Requiem for a Dictator: Kim Jong-il

There are places on the face of the earth where, although the sun may occasionally shine, they’ve never seen a ray of light.  There’s a cold dry Siberian no man’s land that extends east from the Ural Mountains to the Pacific coast, where small villages no one’s ever heard of, with names no one can pronounce, exist in lonely isolation.

Vyatskoye, Russia, in eastern Siberia is one of those villages.

When Kim Jong-il took in his first breath in 1941, it was of the frosty air of Vyatskoye.  His father, Kim Il-sung, was captain in the Soviet Red Army of a battalion of Korean and Chinese guerrillas stationed there.  Legend has it, upon his first gasp, the coldness instantly chilled over his infant mind, body, and soul.  To his death last Friday, they were never to thaw again.

There is something curiously fitting that destiny selected this moment for Kim Jong-il to step into the world.  No doubt, things were a little up in the cool air at the time.  The prospect that Germany and Japan could take over the Eurasian continent was still a real possibility.  Hitching Korea’s future to the coattails of Russia and China must have been the rational thing for the elder Kim to do.  For the younger Kim, this decision eventually led to his absolute power and rule over his North Korean countrymen. Continue reading

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How to Catch Fate’s Fortune

Believing In an Absurdity

[Editor’s note: Today’s Economic Prism is an excerpt of remarks made by Direct Expressions’ President and Founder MN Gordon at the annual company holiday party held last Saturday at the 555 East Steakhouse.]

“Fate throws fortune, but not everyone catches,” goes the Polish Proverb.  By our estimation, few bother to even try.

Several days ago Forbes published an article telling how six members of the Walton family – the original owners of Wal-Mart – have more wealth than the bottom 30 percent of Americans.  Clearly, the bottom 30 percent have neglected to cast their net.

People are too busy lamenting wealth disparity these days, and scheming ways to take what’s not theirs, than to add any real value to the world.  We bring this up not to disparage the bottom dwellers for their failings; but rather, to highlight one of the deep fallacies that have infected the land.

What we are referring to are the vast numbers of people who, through political conniving and government decree, believe they can live off the expense of others.  In other words, they believe in an absurdity. Continue reading

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In Praise of Scrooge

Federal Reserve Chairman Ben Bernanke did something extraordinarily remarkable on Tuesday…he did nothing.  Following the Federal Open Market Committee meeting, if you can believe it, Bernanke’s Fed statement made no monetary policy changes.

Certainly, this is an exceptional feat.  Remember, Bernanke’s the man responsible for covertly handing out $16 trillion of money created from thin air to U.S. banks, corporations, and foreign banks between December 2007 and June 2010.  Hardly a day goes by that he doesn’t give money to those who didn’t earn it and don’t deserve it.

Wall Street, of course, was disappointed by Bernanke’s inaction.  Surely, with the economy on the wane and the imminent crisis out of Europe, the Fed would come through with a big announcement – like QE3 – to buoy up stocks into the New Year…right?

Unfortunately for Wall Street, in the season of giving, Bernanke wasn’t his usual spendthrift self; he was Scrooge before Scrooge saw Marley’s ghost.  For the rest of us, off Wall Street, who earn and save our wealth in dollars, the additional pause in money printing, may preserve our paper money from turning to toilet paper for – at least – a little bit longer. Continue reading

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Teach a Man to Fish

Food is one of life’s vital essentials.  Procuring enough food to meet one’s daily needs is a rudimentary survival requirement.  So, too, people’s ability to sustain themselves is essential to a functioning economy.

Hunger, for sure, is a great motivator.  Obviously, some of the great advances of humanity have been inspired by an empty stomach.  Moreover, some of the recurring moments of human drudgery are tolerated to earn one’s daily bread.

For this reason, economies that are more open and free generally allow more people to feed themselves.  Conversely, economies that are overloaded with corruption, arbitrary property laws, and authoritarian governments generally have more people who are hungry.  In this respect, an increase in the number of people who are unable to provide their own food may signal that an economy’s breaking down…and that government fraud and central government meddling may have something to do with it.

According to the most recent U.S. Department of Agriculture statistics for September 2011, over 46 million people are now on food stamps.  This amounts to nearly 15 percent of the total U.S. population – an increase of 65 percent since just 2008. Continue reading

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