How Presidential Elections Are Won

The notion that Americans are a dense apathetic people, with no thought above reality television, is a favorite grievance of social critics and slanderers alike.  Yet, it has, in fact, only some reasonable basis.  The truth is that Americans, as a people, are not entirely indifferent and many are not lazy.

Certainly, the average American’s waist line has expanded a belt notch or two over the last half century.  So, too, spandex pants and oversized t-shirts have somehow gained acceptance as appropriate public attire.  Nonetheless, those Americans who haven’t been dispirited by public assistance still steadfastly get after it each day to improve their lot in life…or die trying.

Where politics is concerned, a passionate populace still reigns.  The mere mention of a presidential election rouses the emotions of even society’s most derelict individuals.  They’ll offer their most ardent opinion regardless of if they have any idea what they are talking about.

What is most important to most people is that they have a vote and that they’re free to express it.  The importance of using one’s vote wisely is secondary, if that. Continue reading

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The Fate of Markets

How quickly things change.  Several weeks ago stock market investors were riding high.  On the first day of the month, the DOW finished the day at 13,279…its highest close since December 2007.

It was just a matter of time – or so it seemed – until the DOW punched through its October 9, 2007, all-time high of 14,164.  You could just feel it.  Nonetheless, some weren’t buying.  They were selling…

“Sell in May and go away,” said the old-timers.

Obviously, so far, this has been good advice for those who bothered to listen.  Since May 1 the DOW has buckled like an overloaded mule…dropping 6.3 percent.  Even so, things could get much worse…

According to economist, Marc Faber, if the stock market were to move up much further we could witness a 1987 style crash.  On top of that, author, Chris Martenson, thinks we’re about to have another 2008-style crisis.  We suppose we’ll soon find out if they’re right.

In the meantime, stocks aren’t the only thing falling.  Oil, gold, copper, house prices…they’ve been going down too.  Yet not everything is going down. Continue reading

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The Breakdown of Planned Economies

Something big is coming to a head and there’s nothing to stop it.  Over the last half century – or longer – more and more intelligent and able people have become encumbered by government programs of compulsory philanthropy.  In some cases, several generations of families have been wholly dependent upon the state for their daily bread, roof over their heads, and shoes upon their feet.

But, alas, everyone cannot live off the expense of their neighbors indefinitely.  Moreover, as the debt supercycle peaks, complex social arrangements directed by the heavy hand of the state are imploding for everyone to witness.  In fact, last weekend brought forth more evidence that planned economies are coming undone.

In California, for example, retread Governor Jerry “Moonbeam” Brown revealed some remarkable insights on Saturday.  Namely, that the Golden State doesn’t have a $9.2 billion dollar budget deficit as previously thought.  No doubt, that would’ve been problematic.  But not as problematic as a $16 billion dollar budget deficit.  Somehow, since January, the funding gap has widened by $6.8 billion dollars – a 73 percent increase – without notice. Continue reading

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Paul Krugman Doesn’t Know T-Shirt Economics

The DOW eked out a slight gain yesterday.  Nonetheless, stocks are falling.  So are oil prices.  Gold too.  This, no doubt, brings good cheer to the Fed.  For it gives them cover to print more money.

Falling oil prices mask the effect of the Fed’s monetary inflation.  Falling gold prices allow the Fed to thumb their nose at all those curmudgeons who bought gold as an inflation hedge.  Falling stock prices increase calls from Wall Street for the Fed to do something.

But why must the Fed print more money?

For one thing, the Fed must print more money because that’s what they love to do…give the world an abundance of cheap money.  In addition to that, the Fed’s compelled to print more money because their guiding Keynesian theory tells them more money will result in more spending, which will solve everything.  More spending, they say, will result in an economic boom, resulting in more jobs…and, before you know it, everyone will grow richer together. Continue reading

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