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Posts Tagged ‘politics’

Ebola Outbreak In America Is Now Officially Out Of Control

October 16th, 2014

Ebola-YouTube-300x180Much of the responsibility for the Ebola crisis that the United States is now facing can be laid squarely at the feet of Barack Obama.  If Obama had banned all non-essential air travel between Read more…

Economy, Government, Markets, World News

Of Course Obama’s Amnesty Was Going To Cause A Massive Spike In Illegal Immigration

June 10th, 2014

immigrationSome of us tried to warn that this would happen.  When you create incentives for people to come to the United States illegally, of course that is exactly what they are going to do.  In recent months, many political observers have breathlessly been watching Read more…

Economy, Government, World News

The Same Garbage Continues To Spew Forth From Washington D.C.

April 25th, 2014

barack obamaThe American people are increasingly waking up to the fact that nothing ever seems to change in Washington D.C. no matter which political party is in power.  In fact, as you will see later on in this article, an all-time high 53 percent of all Americans Read more…

Economy, Government, World News

The Dumbing Down of America Is Accelerating

April 21st, 2014

america united statesA massive federal takeover of education known as “Common Core” is attempting to impose nationwide academic standards on public schools throughout the entire country.  Thanks to the backing of billionaire Bill Gates, endless promotion by the U.S. Department of Education Read more…

Economy, World News

What Barack Obama Neglected To Mention During The State of The Union Speech

January 30th, 2014

barack obamaShow this article to anyone that believes that the economy has actually improved under Barack Obama.  On Tuesday evening, Barack Obama once again attempted to convince all of us that things have gotten better while he has been in the White House.  Read more…

Economy, Government, World News

Obamacare Turning Into A Nightmare

November 13th, 2013

obamacareDid you know that Obamacare contains huge incentives that will actually motivate people to try to reduce their incomes?  It’s true.  Under Obamacare, making less money can pay off big time.  As you will see below, reducing your income by just $1,000 Read more…

Economy, Government, Healthcare

Election Fraud: Accounts Of Voting Machines Turning Mitt Romney Votes Into Barack Obama Votes

November 17th, 2012

Michael Snyder: Why is the mainstream media saying nothing about election fraud even though there are eyewitness reports from all over the country of voting machines turning Romney Read more…

Economy, Government

22 Signs That Voter Fraud Is Wildly Out Of Control And The Election Was A Sham

November 13th, 2012

Michael Snyder: After what we have seen this November, how is any American ever supposed to trust the integrity of our elections ever again?  There were over 70,000 reports of voting Read more…

Economy, Government, Markets

8 Shocking Rumors That Could Change The Outcome Of The U.S. Election

October 23rd, 2012

This is proving to be one of the tightest presidential elections in U.S. history, and with less than two weeks to go even a minor scandal could completely change the outcome of the race.  Read more…

Economy, Government

Big Oil Funding U.S. Politics

October 2nd, 2012

U.S. Rep. John Boehner, speaker of the House of Representatives, received nearly twice as much financial support from donors tied to the energy sector than did the next-closest recipient, a report from the National Wildlife Federation finds. The 20-page report highlights Read more…

Uncategorized

40 Reasons That Show Barack Obama And Mitt Romney Are Essentially The Same Candidate

August 20th, 2012

Michael Snyder: What a depressing choice the American people are being presented with this year.  We are at a point in our history where we desperately need a change of direction Read more…

Economy, Government

Federal Government: More Than 100 Million Americans Are On Welfare

August 17th, 2012

Michael Snyder: There are more Americans dependent on the federal government than ever before in U.S. history.  According to the Survey of Income and Program Participation conducted by the U.S. Census, well over 100 million Americans are enrolled in at least one welfare Read more…

Government

Darkening Storm Clouds on the US Civility Horizon

June 10th, 2011

Today, a new post on our friend Barry Ritholtz’s blog looks at Jack Cafferty’s new CNN Question of the Hour: What are the chances the US economy could eventually trigger violence in our country?

A few choice quotations help explain the perspective:

  • “A new CNN poll suggests 48 percent of Americans think the country is headed for another Great Depression in the next 12 months.”
  • “If our economy doesn’t turn around, and people don’t start feeling optimistic about their futures again, we could be headed for some ugly scenarios.”
  • James Carville remarked, “The current economy is so bad, there’s a heightened risk of civil unrest unless things begin changing for the better.”
  • “In the most recent jobs report, last Friday, more than half of the private sector jobs added were at McDonald’s.”

Some viewer reactions point out challenges with wealth disparity in the nation, as well as with increasing prices of gas, groceries, and other basic items as the ingredients of “a crumbling nation.” You can view more details in the video below which came to our attention via a Big Picture blog post on how the handling of the economic crisis may lead to civil unrest.

Darkening Storm Clouds on the US Civility Horizon originally appeared in the Daily Reckoning. The Daily Reckoning provides over half a million subscribers with literary economic perspective, global market analysis, and contrarian investment ideas.

