Posted by
rycK on Thursday, October 15, 2009 10:47:00 AM
The Cubans Teach Us
about Economics and Arithmetic. I hope Paul Krugman reads their Works. He needs
some Elementary Instruction.
The world is stuffed with bloated bureaucrats and
obnoxious patzers that broadcast
their ignorance on many unfamiliar topics at hand with sound and fury and the
tossing of bright tinsel to the applause of the media and convince many good
citizens to become losers. The ‘experts’
shuffle and dance and have offered ‘advice’ and solemn counsel to millions as
they go broke, run out of food and die in hopeless wars since they followed the
wrong paths.
The US
has had several baloney peddlers and drunks who nearly pushed the economy into
the latrines like FDR, Peanut Jimmy Carter and LBJ and lately George Bush with
the aid of Nancy Pelosi. Somehow FDR managed to get us entangled in a massive
war on several fronts in spite of our Neutrality Act and we were later able to
grow out of massive debt equal to one year’s GDP—a
process unpredicted by our so-called economists of the times. We still can view
the economic rot and residual infection from the Marxist-Leninist Follies in
the USSR
that trashed their society and inflated their ruble some 1500 fold although
they were revered by many in our country for their expertise in government and
finance. Is Obama really an Afro-Leninist, an ideological racist,
a consummate liar
and a Marxian advocate or stooge? He acts like one. He might become our new Hoover.
Politics, not exactly the preferred profession to
conduct business or operate nations, shifts like a rotting pumpkin from time to
time in various odd shapes and provides us with a model to predict political outcomes
especially where economics is concerned. The economic choices for many nations are now confined
to some mystic duality where some
‘leaders’ think we can spend our selves into prosperity [California,
the US and the UK] while others are more practical and have even studied
economics and finance and have great economies with low debt to GDP
rations. The US
and the UK
along with some sorry sisters like Ireland,
Spain
and Greece
seem to be looking forward to enjoying and celebrating a depression.
Some Brits are
particularly stubborn about the idea of bankrupting their economy with furious
spending:
“Brussels said UK public debt will
rise from around 60pc of GDP this year to 160pc by 2020, 406pc by 2040, and 760pc by 2060
unless there are drastic spending cuts.”-- Treasury slams EU report warning Britain
faces debt spiral By Ambrose Evans-Pritchard Published 14 Oct 2009 [Emphasis is mine in
all quotes.]
Other Brits welcome a financial
holocaust.
The Third World has a desperate need of cash, inter alia, and the UN wants to tax the
world starting at about 1% of the GDP of each nation. They are the most
radical, racist and incompetent organization on the planet and cannot be
trusted with a dime. The Cap and Trade Tax would add costs to everything in the
US and would allow China and India to escape such a burden because
they refuse to adhere to this nonsense.
The UK is committing economic hara-kiri [seppuku] with their carbon
emissions follies led and abetted by their inbred and gibbering Princeling of Wails who
now embraces advanced
EcoNazism.
Imagine
this. What kind of reasoning can we find that allows a nation to print money
and produce prosperity? What kind of reasoning can we explain that allows a
nation to wantonly take on phony taxes that will make them noncompetitively in
world commerce? Apparently, the detailed histories of the economies of Germany in the 20s, Argentina and Brazile a few decades later
and now Zimbabwe, where everybody is a
billionaire, have been erased from the economics texts or the memories of
certain politicians. Of course, we are following Gordon Brown down the Brown
Path to Oblivion as well since are printing money as quickly as we can to [1]
cure the TARP issue and [2] to pay for social programs we cannot afford. Our
currency is sinking like a rock in a lily pond with bubbles and froth and gold
prices, as we expect they should, are soaring.
Proponents
of this madness are ‘experts’ in the field and have impressive Nobel Prizes to show
off their acumen in financial matters.
Here we have a new Peace Prize winner
fighting two major wars and running out of money and troops and an Economics
Peace Prize winner advocating the splendor of debasing our currency. That is a
‘good’ idea we read from Paul Krugman.
