.S. Taxpayers Risk $9.7 Trillion on Bailout Programs (Update1) by Mark Pittman and Bob Ivry

Krugman mumbles with this after condemning the centrists:

“But how did this happen? I blame President Obama’s belief that he can transcend the partisan divide — a belief that warped his economic strategy.”

You provided much of this economic ‘strategy.’ His idea was to ‘earn the respect and support of all Americans.’ He cannot control Congress.

Krugman waxes psychotic when the words tax and cut occupy  adjacent positions in any sentence:

“In the Senate, Republicans inveighed against “pork” — although the wasteful spending they claimed to have identified (much of it was fully justified) was a trivial share of the bill’s total. And they decried the bill’s cost — even as 36 out of 41 Republican senators voted to replace the Obama plan with $3 trillion, that’s right, $3 trillion in tax cuts over 10 years.”

“For rather than acknowledge the failure of his political strategy and the damage to his economic strategy, the president tried to put a postpartisan happy face on the whole thing. “Democrats and Republicans came together in the Senate and responded appropriately to the urgency this moment demands,” he declared on Saturday, and “the scale and scope of this plan is right.”

No, they didn’t, and no, it isn’t.”--Krugman

We do need a stimulus so I recommend [1] we cut FICA and FICM payroll withholding to zero for two years and transfer the funds from the Fed Balance sheet, [2] cut corporate taxes to zero for two years and [3] eliminate the taxes on capital gains for 5 years. Those measures do not increase government but would certainly give instant and massive relief to ALL workers and ALL corporations that generate the new jobs.  I might also send $300 per month to all persons on unemployment.

All this krugmaniacal fluff flies in the face of the following observation: The idiotic European Common Market[13], now morphed into the EU with their pretty currency, and also polluted with Islamo-Fascism, [14]is in worse shape, by far, than the US. If socialism was worth a pinch of sour owl crap then why didn’t they keep on their economic course with their wonderfully high taxes and laugh and jeer at our capitalism as we go down? No, neither socialism nor a blend of capitalism and socialism has prevented the onset of this disaster. Their status is grim and I think the EU will collapse in chaos and war and race riots. Massive debt did this.  The world-wide problem is too much debt. Japan and the PRC may follow. Japan is collapsing, again,  an ongoing economic wreckage that started in 1990.

For a survey of  the European Scene, we rely on Ambrose Evans-Prichard:

“As they [the US Congress e.d.]  dither, the world is falling apart. Events in Japan have turned deeply alarming. Exports fell 35p pc [Note: pc is ‘%’ in the obtuse syntax of he Brits ed.]   in December. Industrial output fell 9.6pc. The economy is contracting at an annual rate of 12pc….

This has echoes of 1932, when the US Congress took charge of monetary policy. We are moving to a stage of this crisis where democracies start to speak – especially in Europe.

The European Central Bank's refusal to follow the lead of the US, Japan, Britain, Canada, Switzerland and Sweden in slashing rates shows how destructive Europe's monetary union has become.

[Note: they are greedy and want to keep their currency value high at the expense of the rest of the world.]

German orders fells 25pc year-on-year in December. French house prices collapsed 9.9pc in the fourth quarter, the steepest since data began in 1936. …

Spain's unemployment has jumped to 3.3m – or 14.4pc – and will hit 19pc next year, on Brussels data. …

Ireland lost 36,500 jobs in January – equal to a monthly loss of 2.3m in the US. As the budget deficit surges to 12pc of GDP, Dublin is cutting wages, disguised as a pension levy. It has announced "Rooseveltian measures" to rescue the foundering companies.

Readers have berated me for a piece last week – "Glimmers of Hope" – that hinted at recovery. Let me stress, I was wearing my reporter's hat, not expressing an opinion. My own view, sadly, is that there is no hope at all of stabilizing the world economy on current policies.”[15]-- Bond market calls Fed's bluff as global economy falls apart By Ambrose Evans-Pritchard Last Updated: 7:22PM GMT 08 Feb 2009

Thus, Europe and Japan are going down. Massive printing of money will take us down too.

Our 10 year bond interest rate is rising.  This indicates that the cost of real capital is rising according to Evans-Prichard. Somebody found out we are printing money! This is the result of deflation.  Massive debt is responsible for this debt-driven deflationary spiral. Your worthless government in Washington is groping and frantic for money as they seem to know that this ‘spending’ is phony and is a last bleached bone thrown to a starving dog.  Their solution to massive debt is to print money and increase the debt. They will crawl back to the middle class for more loot very soon:

All they have left now is your assets, bank accounts and 401(k) s. Soon might a frantic and patriotic call for ‘wealth tax’ where they tax you according to your net worth [in addition to your income] that includes property. This favors the government also if they put in a confiscatory inheritance tax as the Communist Manifesto[16] recommends.

Are we really going to let this happen? Wake up people. We need to stimulate business—not our worthless government.

rycK

Comments to: ryckki@gmail.com