Read more here:
Darkening Storm Clouds on the US Civility Horizon




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Commodities, Uncategorized

More Catalysts for the Impending Crisis

June 2nd, 2011

Somewhere in the sad tale of Raymond Zack lies a warning about the future – the new financial crisis the catalysts for which we were searching yesterday and the day before.

Zack, depressed and on disability, walked into San Francisco Bay on Monday…and allowed the tide to wash him away to his death. He was 52.

The windsurfers and joggers at Crown Memorial State Beach stood and watched. One called 911. Alameda police and firefighters showed up. They too stood and watched.

And that’s all they did.

Funding for the fire department’s water-rescue training program dried up in 2009. That meant firefighters had to use overtime hours to train… and OT has been cut back recently. So no one had the proper certification. “Without it, the city would be open to liability,” reports KGO-TV.

Two hours later, an off duty nurse swam out 50 yards to retrieve Zack’s body. Liability was no longer an issue.

“It’s like you are living in a different country,” a witness told the San Jose Mercury News.

Indeed it is. The country is broke. And the impact of its bankruptcy is beginning to show  from the bottom up. Libraries are closing in Charlotte, N.C. Garbage pickup is being cut back in Columbus, Ga. Camden, New Jersey’s police force has been cut in half.

As early as January 21, 2010 the Atlanta Journal Constitution was beginning to report on the seeds of the new crisis: “About 80 percent of stimulus money has gone directly to state governments,” the paper observed. “Instead of being used to create new jobs, the bulk of the money has been used to save existing state government jobs – teachers, law enforcement and others – and for shoring up sagging state budgets.”

In a new documentary, we’ve tentatively titled “Risk!”, we’ve been chronicling the challenge of entrepreneurs in the post-Panic environment to create and sustain new jobs. The policy mix that has come along with the effort to save government budgets has been anathema, in our opinion, to an environment that encourages entrepreneurship.

Unless the politics change, and people begin to realize that government, even at the local level, cannot be the guarantor of American prosperity, the economy will continue to be hollowed out from the inside. Capital, in large quantities, is being misallocated to saving unproductive government assets… and crowding out investment in job creating entrepreneurial efforts.

Worst of all, it’s not like the government is using its savings to fund their spending sprees. As you know, the US government has no savings. Instead policymakers have chosen to swipe Uncle Sam’s credit card and…poof, everything has been magically “paid” for.

We can’t help but sit back and wonder what the world looks like when that credit card is eventually cut off. Or when it becomes much more expensive for the Federal government to borrow money.

As we pointed out in our first film, I.O.U.S.A., the States can’t print money. They have to cut spending. They have to cut services like policeman, firefighters and trash collection. For most Americans, those cuts won’t be popular. As we’ve seen all across the country, people get angry they things they’ve been “promised” are cut.

But unlike the States, when the Federal government’s credit card it cut off they don’t have to cut back. They can continue to spend. Continue to promise. And continue to run the printing presses day and night to pay for political whims. But for how long?

Addison Wiggin
for The Daily Reckoning

More Catalysts for the Impending Crisis originally appeared in the Daily Reckoning. The Daily Reckoning provides over half a million subscribers with literary economic perspective, global market analysis, and contrarian investment ideas.

Read more here:
More Catalysts for the Impending Crisis




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Uncategorized

How Zombies Get Rich and Drive the US Economy

June 1st, 2011

First, let’s look at what Mr. Market is doing to see if he will give us a hint of what is going on. He’s supposed to know everything. And he’s supposed to look ahead and tell us what is coming.

So already, Mr. Smarty-Pants, what’s up? Alas, Mr. Market seems as confused as we are.

Stocks rose yesterday…for no apparent reason. Oil went up a little too. Gold stood still.

Interestingly, bond yields continue to fall. The 10-year note yields only 5 basis points over 3%. Since the government’s own calculation of inflation over the last three months puts it over 5%, this leaves the real yield negative by more than 200 basis points. What are bond buyers thinking? Beats us.

We only know what we’re thinking. And we’re thinking that anyone who buys bonds with a negative yield…while the Fed shows every intention of raising inflation rates further…is a moron.

Of course, he could turn out to be a very clever moron…or a lucky moron. Yields could continue to sink as the Great Correction does its work. The Fed could buy even more bonds – driving prices up (and yields down) further. But count us out. We’re not that clever. Nor that lucky.

Meanwhile, the housing slump has now wiped out 8 years of price increases.

Bloomberg is on the story:

Home prices in 20 US cities dropped in March to the lowest level since 2003, showing housing remains mired in a slump almost two years into the economic recovery.

The S&P/Case-Shiller index of property values in 20 cities fell 3.6 percent from March 2010, the biggest year-over-year decline since November 2009, the group said today in New York. At 138.16, the gauge was the weakest since March 2003.

Other reports today showed consumer confidence unexpectedly declined in May to a six-month low, and business activity in the US cooled more than forecast.

Nineteen of the 20 cities in the index showed a year-over-year decline, led by a 10 percent slump in Minneapolis. The exception was Washington, where values climbed 4.3 percent.