The Chinese, experts on inflation from
way back, seem take exception to our shrinking dollar and complain about this
phony fluff:
Little Timmy Lies:
"We have the deepest and most
liquid markets for risk-free assets in the world. We're committed to
bring our fiscal deficits down over time to a sustainable
level.
"We believe in a strong
dollar ... and we're going to make sure that we repair and reform the financial
system so that we sustain confidence," he said.”--
Geithner tells China its dollar assets are safe On Monday
June 1, 2009
There is
an impolite and undiplomatic name for this kind of hustle frequently heard on
the streets of San Francisco and Amsterdam and earlier in Saigon in the 60s. Many of us see an economic crash on the near
horizon and have shouted such predictions from the roof tops with no effect.
But,
suddenly, like a flash of light from the swamps, we are stunned by a rational
argument and some sorely needed instruction in arithmetic from an unlikely
source:
"Nobody, no individual nor country, can indefinitely spend more than
she or he earns. Two plus two always adds up
to four, never five," he said. "Within the conditions of our
imperfect socialism, due to our own shortcomings, two plus two often adds up to three."—Cuban President Raúl Castro
This seems to ring in key and harmony with some comments by
Warren Buffett:
“Every country that has denominated its debt in its own currency and has
found itself with uncomfortable amounts of debt relative to the rest of the
world, in the end they inflate,” Buffett explains. That becomes a tax on everybody that has fixed dollar investments.”--Buffett Sees Massive Inflation
to Handle Staggering Debt. Monday,
May 4, 2009
By Dan Weil [Emphasis is mine in all quotes]
But, this nonsense is refuted out
of hand by Paul Krugman:
“The truth is that
the falling dollar is good news. For one thing, it’s mainly the result of
rising confidence [??? ed]: the dollar rose at
the height of the financial crisis as panicked investors sought safe haven in
America, and it’s falling again now that the fear is subsiding. And a lower
dollar is good for U.S. exporters, helping us make the
transition away from huge trade deficits to a more sustainable international
position.”-- Misguided Monetary Mentalities By
Paul Krugman
Isn’t this strange? War is Peace;
Poverty is Prosperity.
We wonder
if the peace-loving Swedes have reclaimed their basis of reasoning and, with
fewer suicides
and fewer syphilis cases,
might want to consider Castro’s brother for the Nobel Prize in Economics. Raul seems to know a few things about
prosperity and failed socialism that have escaped the Swedes and their victims.
The Swedes must have forgotten how to
count as now many more men than women are reported have the Disease of
Venus. This is not possible! Or, there
may be another explanation.
It is
clear that the economic world has been tossed on its ear and that those who are
enlightened are shifting from Marxism and socialism into capitalism and visa
versa. It is also clear that many of our elected officials have no clues how to
maintain an orderly currency or budget. If we must direct the attention of our
financial gurus to the island of Cuba for elementary instruction in
arithmetic and economics this is going to be a long, dismal decade in
hyperinflation and serfdom.
Maybe Congress can get the Noble
Prize for showing that in our economic case 2 +2 =2 and best the Cubans.
rycK
Comments:
ryckki@gmail.com
Treasury slams EU report warning Britain
faces debt spiral. The Treasury has lashed out at the European Commission in
highly charged language after it suggested that Britain
risks a debt compound spiral that could push public borrowing to levels never
seen in a modern democracy. By Ambrose Evans-Pritchard Published 14 Oct 2009 [Emphasis is mine in
all quotes.]
Reprinted from a previous blog:
The Dollar Sags in Full View of the World This Invites a Run on the Dollar.
Inflation Threatens US.
Obama Receives the Ultimate
Insult: The Swede's Bozo Prize for Leftist Stooges.
Paul Krugman Mumbles about
Misguided Monetary Mentalities and Offers Other Hokums about our Currency