How to Maximize Economic Potential

Posted on May 20, 2016 by MN Gordon

Problems, as people commonly perceive them, require solutions.  Broken shoelaces must get fixed.  Regrettably, in today’s democracy this means the candidate who offers the most fixes – in the form of goodies – to the most people wins the election.

The Gallop poll reported earlier this week that 18 percent of U.S. adults believe the “economy in general” is the most important problem facing the country.  This was followed by 13 percent who believe “dissatisfaction with government” is the top problem.  Rounding out the third highest response were the 9 percent that believe “unemployment and jobs” is of highest concern.

As far as we can tell, these top three responses are one in the same.  When the economy is growing, and well-paying jobs are prevalent, the government gets a pass on its failures.  But a sagging economy, and a dearth of jobs, brings out the torches and pitchforks.

Scratching the surface a bit more, in search of clarity beneath, we consider whether the Gallop poll is providing the wrong response choices.  In particular, how can the “economy in general” be a response to the question of what is the most important problem facing the country today? Continue reading →

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Even Death Won’t Save Us

Posted on May 13, 2016 by MN Gordon

Rubbernecking at the economic train wreck of central planners is not without hazard.  A strained collar and dry eyes, for instance, are common perils.  So, too, is the lasting grimace of disbelief that comes with the rollout of each zany scheme to save us from ourselves.

Etched forehead lines and nighttime bruxism are several of the secondary effects.  Not owning shares of Amazon is another.  Though, over the long term, this will likely be an advantage.

Certainly, gawping at the present execution of monetary and fiscal policy in America is not without some benefit.  A healthy suspicion is garnered of politicians and public officials.  This, at the very least, relieves us from voter’s remorse.  Since we didn’t vote for President Obama we don’t have to live with the soiled conscious that most surely befalls those who made this grave miscalculation.

There’s also the preservation of one’s dignity that comes with the unwillingness to join in on the latest populace fad.  What a crock the Tea Party and Occupy Wall Street movements turned out to be. Continue reading →

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The Cure is Worse than the Disease

Posted on May 6, 2016 by MN Gordon

Today we look back to the recent past with singleness of purpose.  Context and edification for the present economy is what we’re after.  We have questions…

How come the recovery has been so weak?  Why is it that, nearly seven years after the official end of the Great Recession, the economy’s still mired in a soft muddy quag?  Squinting, focusing, and refocusing, there’s one particular week that rises above all others.

On Saturday September 20, 2008, Treasury Secretary Hank Paulson delivered a draft of the Troubled Asset Relief Program (TARP) to Congress for review.  If you recall, it had been another wild week.  On Monday, September 15, after 158 years of operation, Lehman Brothers vanished from the face of the earth…Dick Fuld, “The Gorilla,” be damned.

All week the sky relentlessly fell on financial markets.  Even money market funds were in full panic.  In fact, a record $169.03 billion of capital had vacated money market funds in the week ended September 17. Continue reading →

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Gold Stampede Imminent

Posted on April 29, 2016 by MN Gordon

The mass impulse of a cattle stampede can be triggered by something as innocuous as a blowing tumbleweed.  A sudden startle, or a perceived threat, is all it takes to setoff this mass uncontrolled running.  Once the herd collectively begins charging in one direction it’ll eliminate everything in its path.

The only chance a rancher has is to fire off a pistol with the hope it turns the herd into itself.  If the rancher is successful, they’ll stampede in a giant circle.  If the rancher isn’t, they’ll run off a cliff.

Today’s modern man, a complex species that ranges between Homo sapiens and Homo neanderthalensis, like Bos taurus, is also predisposed to herd behavior.  What’s more, the human animal will take just about anything and everything to the extreme.  Religious pilgrimages, sporting events, music concerts, New Year’s Eve celebrations, and political rallies gone bad have all triggered deadly human stampedes.  Just last year, for instance, over 2,400 people were trampled to death during the Hajj Stampede in Saudi Arabia.

Moreover, in today’s frenetic society, humans are granted a variety of avenues for a mob dynamic to express itself. Continue reading →

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