Prices in 12 markets dropped to fresh lows in March from their 2006, 2007 peaks: Atlanta, Charlotte, Chicago, Cleveland, Detroit, Las Vegas, Miami, Minneapolis, New York, Phoenix, Portland, Oregon, and Tampa.

Builders are gloomy and project demand will remain depressed into next year, Bill Wheat, chief financial officer of D.R. Horton Inc., told a housing conference in New York on May 11.

“We still see housing demand at very weak levels,” Wheat said. “It could still be a struggle in 2012.”

Did you notice? Only the zombies’ houses are rising in value. Alone among major metropolitan centers, Washington, DC posts real estate gains.

How is that possible? Oh don’t pretend to be so naïve. You know what the zombies are doing. Almost all GDP growth in the past 10 years has come from government spending. And the majority of household income growth since the beginning of the crisis in ‘07 has come from government transfer payments.

The zombies are flourishing, prospering…gorging themselves on the blood of the nation. Your editor sees it first hand. He lives among them. He watches them coming and going. He has learned their zombie language and studied their zombie ways. From a distance, they look like normal people. But up close, you see that they are imposters. Only their lowest-ranking members do any real work – picking up garbage or teaching kindergarten. As you move up the zombie hierarchy you find managers with no real responsibility and intellectuals with no real ideas.

Just read Jeffrey Sachs in yesterday’s Financial Times. Mr. Sachs is a member of the zombie intelligentsia: “The world economy is rife with lawlessness and recklessness,” he laments, “with tax havens and regulation-free zones catering to the avarice of globally mobile capital. [The new head of the IMF] should be given the task of systematically shutting these venues down…”

That’s right – hire more zombie regulators, tax collectors, and enforcers!

Why are zombies so rich? Here’s part of the answer, from The Washington Post:

It’s no secret that members of Congress qualify as political insiders, but a new report strongly suggests that they also may be insiders when it comes to trading stocks.

An extensive study released Wednesday in the journal Business and Politics found that the investments of members of the House of Representatives outperformed those of the average investor by 55 basis points per month, or 6 percent annually, suggesting that lawmakers are taking advantage of inside information to fatten their stock portfolios.

“We find strong evidence that members of the House have some type of non-public information which they use for personal gain,” according to four academics who authored the study, “Abnormal Returns From the Common Stock Investments of Members of the US House of Representatives.”

The professors reviewed more than 16,000 common stock transactions carried out by about 300 House members as revealed in the members’ financial-disclosure forms from 1985 to 2001.

In a 2004 study, the same professors found that US senators also enjoy a “substantial information advantage” over the average investor – and even corporate bigwigs – when it comes to picking stocks. The latest study shows that members of the Senate outperform their House colleagues by an average of 30 points per month.

Despite the GOP’s reputation as the party of the rich, House Republicans fared worse than their Democratic colleagues when it comes to investing, according to the study. The Democratic subsample of lawmakers beat the market by 73 basis points per month, or 9 percent annually, versus 18 basis points per month, or 2 percent annually, for the Republican sample.

Surely, the SEC is on the case! Demanding to see trading records of Members of Congress…probing into when…how…and why…the politicos made their trades, right? Nah… You really were born yesterday, weren’t you, dear reader? Zombies rarely pose a threat to each other. Congress exempted itself from the SEC.

Our old friend Doug Casey adds a comment:

…the SEC, which should really be called the Swindlers Encouragement Commission, [is] telling people it’s making sure everything’s fair, thus luring the lambs to the slaughter. The investment world is full of sharks, and it always will be – all the SEC does is lower the average guy’s defenses, which really does encourage swindlers. Just look at Bernie Madoff, a perfect example. The SEC has never prevented a fraud, to my knowledge. Rather, by making everyone think they’re protected, it makes a fraud much easier to perpetrate. Lambs to the slaughter.

It gets worse: adding insult to injury, the SEC costs business billions of dollars annually – probably scores of billions, if you take all the secondary and trickle-down costs into account: direct fees, legal fees, printing, mailing, and other costs of compliance. They have a direct budget cost of something over a billion dollars per year, but that’s trivial relative to the indirect costs they impose on the economy. They ought to be ashamed, diverting a significant fraction of GDP from productive use into the pockets of parasites, in the name of protecting business and investors, when they do the opposite. The SEC is like a Pied Piper who attracts ravening hordes of rats with his flute instead of getting rid of them – and then charges people tenfold for the “service.”

This is one agency I would abolish, immediately and completely. Not a single one of its functions should even be handed off to other agencies. The SEC serves absolutely no useful purpose whatsoever – just the opposite. It’s not a question of getting it under control, or paring it back. It should be eliminated in toto.

Regards,

Bill Bonner
for The Daily Reckoning

How Zombies Get Rich and Drive the US Economy originally appeared in the Daily Reckoning. The Daily Reckoning provides over half a million subscribers with literary economic perspective, global market analysis, and contrarian investment ideas.

Read more here:
How Zombies Get Rich and Drive the US Economy




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Real Estate, Uncategorized

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